{
“title”: “Aqua Metals and American Battery Factory Eye Strategic Partnership to Boost US EV Battery Supply Chain”,
“content”: “
Aqua Metals, a specialist in metals recycling and refining, has entered into a non-binding Memorandum of Understanding (MOU) with American Battery Factory (ABF), a manufacturer of lithium iron phosphate (LFP) battery cells. The proposed collaboration aims to enhance the domestic battery materials supply chain through advanced recycling and circular manufacturing practices.
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Potential Co-location in Tucson, Arizona
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As part of the agreement, the two companies plan to explore the feasibility of co-locating a commercial Aqua Metals lithium-ion battery recycling facility. This facility would be situated adjacent to ABF’s planned battery cell manufacturing operations in Tucson, Arizona. The proposed recycling plant is designed to process up to 10,000 metric tons of lithium-ion battery materials annually, encompassing both manufacturing scrap and third-party feedstock.
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Innovative Recycling Technology
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Aqua Metals’ proprietary AquaRefining technology utilizes an electricity-powered, closed-loop system that replaces traditional high-temperature furnaces and chemical-intensive hydrometallurgical processes. This collaboration would allow Aqua Metals to recycle manufacturing scrap generated by ABF and subsequently supply battery-grade lithium carbonate back into ABF’s production process or to other downstream partners.
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Strengthening Domestic Supply Chain Resilience
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By integrating recycling directly into the battery manufacturing lifecycle, Aqua Metals and ABF aim to achieve greater cost competitiveness, reduce logistical complexities, and bolster the resilience of the US domestic supply chain. The companies also intend to assess how domestic manufacturing incentives, such as the 45X Advanced Manufacturing Production Tax Credit, could further improve the economic viability of US-based battery materials production.
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Timeline and Future Agreements
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Any definitive agreements stemming from this MOU will be contingent upon securing financing, obtaining necessary permits, and receiving regulatory approvals. The companies are targeting the commencement of commercial operations in 2028.
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CEO Statement
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Steve Cotton, President and CEO of Aqua Metals, commented on the significance of the collaboration: “This strategic collaboration reflects our belief that domestic battery recycling must be economically viable, not just environmentally preferable. By working alongside American Battery Factory, we are evaluating a model that would keep valuable materials in circulation, support US manufacturing jobs, and offer a realistic alternative to exporting battery scrap overseas for processing methods that simply do not translate well to the United States.””n
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}