Aqua Metals, Inc. has recently announced a strategic partnership with Yulho Co., Ltd., a South Korean storage solution and battery materials company. The partnership aims to drive innovation in lithium battery recycling and establish a low-carbon, circular supply of critical minerals for the electrified future.
As part of the partnership, Yulho will make a strategic equity investment of $5 million in Aqua Metals. This investment demonstrates Yulho’s confidence in Aqua Metals’ transformative technology and its successful pilot-scale facility. The parties have entered into a securities purchase agreement, and the investment is expected to close on or about August 4, 2023. In addition to the capital investment, Aqua Metals will grant Yulho a license to deploy its patented AquaRefining™ technology in South Korea.
Aqua Metals believes that this partnership, along with its recently announced public equity raise, marks a transformative moment for the company. The investment from Yulho and the proposed partnership will accelerate Aqua Metals’ commercial operations in the United States and bring its AquaRefining technology to South Korea, one of the largest markets for critical minerals in Asia.
The strategic partnership aims to leverage the strengths of both companies. Yulho, with its 25 years of experience in South Korea’s advanced technology sector, has established relationships with the country’s largest lithium battery and electric vehicle companies. This positions Yulho to rapidly scale operations and meet the growing demand for recycled materials in Asia. Yulho Materials, a subsidiary of Yulho, collects and processes battery manufacturing scrap and spent lithium-ion batteries into ‘black mass,’ which contains valuable battery materials that Aqua Metals recovers.
Yulho Materials has already completed the pilot demonstration of its proprietary black mass process and has provided high-quality material samples to Aqua Metals. Currently, Yulho is building a high-purity black mass facility with an annual capacity of 8,000 metric tonnes, the largest in South Korea. Production is expected to start later this year, with plans to expand to 24,000 tonnes in the future.
On the other hand, Aqua Metals operates the first sustainable lithium battery recycling facility in the United States. The company has become a leader in the low-carbon, circular supply of critical battery materials. Aqua Metals utilizes its AquaRefining technology to recover metals and minerals from lithium battery black mass without the use of polluting furnaces or intensive chemical processes, minimizing carbon emissions and chemical waste.
The CEOs of both companies have expressed their optimism about the partnership. Aqua Metals’ CEO Steve Cotton believes that this partnership will be a pivotal step in the company’s long-term vision for global growth. Yulho’s CEO Jeong-Nam Lee has expressed anticipation of significant synergy resulting from this partnership and aims to pursue collaborative ventures with Aqua Metals beyond a simple technology swap and joint venture establishment.
In addition to the equity investment, Yulho has agreed to purchase approximately 4.5 million shares of Aqua Metals’ common stock at a price of $1.10 per share in a registered direct offering, totaling $5 million gross proceeds. The initial licensing agreement between Aqua Metals and Yulho is expected to allow for the processing of up to 100,000 tonnes of materials per year in South Korea. Both companies have prospects of expanding their relationship beyond Asia and into the European Union.
The deal was arranged by Network 1 Financial Securities and Nexpedia Holdings Co., Ltd.
