Aqua Metals and American Battery Factory Announce Proposed Strategic Collaboration to Advance Domestic Circular Supply of Battery Materials
Rhea-AI Summary
Aqua Metals (NASDAQ: AQMS) and American Battery Factory announced a proposed strategic collaboration under a non-binding MOU to evaluate co-locating an Aqua Metals commercial lithium-ion recycling facility adjacent to ABF’s planned Tucson cell manufacturing site.
The plan contemplates AquaRefining™ recycling of manufacturing scrap to produce battery-grade lithium carbonate, a commercial-scale facility up to 10,000 metric tons annually, potential use of the 45X production tax credit, and a targeted start of commercial operations in 2028, subject to financing, permits, and regulatory approvals.
Positive
- Proposed co-location to process up to 10,000 metric tons annually
- AquaRefining™ aims to produce battery-grade lithium carbonate for reuse
- Targeted commercial start in 2028 aligns with US manufacturing growth
- Potential eligibility for the 45X Advanced Manufacturing Production Tax Credit
Negative
- Agreement is a non-binding MOU — no definitive commitments yet
- Project subject to financing, permitting, and regulatory approvals
- Commercial outcome depends on securing third-party feedstock and ABF scrap
News Market Reaction – AQMS
In the Feb 3 session, AQMS gained 1.03%, reflecting a mild positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Historical Context
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Jan 21 | Supply agreement | Positive | -6.3% | Multi‑year supply deal with 6K Energy for nickel and lithium carbonate. |
| Nov 12 | Earnings update | Positive | +15.7% | Q3 2025 results and progress toward AquaRefining™ commercialization. |
| Nov 10 | LOI partnership | Positive | -4.2% | LOI with Westwin Elements for 500–1,000 MT recycled nickel carbonate. |
| Nov 04 | Business update call | Positive | -3.1% | Announcement of quarterly business update and Q3 2025 results timing. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Recent strategic and commercialization updates have often seen share-price weakness despite generally positive operational messages, with only one of the last four news items producing a positive next‑day move.
Over the past several months, Aqua Metals has focused on commercializing AquaRefining™ and building a domestic battery‑materials ecosystem. A November 2025 MOU with MOBY Robotics targeted deep‑sea polymetallic nodules, followed by an LOI with Westwin Elements for recycled nickel carbonate supply and a Q3 2025 update highlighting funding and pilot LFP processing. In January 2026, a multi‑year supply agreement with 6K Energy outlined index‑linked, potentially multi‑year volumes. Today’s proposed collaboration with American Battery Factory fits this pattern of expanding partnerships and co‑location strategies for U.S. battery materials.
Key Terms
lithium iron phosphate (lfp) medical
lithium-ion battery technical
memorandum of understanding (mou) regulatory
battery-grade lithium carbonate technical
black mass technical
hydrometallurgical technical
45x advanced manufacturing production tax credit financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
Strategic collaboration would highlight a cost-competitive, domestic alternative to overseas battery materials processing
TUCSON, Ariz. and RENO, Nev. , Feb. 03, 2026 (GLOBE NEWSWIRE) -- Aqua Metals, Inc. (NASDAQ: AQMS), a pioneer in clean metals recycling and refining, and American Battery Factory (ABF), a lithium iron phosphate (LFP) battery cell manufacturer, today announced a proposed strategic collaboration focused on advancing a more competitive, domestic battery materials supply chain through recycling and circular manufacturing.
Under a non-binding Memorandum of Understanding (MOU), the companies intend to evaluate the co-location of a commercial Aqua Metals lithium-ion battery recycling facility adjacent to ABF’s planned battery cell manufacturing operations in Tucson, Arizona. The proposed collaboration would enable Aqua Metals to recycle lithium-ion battery manufacturing scrap generated by ABF and return battery-grade lithium carbonate for reuse in U.S. based battery production.
The collaboration is designed to address a key challenge facing the U.S. battery industry: how to economically process battery materials domestically rather than exporting manufacturing scrap and black mass to overseas markets, primarily in Asia, for conventional hydrometallurgical processing. By integrating recycling directly with battery manufacturing, the companies aim to improve cost competitiveness, reduce logistics complexity, and strengthen domestic supply chain resilience.
Aqua Metals’ proprietary AquaRefining™ technology replaces high-temperature furnaces and chemical-intensive hydrometallurgical processes with an electricity-powered, closed-loop system. This approach is designed to operate more efficiently in the U.S. regulatory and labor environment while creating safer, higher-quality manufacturing jobs and producing battery-grade materials suitable for direct reuse.
“This strategic collaboration reflects our belief that domestic battery recycling must be economically viable, not just environmentally preferable,” said Steve Cotton, President and CEO of Aqua Metals. “By working alongside American Battery Factory, we are evaluating a model that would keep valuable materials in circulation, support U.S. 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.”
American Battery Factory is developing large-scale LFP battery cell manufacturing capacity in the United States, supported by federal and state initiatives aimed at expanding domestic battery production. Through the contemplated collaboration, Aqua Metals would develop a co-located recycling facility that would process manufacturing scrap using AquaRefining™ and supply battery-grade lithium carbonate back into ABF’s supply chain or to designated downstream partners.
“This collaboration is intended to reflect the next evolution of battery manufacturing in the United States,” said John S. Kem, President of American Battery Factory. “Integrating nearby-adjacent recycling directly into the production ecosystem supports our commitment to domestic sourcing, supply security, and long-term competitiveness.”
The MOU also outlines plans to evaluate a commercial-scale recycling facility capable of processing up to 10,000 metric tons of lithium-ion battery materials annually, including both manufacturing scrap and third-party feedstock. Co-locating recycling and manufacturing operations is expected to improve logistics efficiency, reduce transportation costs, and enhance overall operational economics.
The companies also expect to evaluate how domestic manufacturing incentives, including the 45X Advanced Manufacturing Production Tax Credit, could further support the economic competitiveness of U.S.-based battery materials production relative to foreign supply chains.
Any definitive agreements would be subject to financing, permitting, and regulatory approvals, with a targeted start of commercial operations in 2028.
For Aqua Metals, the collaboration builds on recent progress advancing its lithium-ion battery recycling strategy, including pilot-scale operations producing battery-grade materials, a growing portfolio of strategic partnerships across the battery materials ecosystem, and ongoing bench-scale testing and partnership development focused on rare earth element recovery. Through a closed-loop, made-in-USA recycling and refining platform, Aqua Metals is advancing the commercialization of critical battery materials including lithium, nickel, cobalt, copper, and manganese, while progressing rare earth recovery at the laboratory and bench scale. Together, these capabilities position the Company as an innovative leader in developing economically competitive, domestic recycling solutions aligned with emerging federal initiatives supporting secure processing, storage, and strategic stockpiling of critical minerals.
About Aqua Metals
Aqua Metals (NASDAQ: AQMS) is revolutionizing metals recycling with its proprietary AquaRefining™ technology, delivering high-purity, low-carbon battery materials to meet the growing demand for sustainable energy storage. The Company’s innovation-driven approach reduces emissions, eliminates waste streams, and supports the establishment of a circular supply chain for critical minerals essential to electric vehicles and grid storage. For more information, visit www.aquametals.com
About American Battery Factory
American Battery Factory Inc., a lithium iron phosphate (LFP) battery cell manufacturer, is dedicated to making an American-made supply of cells for energy storage, at scale, with the very latest equipment technology and enabling a domestic battery material-supply chain for LFP battery cells. Along with creating domestic manufacturing jobs, ABF cells are critical for reliable, abundant, and affordable power in the USA for energy grid and national security applications. For more information on American Battery Factory, please visit americanbatteryfactory.com.
Safe Harbor
This press release contains forward-looking statements concerning Aqua Metals, Inc. Forward-looking statements include, but are not limited to, our plans, objectives, expectations and intentions, and other statements that contain words such as "expects," "contemplates," "anticipates," "plans," "intends," "believes," "estimates," "potential" and variations of such words or similar expressions that convey the uncertainty of future events or outcomes, or that do not relate to historical matters. The forward-looking statements in this press release include our ability to enter into a definitive agreement with American Battery Factory, our acquisition of the capital required to design and construct our co-located recycling facility and American Battery Factory’s ability to construct its manufacturing facility to be co-located with our recycling facility. Those forward-looking statements involve known and unknown risks, uncertainties, and other factors that could cause actual results to differ materially. Among those factors are: (1) the risk that we may not be able to enter into a definitive agreement with American Battery Factory, (2) the risk that we may not be able to acquire the necessary capital to construct our recycling facility, (3) the risk that American Battery Factory may not be able to construct its manufacturing facility, (4) the risk that we may not achieve the expected benefits from such relationship, (5) the risk that we may not be able to obtain the additional capital necessary to expand our recycling facilities or even sustain our current level of operations; and (5) those other risks disclosed in the section "Risk Factors" included in our Annual Report on Form 10-K filed on March 31, 2025. Aqua Metals cautions readers not to place undue reliance on any forward-looking statements. The Company does not undertake and specifically disclaims any obligation to update or revise such statements to reflect new circumstances or unanticipated events as they occur, except as required by law.
Contacts
For Media and Investor Inquiries: aquametals@icrinc.com
