Ace Green Recycling, a Global Leader in Battery Recycling Technology, to Become a Public Company

Ace Green Recycling, a Global Leader in Battery Recycling Technology, to Become a Public Company

• Ace’s innovative modular battery recycling platform is designed to minimize battery waste and retain critical battery materials of strategic importance.
• Ace, with commercial operations in Asia, is focused on global expansion and plans to develop a flagship battery recycling plant in Texas for lead and lithium-ion batteries.
• Ace believes that it is uniquely positioned to commercially recycle both lead and lithium-ion batteries using fully electrified processes that produce zero Scope 1 emissions, zero toxic water and zero solid waste.
• Ace has established a robust network of supply chain partners, including a 15-year offtake agreement with Glencore, one of the world’s largest global diversified natural resource companies and a leading company in the recycling industry.
• Ace is assigned an equity value of $250 million in the transaction, which is expected to close in the first half of 2025.

HOUSTON, Dec. 4, 2024 /PRNewswire/ — Ace Green Recycling, Inc. (“Ace” or the “Company”), a leading provider of sustainable battery recycling technology solutions, and Athena Technology Acquisition Corp. II (“ATAC II”) (NYSE: ATEK), a special purpose acquisition company, today announced that they have entered into a definitive business combination agreement, pursuant to which a wholly-owned subsidiary of ATAC II will merge with and into Ace, with Ace becoming a wholly-owned subsidiary of ATAC II and Ace’s operations becoming the operating business of the combined entity.

Ace’s revolutionary battery recycling technology focuses on recovering critical battery materials from both lead and lithium-ion batteries. The Company’s innovative and modular technologies are fully electrified, producing zero Scope 1 emissions, zero toxic water and zero solid waste. These capabilities position Ace as a provider of hydrometallurgical recycling solutions without any smelting or thermal processes for both lead and lithium batteries. Ace currently operates commercial facilities in India (lithium-ion; since 2023) that it owns and has licensed its technology to ACME Metal in Taiwan (lead; since 2024), with advanced plans to deploy its technology by building its own plant in the United States. The Company has proven its technology’s commercial credentials by enabling processing of more than three million pounds of lead and lithium batteries in India and Taiwan. 

The Company’s LithiumFirst™ technology is capable of commercially recovering up to 75% of lithium with a purity exceeding 99% from lithium iron phosphate (“LFP”) and Nickel Manganese Cobalt (“NMC”) batteries. In addition to recovering Lithium, the Company’s LithiumFirst^TM technology also recovers NMC salts, graphite, iron phosphate and other materials such as plastics, steel, aluminum and copper by utilizing a closed-loop hydrometallurgical process that avoids pyrometallurgical operations and produces no liquid waste or Scope 1 carbon emissions.

Ace’s GREENLEAD® Recovery Technology is a fully electric process that produces zero Scope 1 emissions and is capable of recovering up to 99% of battery-grade lead with more than 99.98% purity. Ace’s process is designed to replace legacy smelting operations, which are detrimental to the environment, as well as human health due to potential lead poisoning, and is expected to facilitate a more streamlined permitting process.

Ace’s expansion strategy centers on the development of battery recycling plants in the U.S., creating centralized hubs for the sustainable recovery of valuable materials from end-of-life batteries. These plants are expected:

• Drive domestic job creation: Generate high-quality manufacturing jobs in the U.S., stimulating local economies and strengthening America’s workforce.
• Enhance critical battery material security: Reduce reliance on foreign sources of critical minerals such as lithium, cobalt, nickel and lead, bolstering domestic supply chains and supporting the growth of the U.S. electric vehicle and renewable energy sectors.
• Promote renewable energy partnerships: Develop partnerships for renewable captive power with distributed power generators, further minimizing the environmental impact of operations.

Key Investment Highlights

• Commercial Stage/Revenue Generating: Ace operates commercial facilities in India (since 2023) and Taiwan (since 2024), with planned project development in the U.S. (Texas), Europe, and Israel, along with complimentary supply chain operations. The Company is currently generating approximately $23 million in annual revenue.
• Large Target Markets: Ace’s market strategy targets immense opportunities across two core sectors: the mature lead battery recycling market, valued at over $20 billion in 2024, and the rapidly growing lithium-ion battery recycling market, projected to exceed $35 billion by 2040.
• Anticipated Profitability in 2026: Unique modular, cost-effective deployment strategy allows for high margins and an efficient CapEx and OpEx model.
• Diversified Business Model: The Company monetizes considerable opportunities in battery recycling through owned and operated facilities, joint venture and licensing agreements, and supply chain and services contracts.
• Differentiated and Superior Proprietary Green Technology: Already approved by regulators in key global markets, Ace’s electrified process eliminates the typical toxic waste and carbon emissions that have forced the shutdown of peer facilities. Additionally, Ace is differentiated in its ability to process both lead and lithium batteries, including LFP, as its competitors are generally unable to process LFP batteries and are able to process either lead or lithium batteries, but not both.
• Superior Supply-Chain Expertise: Ace believes that it is poised for global expansion, supported by a robust network of supply chain partners across the U.S., Europe, Asia and Africa.
• Anchored by Marquee Customers: Global offtake agreement with Glencore, one of the world’s largest global diversified natural resource companies and a leading company in the recycling industry, underpins the high demand for low-cost feedstock to enable the electrification of vehicles, solar energy and the transition to green energy solutions.
• Supportive Global Tailwinds: National security, economic and sustainability initiatives have globalized the refining of feedstock and battery production away from traditional sources.
• U.S. Focus: We believe that Ace’s planned facility in Texas and anticipated U.S. footprint will support the U.S. in safeguarding its critical battery metals supply chain. Additionally, Ace is collaborating with the U.S. Department of Energy’s National Renewable Energy Laboratory for advanced research on recycling of LFP batteries and upcycling of spent graphite to battery grade.
• Leading IP Portfolio: Executing customized IP strategies in the lithium and lead recycling spaces, Ace has developed an industry-leading IP portfolio consisting of utility patents, stealth patents and trade secrets supported by more than a decade of research and development (“R&D”). Ace also collaborates with R&D institutions such as the Indian Institute of Technology and Singapore Polytechnic on battery recycling topics.
• Management Expertise: Ace’s team of industry leaders brings together diverse expertise in battery recycling, green energy, business development and global strategy.
• Backed by Seasoned Industry Investors: Ace’s current investors have deep expertise in the metals and recycling sectors, including Claude Dauphin Family Office, former executives at Trafigura, Circulate Capital, and the Francis Family Fund ApS.

Management Commentary

Nishchay Chadha, CEO of Ace, said :

Ace is advancing electrification by building a global recycling technology to create sustainable supply chain solutions for critical metals that will enable next-generation technologies,

“Compared to other recyclers, we employ a modular, fully electrified, low CapEx strategy, addressing two distinct and sizeable markets in lead and lithium-ion batteries. We believe that this approach will allow us to rapidly achieve commercial scale while diversifying both our feedstock and end-markets. Our planned focus on the U.S. market makes listing on a U.S. exchange a strategic move that better aligns our goals with our core stakeholders.”

Transaction Overview

The proposed business combination (the “Proposed Business Combination”) is expected to close in the first half of 2025, subject to customary closing conditions including regulatory, court and shareholder approvals. Concurrently, Ace expects to complete a financing from existing insiders and various strategic and fundamental investors.

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