Nth Cycle receives $7.2M tax credit allocation

Nth Cycle, a Beverly, Massachusetts-based critical metal refining company, has been awarded a $7.2 million tax credit allocation under the Inflation Reduction Act’s Advanced Energy Project Tax Credit (48C) program, administered by the U.S. Department of Energy (DOE).

Nth Cycle will use the tax credit to help establish a large-scale production of mixed hydroxide precipitate (MHP) at the company's facility in Fairfield, Ohio. Nth Cycle's MHP yields purity of nickel and cobalt hydroxide, which it says helps battery companies comply with the Inflation Reduction Act’s domestic materials requirement for electric vehicles (EVs).

According to Nth Cycle, its refining process could reduce the associated production of greenhouse gasses by more than 90 percent versus traditional mining processes, while fulfilling the sourcing requirements of the Inflation Reduction Act for domestic battery manufacturing. 

RELATED: Nth Cycle receives funding boost | Nth Cycle opens southwest Ohio nickel, cobalt production facility

“As global dependence on essential metals for an electrified and secure economy grows, we must ensure that the extraction of these materials aligns with the clean, secure and efficient future we envision,” Nth Cycle CEO and co-founder Megan O’Connor says. “A streamlined, sustainable and domestic cost-effective supply chain for nickel and cobalt products not only expedites our journey towards that future but also positions the U.S. as a frontrunner in this global movement. Support from the DOE brings us one step closer to realizing our goal of reshaping the metal refining industry while creating sustainable, high-quality jobs in communities like Fairfield.”

The 48C program, a collaborative effort between DOE, the Department of the Treasury and the Internal Revenue Service (IRS), is distributing $4 billion in tax credits to more than 100 projects across 35 states. The projects aim to accelerate domestic clean energy manufacturing and reduce greenhouse gas emissions at industrial facilities.