Aqua Metals, a leading firm in battery metals recycling and refining, has entered into a significant three-year supply agreement with 6K Energy, a U.S.-based producer of cathode active materials (CAM). This collaboration aims to bolster the domestic supply chain for essential battery components.
Strategic Supply Agreement for Battery-Grade Materials
The newly established commercial framework will facilitate the future supply of battery-grade nickel metal and lithium carbonate to 6K Energy. These crucial materials will be produced utilizing Aqua Metals’ proprietary AquaRefining process. This innovative method is designed for environmental efficiency, operating without hydrogen peroxide or sodium hydroxide, while regenerating sulfuric acid for reuse.
A key environmental benefit of the AquaRefining process is its production of zero sodium sulfate waste, establishing a closed-loop system. This approach aligns with growing industry demands for sustainable and responsible sourcing of raw materials.
Collaborative Approach to Product and Pricing
Aqua Metals and 6K Energy are committed to closely aligning on product specifications and qualification pathways. They will also collaborate on index-based pricing mechanisms, ensuring that recycled and refined battery materials can be effectively integrated into domestic cathode manufacturing operations.
Under the terms of the agreement, 6K Energy will have the option to purchase battery-grade nickel metal and lithium carbonate. The pricing will be determined by London Metal Exchange trading prices at the time of purchase. The potential annual value of these battery materials could reach tens of millions of dollars, contingent upon successful qualification, prevailing market conditions, and the scale of operations.
Foundations for Future Growth and Compliance
This strategic agreement is predicated on the successful completion of 6K Energy’s proposed battery material production facility and Aqua Metals’ expansion of its recycling facility. Both companies are investing in infrastructure to meet the growing demand for advanced battery materials.
The materials supplied through this partnership are expected to adhere to Foreign Entity of Concern (FEOC) compliance requirements. This is a critical step in supporting broader national objectives to establish secure, resilient, and transparent domestic battery materials infrastructure.
Flexibility for Evolving Market Needs
The agreement also incorporates optionality for future collaborative efforts. This includes the potential evaluation of tolling arrangements for lithium-ion battery black mass. Such flexibility is central to Aqua Metals’ strategy of developing a feedstock-agnostic refining platform.
This platform is designed to support multiple battery chemistries, encompassing both nickel-based and lithium iron phosphate (LFP) systems. As the electric vehicle market continues its rapid evolution, this adaptability positions Aqua Metals to meet diverse and changing industry demands.
Industry Perspectives on Domestic Sourcing
Saurabh Ullal, President of 6K Energy, emphasized the importance of this partnership. “A reliable supply of high-purity, compliant battery materials is essential to scaling cathode manufacturing in the United States,” Ullal stated.
He further elaborated on the significance of the collaboration: “This agreement with Aqua Metals creates a framework to evaluate and integrate recycled and refined nickel and lithium materials that meet our technical requirements while supporting our domestic sourcing objectives.”
The partnership between Aqua Metals and 6K Energy marks a significant step forward in strengthening the U.S. battery supply chain. By focusing on recycled materials and advanced refining processes, both companies are contributing to a more sustainable and secure future for electric vehicle manufacturing.