August 16, 2023: Taiwanese lead refiner ACME Metal Enterprise has completed initial testing of equipment supplied by Aqua Metals — and told Batteries International on August 14 it will now also test technology from ACE Green Recycling.

An ACME spokesperson told Batteries International on August 14 the project with AQMS is being carried out in phases.

Verification of performance parameters of AQMS’ electroplating modules, underway since the fourth quarter of 2022, is now completed.

ACME is now conducting continuous runs using electrolytes made by AQMS, while work is underway to finalize the design of the remainder of the plant for activities including de-sulfurization and leaching.

The main purpose of testing out ACE Green’s technology is to treat lead oxide drosses from ACME’s refinery.

The spokesperson did not expand on why it was also working with ACE, but said a “clearer picture” of all activities could be available as soon as the fourth quarter of this year.

Market analysis

The ACME announcement came as a critical market analysis published by Chimerix Research on August 16 said it doubted AQMS’ ability to deploy and scale its recycling plants within the proposed timeline.

“The company’s history of delays, lack of revenue, and shareholder lawsuits raises concerns about its ability to deliver on its promises,” it said.

A recently closed AQMS stock offering showed investors are still supporting the company — but Chimerix said: “We think that this offering is only buying another year of liquidity with little impact on the operational and scaling projects…

“Without breakthrough developments, the company will be forced at new expensive and very dilutive equity raises in the next 12 months.”

That said, according to ChartMill, a stock screening and analysis platform, “AQMS was analysed by eight analysts. The buy consensus is at 85, so analysts seem to be very confident about AQMS.”

Public offering

AQMS had not responded to a request for comment from Batteries International as this article went to press.

However, AQMS chief financial officer Judd Merrill, in a second-quarter earnings call on August 10, said that the company’s net loss for the period as of June 30 was $4.8 million or a negative $0.06 per basic and diluted share, compared to a net loss of $3.2 million or a negative $0.04 per basic and diluted share for the same period in 2022.

There was no revenue, but AQMS recorded “modest service fees” under a development agreement.

Judd said the company completed a public offering of about 18 million shares on July 21 resulting in $20 million of gross proceeds.

AQMS believes that raise, together with $5 million from Korean firm Yulho, will provide sufficient capital to fund its proposed operating plan through 2024, Judd said.

ACME’s decision to use AQMS’ AquaRefining technology, at its  facility in Keelung, started with the signing of a letter of intent in 2021.

The companies said they intended to develop a process to convert the briquettes formed by AquaRefining directly into battery-grade lead oxide with the use of a ball mill.

Lithium shift

AQMS announced it was expanding into lithium ion battery recycling in February 2021.

Last January, the firm said it had recovered its first battery metal from spent lithium-ion batteries at production scale by electroplating.

ACE Green unveiled plans last year to build and operate what it claimed would be an “emission-free” lead and lithium batteries recycling facility in Texas.

The firm has since signed several deals — most recently an equipment supply and licensing agreement with Hakurnas Lead Works to set up battery recycling facilities in Israel and Romania.