Aqua Metals and 6K Energy Sign Strategic Supply Agreement to Establish North America’s First Sustainable Lithium Battery Supply Chain.
Aqua Metals (NASDAQ: AQMS) and 6K Energy announced the signing of a strategic supply agreement today, establishing North America’s first sustainable circular supply chain for the critical minerals essential for manufacturing lithium-ion batteries. Aqua Metals will deliver sustainably recycled battery materials from its Sierra ARC facility in Reno, NV for 6K Energy to manufacture cathode active material (CAM) with a low carbon footprint at its PlusCAM™ facility in Jackson, TN.
This supply agreement marks a pioneering step in building North American battery manufacturing capacity that will qualify for domestic content incentives under the Inflation Reduction Act, aligning with the United States’ efforts to expand manufacturing capabilities, establish resilient supply chains, and reduce carbon emissions. Based on today’s metals prices, the materials supplied under this off-take agreement have an estimated value of more than $50 million annually once 6K Energy’s PlusCAM™ and Aqua Metals’ Sierra ARC facilities reach capacity.
Steve Cotton, President and CEO of Aqua Metals, emphasized the transformative nature of this collaboration:
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Our strategic agreement with 6K Energy represents a pivotal moment in our mission to build a more sustainable battery ecosystem from the ground up here in North America.
“Together, we are demonstrating the viability and economic benefits of closed-loop recycling for critical battery metals and laying the foundation for the US to claim leadership in this rapidly accelerating global industry.”
Starting in 2024, Aqua Metals will supply 6K Energy with sustainably recycled critical minerals, ramping up to provide 30% of the nickel and lithium carbonate needed for 6K Energy’s PlusCAM facility. The commitment to utilize up to 30% recycled feedstock presents a unique value proposition, allowing EV and lithium battery manufacturers to benefit from low-carbon, low-cost, and domestically produced cathode materials for the first time.
6K Energy, leveraging its UniMelt® manufacturing process, stands at the forefront of low-carbon battery material production. “This agreement extends beyond a supply contract; it’s a partnership aimed at redefining industry standards for environmental responsibility and cost-efficiency in battery material production. 6K Energy will be the first in North America to incorporate large quantities of sustainably recycled metals into our advanced battery materials using our low-cost, low-carbon footprint CAM production technology,” stated Sam Trinch, President of 6K Energy.
As the United States expands lithium battery manufacturing capacity to nearly one terawatt-hour by 2030, the alliance between Aqua Metals and 6K Energy aims to establish North America’s only sustainable closed-loop supply chain for critical battery materials. This first-of-its-kind collaboration addresses the escalating demand for recycling manufacturing scrap and end-of-life batteries, and firmly positions the companies at the forefront of the movement towards a sustainable, resilient, and economically viable battery manufacturing ecosystem in the US.
The core of Aqua Metals’ and 6K Energy’s position as pioneers of a sustainable supply chain lies in their innovative, electrified processes. Both companies utilize technologies that can be powered entirely by clean energy and have a clear pathway to net-zero operations in the future. Each company also eliminates the production of thousands of tonnes of sodium sulfate waste through their patented processes—a byproduct that traditional cathode production and recycling methods generate in significant quantities.
By leveraging their unique, clean technologies, Aqua Metals and 6K Energy are establishing a new standard for the industry, demonstrating that a truly sustainable closed-loop process for battery minerals is a vision for the future that is being built today.
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Aqua Metals and 6K Energy Sign Strategic Supply Agreement to Establish North America’s First Sustainable Lithium Battery Supply Chain. source
