What's Happening?
Aqua Metals, Inc., a leader in clean metals recycling, and American Battery Factory (ABF), a lithium iron phosphate battery cell manufacturer, have announced a strategic collaboration aimed at advancing a domestic circular supply chain for battery materials. The partnership involves a non-binding Memorandum of Understanding to explore the co-location of a commercial Aqua Metals lithium-ion battery recycling facility next to ABF's planned manufacturing operations in Tucson, Arizona. This initiative seeks to recycle lithium-ion battery manufacturing scrap and return battery-grade lithium carbonate for reuse in U.S. battery production. The collaboration addresses the challenge of economically processing battery materials domestically, reducing
reliance on overseas processing, primarily in Asia. Aqua Metals' AquaRefining technology, which uses an electricity-powered, closed-loop system, is central to this effort, promising to improve cost competitiveness and supply chain resilience.
Why It's Important?
This collaboration is significant as it represents a shift towards strengthening the U.S. battery industry's supply chain by keeping valuable materials within the country. By integrating recycling with manufacturing, the partnership aims to reduce logistics complexity and enhance the economic viability of domestic battery recycling. This move supports U.S. manufacturing jobs and aligns with federal and state initiatives to expand domestic battery production. The collaboration could also leverage domestic manufacturing incentives, such as the 45X Advanced Manufacturing Production Tax Credit, to further enhance the competitiveness of U.S.-based battery materials production. This initiative is crucial for reducing dependency on foreign supply chains and ensuring a stable supply of critical materials for the growing electric vehicle and energy storage markets.
What's Next?
The companies plan to evaluate a commercial-scale recycling facility capable of processing up to 10,000 metric tons of lithium-ion battery materials annually. The next steps include securing financing, obtaining necessary permits, and regulatory approvals, with a target to commence commercial operations by 2028. The collaboration will also explore how domestic manufacturing incentives can support the economic competitiveness of the project. If successful, this model could serve as a blueprint for future domestic recycling and manufacturing collaborations, potentially influencing policy and industry standards in the U.S. battery sector.
