Aqua Metals Inc (NASDAQ:AQMS) reported progress with the development of the company’s first commercial-scale black mass recycling facility, the Sierra ARC, during the second quarter.
Notable work included the completion of a 5-megawatt upgrade of utility power, installation of switchgear, steel superstructures, equipment platform with two overhead cranes and the delivery of equipment, including tanks, evaporation systems, and control systems.
The pilot facility has been operating 24x5, which the company said highlighted the scalability and efficiency of its AquaRefining technology.
Aqua Metals believes these operations provide “critical process validation data” for due diligence conducted by financing counterparties.
It told investors that it will need to raise additional financing to complete the Sierra ARC.
In May 2024, Aqua Metals announced a $33 million secured credit facility term sheet with a major privately held company, but the lender suspended activity due to high interest rates and falling lithium-ion mineral prices, raising debt service concerns after two months of due diligence. The company hopes to resume negotiations if conditions improve.
Management is also actively pursuing funding through other engagements and funding counterparties, including debt, project finance, joint venture and strategic investment options.
Once financing has been secured, the company said it is positioned to move quickly to complete the remaining mechanical, electrical, plumbing and process equipment installations within two to three quarters and commence commissioning and scaling at the Sierra ARC.
Aqua Metals is reinventing metals recycling with its patented AquaRefining technology.