Aqua Metals signs supply agreement with Interstate Batteries

Replacement lead-acid battery distributor and retailer Interstate Batteries, Dallas, has signed an agreement with Aqua Metals Inc. to supply more than 1 million automotive and other lead-acid batteries as feedstock for Aqua Metals’ AquaRefineries recycling process.

Aqua Metals Inc., based in Alameda, California, is commercializing an electrochemical lead recycling technology called AquaRefining at a facility in Nevada’s Tahoe-Reno Industrial Complex that is set to open in July 2016.

As part of the agreement, Interstate Batteries also will also make an investment of approximately $10 million into Aqua Metals, according to an Aqua Metals news release.

With a nationwide network of more than 200,000 dealers returning battery cores, Interstate Batteries collected for recycling nearly 25 million automotive batteries in 2015, which is more than it sells. Interstate Batteries sells more than 17 million automotive batteries annually and also sells batteries into other markets, including the marine, heavy equipment, golf cart, lawn and garden care equipment, data center cloud infrastructure and security system markets.

“Interstate Batteries seeks out innovation, pursues opportunities and invests in the technology we need to succeed not just today, but also tomorrow,” says Scott Miller, president and CEO of Interstate Batteries. “Our focus is on the future of our industry and continued growth. Aqua Metals’ breakthrough technology is a promising new way for recycling lead-acid batteries.”

Aqua Metals describes its patent pending AquaRefining process as “a closed-loop, room temperature, water-based recycling method that is fundamentally nonpolluting, yet able to yield nearly 100 percent lead recovery.”

Says Dr. Stephen Clarke, chairman and CEO of Aqua Metals, “With its forward-thinking environmental goals, broad distribution network and strong brand name, Interstate Batteries is an ideal partner for us as we scale our business. We look forward to growing our partnership with Interstate Batteries."

The $10 million investment by Interstate Batteries 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.