Aqua Metals, Inc. · NASDAQ:AQMS
Aqua Metals — Q3 2023 Earnings Presentation
28 slides from Aqua Metals's earnings presentation, Nov 8, 2023
Slide 1: Leading a Revolution in Clean Metals & Battery Recycling
LEADING A REVOLUTION IN CLEAN METALS & BATTERY RECYCLING NASDAQ: AQMS November 2023 Copyright © 2023 Aqua Metals, Inc. All Rights Reserved. 1
Slide 2: Disclaimer
Disclaimer This presentation contains forward-looking statements concerning Aqua Metals, Inc. Forward-looking statements include, but are not limited to, our plans, objectives, expectations and intentions and other statements that contain words such as "expects," "contemplates," "anticipates," "plan
Slide 3: Investor Highlights
Investor Highlights Patented recycling solution that has the potential to deliver the best economics and the lowest environmental impact Surging demand Innovative solution with operational pilot proving EVs, mobile devices, solar storage, everything technology, and plans for commercial-scale campus
Slide 4: The World Is Powered By Batteries
The World Is Powered By Batteries Lead-Acid • Most of LABs are used in EVs/cars, forklifts, cranes, data centers and e-bikes Batteries • LAB market is about $65B globally (LAB) • 95%+ of LABs are recycled, but at massive environmental cost through smelting, one of the top polluting industries in the
Slide 5: Expensive, Scarce Components in Li-ion Batteries
Expensive, Scarce Components in Li-ion Batteries As demand for EV batteries grows, countries are racing to build domestic supply chains 99% of raw and component materials for LiBs are produced outside the U.S. Mineral Pricing and demand growth1 Supply shortfall risks Geopolitical challenges COBALT •
Slide 6: The Next Generation Recycling Process
The Next Generation Recycling Process Replaces furnaces and heavy chemical use with 100% Recovers the high-value metals electricity-powered and closed- lost in smelting (like lithium and loop recycling, creating manganese), and produces fundamentally non-polluting, high purity products cost-efficien
Slide 7: Current LiB Recycling Technology Comparison
Current LiB Recycling Technology Comparison PYRO Smelting approach is currently a multistep pyro. Emissions will be unsustainable long term as recycling volume increases. Cathode Co X Li Ni Cu X Mn Precursors • Significant carbon pollution, toxic emissions Batteries Furnace Furnace Furnace • Produce
Slide 8: Game Changing Environmental Performance
Game Changing Environmental Performance Electrifying lithium battery recycling to reduce emissions and waste • Aqua Metals’ Li AquaRefining technology uses dramatically less energy – powered by electricity, instead of fossil fuels • Much lower emissions per tonne recycled than pyro- and hydrometallu
Slide 9: Pilot Recycling Operations Lifecycle Analysis
Pilot Recycling Operations Lifecycle Analysis Independent Technical Report conducted by global engineering firm ICF International including Lifecycle Analysis (LCA) of Aqua Metals’ AquaRefining Pilot Technical Report Conclusions: • Today, AquaRefining shows 83% reduction in carbon emissions compared
Slide 10: Competitive Landscape Lithium Recycling
Competitive Landscape Lithium Recycling AquaRefining ENVIRONMENTAL Pyro (Smelting) ECONOMICS Copyright © 2023 Aqua Metals, Inc. All Rights Reserved. 10
Slide 11: Li AquaRefining: First Sustainable LiB Recycling
Li AquaRefining: First Sustainable LiB Recycling Li AquaRefining™ recovers critical materials using electricity in a closed-loop system • 99% less CO2 than pyro or mining and no polluting furnaces • 95% less chemicals than hydro, regenerative process lowers costs and emissions • 95%+ recovery rate o
Slide 12: Aqua Metals' Commercial-Scale Timeline
Aqua Metals’ Commercial-Scale Timeline Complete Complete NRE w/ 6K Buildout & Up-fitting Ramping Operations Energy on Battery Commercial-scale to Consistent Metals Conversion Facility Revenue from Recycled Material Q4 2023 H1 2024 2025 Q4 2023 Q1 2024 H2 2024 Bring Pilot Finalize First Commissioning
Slide 13: Li AquaRefining Pilot Plant Operational
Li AquaRefining Pilot Plant Operational Only sustainable lithium battery recycler with operational Pilot in North America Proven ability to recover valuable materials from black mass, samples being distributed Only facility natively producing lithium hydroxide or carbonate directly from black mass -
Slide 14: Aqua Metals' First AquaRefining Campus
Aqua Metals’ First AquaRefining Campus Tahoe-Reno Industrial Center 10,000 tonnes-per-year target capacity Full campus operational by 2028 14 Copyright © 2023 Aqua Metals, Inc. All Rights Reserved.
Slide 15: Reno, NV – Phase One (Coming 2024)
Reno, NV – Phase One (Coming 2024) 3,000 tonnes-per-year capacity 15 Copyright © 2023 Aqua Metals, Inc. All Rights Reserved.
Slide 16: Aqua Metals Converting Black Mass into Revenue
Aqua Metals Converting Black Mass into Revenue TAM: $150B based on 7.5M/MT of black mass x $20,000 of extractable value LiB Recycling – An Exponentially Growing Market Opportunity • LiB recycling predicted to hit $6.55B by 2028 with 18.5% CAGR vs. $1.7B in 2020 (Fortune Business Insights) • 2025-203
Slide 17: Circular Supply Chain: Strategic Partnerships
Circular Supply Chain: Strategic Partnerships Domestic Battery Supply Chain Off-Takers • 3,000+ tonnes of black mass already secured to reach and operate at commercial scale • Negotiating off-take agreements with domestic battery & EV companies • Completing first licensing agreement for AquaRefining
Slide 18: 6K Energy & Aqua Metals Partnership
6K Energy & Aqua Metals Partnership Develop low-carbon battery material conversion technology and establish long-term supply agreement for 6K Energy’s 13,000tpa PlusCAM™ factory Highlights: About 6K: • Non-recurring engineering agreement funded by • $50M U.S. Dept. of Energy (DOE) grant & other fund
Slide 19: Yulho & Aqua Metals Partnership
Yulho & Aqua Metals Partnership South Korea-based Yulho has become a strategic investor in Aqua Metals and will be licensing sustainable AquaRefining technology for use in their own facilities in Asia (and beyond) About Partnership: Highlights: ❑ Yulho invested $5M in Aqua Metals to help accelerate
Slide 20: Financials
Financials As of September 30, 2023 Additional Sources of Capital USDA non-dilutive loan Cash and cash equivalents $25.6M $25.0M targeted financing – potential Other non-dilutive loan Working capital $23.1M $25.0M targeted financing – potential U.S. Government grants – Quarterly burn rate (approx.)
Slide 21: Management
Management Steve Cotton Judd Merrill Ben Taecker Dave McMurtry Chief Executive Officer, Chief Financial Officer Chief Engineering Chief Business President and Operating Officer Officer Rejoined Aqua Metals in, 2018; Joined Aqua Metals in 2018 from 20+ years of experience in Experienced Silicon Valle
Slide 22: Investor Highlights
Investor Highlights Patented recycling solution that has the potential to deliver the best economics and the lowest environmental impact Surging demand Innovative solution with operational pilot proving EVs, mobile devices, solar storage, everything technology, and plans for commercial-scale campus
Slide 23: NASDAQ: AQMS
NASDAQ: AQMS WWW.AQUAMETALS.COM Copyright © 2022 Aqua Metals, Inc. All Rights Reserved. 23
Slide 24: Appendix
Appendix 24
Slide 25: Financial Overview
FINANCIAL OVERVIEW Copyright © 2022 Aqua Metals, Inc. All Rights Reserved.2 25
Slide 26: Balance Sheets
AQUA METALS, INC. Condensed Consolidated Balance Sheets - Unaudited (in thousands, except share and per share amounts) September 30, December 31, 2023 2022 ASSETS Current assets Cash and cash equivalents $ 25,598 $ 7,082 Accounts receivable 76 12 Lease receivable — 15,527 Inventory 891 278 Consolida
Slide 27: Statement of Operations
AQUA METALS, INC. Condensed Consolidated Statements of Operations - Unaudited (in thousands, except share and per share amounts) Three Months Ended Nine Months Ended Consolidated September 30, September 30, 2023 2022 2023 2022 Statement of Product sales $ 25 $ — $ 25 $ 4 Operations Operating cost an
Slide 28: Statement of Cash Flows
AQUA METALS, INC. Condensed Consolidated Statements of Cash Flows - Unaudited (in thousands) Nine Months Ended September 30, 2023 2022 Cash flows from operating activities: Net loss $ (13,912 ) $ (11,461 ) Reconciliation of net loss to net cash used in operating activities Depreciation and ROU asset