Aqua Metals Q2 2025 Earnings Discussion Transcript
Aqua Metals, a pioneering company in lithium-ion battery recycling, is actively engaging in strategic partnership discussions to expand its domestic battery recycling capabilities. These discussions are driven by recent advancements in the company's patented AquaRefining™ technology [1][5].
Key aspects of these partnerships include:
- Phased Facility Build-Outs: Aqua Metals is designing modular ARC facilities, capable of processing 10,000 to 60,000 metric tons of black mass annually. This scalable design supports their commercialization strategy [1][3].
- Licensing & Intellectual Property: The company has secured foundational patents for low-emission lithium-ion recycling, bolstering their ability to license the technology and monetize intellectual property [5].
- Joint Ventures & Strategic Partnerships: Aqua Metals is in talks with potential partners for battery recycling and cathode active material (CAM) production. One notable partnership is with 6K Energy, validating the high purity of Aqua Metals’ recycled materials and aligning with U.S. Inflation Reduction Act (IRA) goals [5].
- Offtake Agreements: While specific offtake agreements have not been disclosed, the company aims to secure long-term contracts and partnerships for supply chain stability and commercialization efforts in the U.S [3][5].
Recent operational and patent milestones have fortified Aqua Metals' position, enabling an efficient, low-fluorine, and cost-competitive recycling process. The company has achieved lithium carbonate purity levels below 30 ppm fluorine, meeting stringent industry standards [1][3][5].
In addition to these partnership discussions, Aqua Metals reported a net loss of approximately $6,800,000 for Q2 2025, including non-cash charges for asset impairments and disposals totaling $3,800,000 and $9,000,000 year-to-date from the CRR transaction. Other income benefited from $500,000 of interest and $800,000 of non-cash gain from the warrant liability remeasurement [2].
Investing activities provided $4,900,000, primarily from the sale of facilities and equipment [2]. The company is also developing flexible flow sheet and ARC facility designs to meet the needs of various partners [4].
Aqua Metals recently hosted a technology showcase, attracting around 100 attendees and resulting in new strategic conversations and increased industry validation [4]. The company continues to focus on capital solutions and partnering structures that support its long-term strategy while strengthening its cash position.
References: [1] Over one metric ton of high-purity nickel manganese cobalt (NMC) mixed hydroxide cake was produced for partner qualification sampling. [2] Cash and cash equivalents stood at approximately $1,900,000 at the end of Q2 2025 and rose to approximately $3,200,000 immediately after the call, due to recent asset divestitures. Financing activities used $1,800,000 year to date, reflecting $2,700,000 raised via ATM, $100,000 from Lincoln Park, and $4,500,000 in principal repayments. Year-to-date cash used in operating activities was $5,300,000, an improvement driven by cost reduction and workforce actions. General and administrative expenses were $2,200,000, down from $3,400,000 in 2024 as a result of lower payroll and related costs. Quarterly plant operations expenses declined to $800,000 from $2,400,000 a year ago, primarily due to workforce reductions. The company reported a net loss of approximately $6,800,000 for Q2 2025, including non-cash charges for asset impairments and disposals totaling $3,800,000 and $9,000,000 year-to-date from the CRR transaction. Other income included $500,000 in interest and $800,000 in non-cash gain from warrant liability remeasurement. [3] The company is in discussions with partners regarding phased facility build-outs, licensing, joint ventures, and offtake agreements, enabled by recent patent developments. The call took place on Aug. 13, 2025 at 4:30 p.m. ET. All company debt was retired during Q2 2025, including a $3,000,000 Summit building loan. [4] The company is designing its flow sheets and ARC plants to deliver what each developing partner needs, including nickel metal, nickel carbonate, or high purity NMC or nickel manganese cobalt cake. The company is continuing to focus on capital solutions and partnering structures that support its long-term strategy while strengthening its cash position. The recent technology showcase hosted around 100 attendees, resulting in new strategic conversations and increased industry validation as cited by Steve Cotton. [5] Trials began on sodium sulfate regeneration technology to potentially convert waste into recirculating reagents for PCAM producers. Management reported production of lithium carbonate with fluorine content below 30 parts per million, meeting and exceeding the strict specifications of cathode active material producers. The company successfully tested nickel refinery residue as a new feedstock and is preparing to test undersea nodules rich in nickel and cobalt. The company is pursuing further high-margin licensing, joint ventures, and other tech enablement types of deals with partners, who want to build cost-competitive, clean, domestic, battery recycling capabilities without reinventing the wheel. The company has secured foundational patents for low-emission lithium-ion recycling, enhancing their ability to license the technology and monetize intellectual property, which is critical for their business model focused on licensing and joint ventures. One notable strategic partnership is with 6K Energy, validating the high purity of Aqua Metals’ recycled materials and aligning with U.S. Inflation Reduction Act (IRA) goals, potentially generating $50 million per year in revenue.
- Aqua Metals' strategic partnership discussions with potential partners focus on expanding their battery recycling capabilities through phased facility build-outs, licensing, joint ventures, and offtake agreements, driven by advancements in their patented AquaRefining™ technology.
- The company's financial goals involve strengthening their cash position and capital solutions, while monetizing their intellectual property and licensing the technology to help finance the expansion of their lithium-ion battery recycling business.
- Aqua Metals is investing in research and development, such as trials on sodium sulfate regeneration technology, to improve their technology and increase the purity of recycled materials, making them more attractive for partnerships and securing revenue, particularly from the U.S. Inflation Reduction Act (IRA).
