Advancing Toward Commercial Deployment
During the first quarter,
The Company is actively evaluating a short list of
The Company’s phased development approach remains focused on capital efficiency, prioritizing engineering, permitting, and commercial alignment ahead of larger-scale construction expenditures and project financing activities.
Importantly,
With lithium market conditions and broader battery materials markets improving in 2026 alongside increasing domestic critical minerals supply chain priorities,
"In the first quarter, our team continued to build on the momentum established throughout 2025, advancing key technical and commercial initiatives that further demonstrate the differentiated value of the AquaRefining™ platform," said
Strategic Initiatives and Near-Term Revenue Positioning
The Company's previously announced commercial partnerships remain active, including the multi-year supply agreement with 6K Energy, the non-binding LOI with Westwin Elements, and the MOUs with Impossible Metals, MOBY Robotics, and
Update on Energy Storage Expansion Strategy
As part of this effort, the Company provided an update on its previously announced non-binding term sheet to acquire Lion Energy.
Following detailed due diligence,
“We continue to see long-term strategic value in integrating energy storage solutions with our domestic battery materials platform, but our discipline around capital structure and shareholder value remains paramount,” said Cotton. “Based on updated information developed through diligence, the previously contemplated transaction structure is no longer aligned with our objectives.”
The Company is actively evaluating alternative transaction structures that may enable a more capital-efficient approach to integrating selected energy storage assets.
There can be no assurance that any alternative transaction or arrangement will be agreed to or consummated, or as to the timing, structure or terms of any such outcome.
Innovation Center Driving Technical Validation and Expansion
Aqua Metals’ Innovation Center and demonstration plant continue to serve as the technical foundation for commercialization, achieving over 5,000 cumulative operating hours across extended multi-feedstock operating campaigns.
During the quarter, the Company achieved several notable technical milestones:
- Battery-Grade Lithium Carbonate: Successfully produced battery-grade lithium carbonate from multiple recycled feedstocks, including both NMC and LFP materials, with independent validation confirming industry-grade specifications.
- High-Purity Manganese Sulfate: Produced manganese sulfate at approximately 99.8% purity, demonstrating the potential applicability of AquaRefining™ across additional battery precursor and critical minerals markets, including materials derived from undersea nodules.
- Iron Phosphate Recovery Advancements: Continued process development for iron phosphate recovery from LFP materials, improving efficiency and product quality across bench and pilot-scale work.
Expanding Platform Scope Across Large and Growing Markets
While lithium-ion battery recycling remains the Company’s primary focus,
Supporting a Domestic Battery Supply Chain
As battery demand continues to grow across energy storage, emerging power-intensive applications, and electric vehicles,
Outlook
Looking ahead, Aqua Metals’ priorities for the remainder of 2026 include advancing site selection, progressing engineering activities, evaluating strategic opportunities, and continuing technical validation.
“We believe AquaRefining™ has the potential to become an important part of a more domestic, efficient, and resilient battery materials supply chain as the market continues to scale. Our process eliminates the waste streams and chemical costs that make traditional recycling uncompetitive in
Conference Call and Webcast
The live conference call webcast and replay can be accessed from the investor relations section of the Company’s website at https://ir.aquametals.com/.
About
Safe Harbor
This press release contains forward-looking statements concerning
Contacts
For Media and Investor Inquiries: aquametals@icrinc.com
Condensed Consolidated Balance Sheets - Unaudited (in thousands, except share and per share amounts) | ||||||||
| ASSETS | ||||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ | 6,816 | $ | 10,810 | ||||
| Note receivable - LION ENERGY, net | 3,663 | 2,069 | ||||||
| Interest receivable - LION ENERGY | 60 | — | ||||||
| Inventory | 244 | 244 | ||||||
| Prepaid expenses and other current assets | 313 | 282 | ||||||
| Total current assets | 11,096 | 13,405 | ||||||
| Non-current assets | ||||||||
| Property and equipment, net | 5,566 | 5,763 | ||||||
| Intellectual property, net | 61 | 76 | ||||||
| Other assets | 397 | 462 | ||||||
| Total non-current assets | 6,024 | 6,301 | ||||||
| Total assets | $ | 17,120 | $ | 19,706 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Current liabilities | ||||||||
| Accounts payable | $ | 839 | $ | 547 | ||||
| Accrued expenses | 2,457 | 3,570 | ||||||
| Lease liability, current portion | 321 | 311 | ||||||
| Total current liabilities | 3,617 | 4,428 | ||||||
| Non-current liabilities | ||||||||
| Lease liability, non-current portion | 197 | 281 | ||||||
| Warrant liability | 180 | 227 | ||||||
| Total liabilities | 3,994 | 4,936 | ||||||
| Commitments and contingencies (see Note 13) | ||||||||
| Stockholders’ equity | ||||||||
| Common stock; | 3 | 3 | ||||||
| Additional paid-in capital | 287,525 | 285,212 | ||||||
| Accumulated deficit | (274,370 | ) | (270,416 | ) | ||||
| (32 | ) | (29 | ) | |||||
| Total stockholders’ equity | 13,126 | 14,770 | ||||||
| Total liabilities and stockholders’ equity | $ | 17,120 | $ | 19,706 | ||||
Condensed Consolidated Statements of Operations - Unaudited (in thousands, except share and per share amounts) | ||||||||
| Three Months Ended March 31, | ||||||||
| 2026 | 2025 | |||||||
| Operating cost and expense | ||||||||
| Plant operations | $ | 501 | $ | 724 | ||||
| Research and development cost | 282 | 336 | ||||||
| Impairment and loss on disposal of property, plant and equipment | — | 5,247 | ||||||
| Provision for credit losses | 437 | — | ||||||
| General and administrative expense | 2,920 | 2,376 | ||||||
| Total operating expense | 4,140 | 8,683 | ||||||
| Loss from operations | (4,140 | ) | (8,683 | ) | ||||
| Other income and (expense) | ||||||||
| Interest expense | (8 | ) | (403 | ) | ||||
| Interest and other income | 149 | 280 | ||||||
| Change in fair value of warrant liability | 47 | 491 | ||||||
| Total other income, net | 188 | 368 | ||||||
| Loss before income tax expense | (3,952 | ) | (8,315 | ) | ||||
| Income tax expense | 2 | — | ||||||
| Net loss | (3,954 | ) | (8,315 | ) | ||||
| Weighted average shares outstanding, basic and diluted | 3,236,557 | 809,571 | ||||||
| Basic and diluted net loss per share | $ | (1.22 | ) | $ | (10.27 | ) | ||
