Aqua Metals forms recycling supply partnership with Interstate Batteries
Published with kind permission of Metal Bulletin.
Aqua Metals has formed a strategic partnership with Interstate Batteries, which includes the supply of over one million automotive and other lead-acid batteries plus a $10 million investment into the California, USA-based company.
The batteries will initially be recycled at Aqua Metals’ AquaRefinery, the first ever non-polluting lead recycling facility which is set to open in July. The US firm has developed new recycling technology to eliminate the inefficiency, costs and toxic waste associated with conventional smelter-based recycling of lead acid batteries.
AquaRefinery will be located in Nevada’s Tahoe-Reno Industrial Complex and will have an initial production of 80 tonnes per day of mixed primary and secondary lead.
“As we grow, we are able to create a more sustainable ecosystem for lead as a power source,” Dr. Stephen Clarke, chairman and ceo of Aqua Metals, said.
Interstate Batteries’ $10 million strategic investment into Aqua Metals will be in the form of common stock, a fixed-price note that converts into common stock, and two cash warrants to purchase common stock over the next three years.
With a nationwide network of more than 200,000 dealers returning battery cores, Interstate Batteries recycled more than 24.9 million automotive batteries in 2015, which is more than it sells.
In the automotive industry alone, Interstate Batteries sells more than 17 million automotive batteries annually in addition to powering items including marine and heavy equipment, golf carts, lawn and garden care equipment, data centre cloud infrastructure and security systems.
“Our focus is on the future of our industry and continued growth,” said Scott Miller, president and ceo of Interstate Batteries. “Aqua Metals’ breakthrough technology is a promising new way for recycling lead-acid batteries,” Miller added.
Concurrent with the agreements with Interstate Batteries, Aqua Metals signed definitive agreements with various institutional and individual accredited investors to raise additional gross proceeds of approximately $5.1 million in a private placement of common stock.
National Securities Corporation, a wholly owned subsidiary of National Holdings, Inc, acted as a sole placement agent for the additional $5.1 million investment.
The Liquid Venture Partners group at National Securities Corporation was primarily responsible for the sourcing and execution of that portion of the investment.
All of these agreements are expected to close on or before May 23, subject to customary closing conditions.