Aqua Metals secures tax abatement for Nevada expansion

Lithium-ion battery recycler Aqua Metals Inc., Reno, Nevada, has received an economic incentive package of approximately $2.2 million from the Nevada Governor’s Office of Economic Development (GOED) which will assist the company in its Nevada expansion.

Pursuant to the terms of the abatement, the support encompasses partial tax relief over a 10-year period toward about $17 million worth of equipment and $18 million worth of building and land improvements planned for the first phase of its Sierra AquaRefining Campus (ARC).

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According to GOED, the total economic impact of Aqua Metals’ investments and job creation to the state of Nevada is projected to total more than $392 million over the next 10 years, defined as benefits the company and its operations will have on the community and state economy measured by total number of jobs, payroll and created output. The company says the investments also are projected to generate around $4.6 million of direct and indirect net new tax revenues for the state.

“We are immensely grateful for the programs from the state of Nevada via the Governor’s Office of Economic Development that support new and expanding companies and appreciate the strong affirmation of our innovative approach to sustainable recycling,” Aqua Metals President and CEO Steve Cotton says. “This economic incentive will bolster our efforts at the Sierra ARC, further enabling us to continue creating good-paying jobs and contribute even more significantly to Nevada’s growing clean energy sector.”

Aqua Metals says it has made significant progress in advancing its Sierra ARC project, having initiated the construction and upfitting of its 5-acre recycling campus in 2023. The company says the focus on phase one of the project is bolstered by the tax abatement aimed at accelerating the facility’s development.

Recent progress at the campus includes the completion of cement pouring for new flooring, the installation of steel framework for the internal superstructure and upgrades to electrical and mechanical systems in the building in preparation for equipment installation. The company says this progress paves the way for black mass to be introduced into its proprietary AquaRefining system in the first half of 2024, with phase one of the commercial-scale recycling facility on track, subject to additional financing, to reach full production capacity of 3,000 tons per year in 2025. The company currently is operating its Li AquaRefining pilot facility 24 hours per day, five days per week.

RELATED: Aqua Metals finishes Li AquaRefining recycling pilot

Aqua Metals was supported in completing the application process by the Economic Development Authority of Western Nevada (EDAWN).

“The approval to move forward with the project in the Tahoe Reno Industrial Center is a significant win for Nevada, helping propel it to the forefront in the race to secure major clean energy projects of international significance,” says Nancy McCormick, senior vice president of business retention, expansion and workforce development for EDAWN. “Aqua Metals’ vision for the sustainable recycling of critical battery minerals aligns perfectly with Nevada’s aspirations, creating an unparalleled opportunity for the state to expand and solidify its leadership in the emerging global lithium battery economy.”