Aqua Metals inks supply agreement with 6K Energy

Reno, Nevada-based lithium-ion battery (LIB) recycler Aqua Metals and North Andover, Massachusetts-based LIB materials producer 6K Energy have signed a strategic supply agreement in the effort to establish a sustainable circular supply chain in North America for the critical minerals needed for manufacturing LIBs.

Per the agreement, Aqua Metals will deliver recycled battery materials from its Sierra ARC facility in Reno for 6K Energy to manufacture cathode active material (CAM) with a low carbon footprint at its PluCAM facility in Jackson, Tennessee.

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In a news release, the companies say the supply agreement marks a pioneering step in building North American battery manufacturing capacity that will qualify for domestic content incentives under the Inflation Reduction Act, aligning with the U.S.’ efforts to expand manufacturing capabilities, establish resilient supply chains and reduce carbon emissions. According to the companies, based on today’s metals prices, the materials supplied under this offtake agreement have an estimated value of more than $50 million annually once 6K Energy’s PlusCAM and Aqua Metals’ Sierra ARC facilities reach capacity.

“Our strategic agreement with 6K Energy represents a pivotal moment in our mission to build a more sustainable battery ecosystem from the ground up here in North America,” Aqua Metals President and CEO Steve Cotton says. “Together, we are demonstrating the viability and economic benefits of closed-loop recycling for critical battery metals and laying the foundation for the U.S. to claim leadership in this rapidly accelerating global industry.”

Starting this year, Aqua Metals will supply 6K Energy with recycled critical minerals, ramping up to provide 30 percent of the nickel and lithium carbonate needed for 6K Energy’s PlusCAM facility. The companies say the commitment to use up to 30 percent recycled feedstock presents a unique value proposition, allowing electric vehicle (EV) and LIB manufacturers to benefit from low-carbon, low-cost and domestically produced cathode materials for the first time.

“This agreement extends beyond a supply contract; it’s a partnership aimed at redefining industry standards for environmental responsibility and cost-efficiency in battery material production,” says 6K Energy President Sam Trinch. “6K Energy will be the first in North America to incorporate large quantities of sustainably recycled metals into our advanced battery materials using our low-cost, low-carbon footprint CAM production technology.”

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The companies note their utilization of technologies that can be powered entirely by clean energy have a clear pathway to net-zero operations in the future. They say they both can eliminate the production of thousands of tons of sodium sulfate scrap through their patented processes—a byproduct that traditional cathode production and recycling methods generate in significant quantities.

In the news release, the companies say, “By leveraging their unique, clean technologies, Aqua Metals and 6K Energy are establishing a new standard for the industry, demonstrating that a truly sustainable closed-loop process for battery minerals is a vision for the future that is being built today.”