Aqua Metals, Inc. · NASDAQ:AQMS
Aqua Metals — Q1 2024 Earnings Presentation
34 slides from Aqua Metals's earnings presentation, May 15, 2024
Slide 1: Leading a Revolution in Clean Metals & Battery Recycling
LEADING A REVOLUTION IN CLEAN METALS & BATTERY RECYCLING NASDAQ: AQMS May 2024 Copyright © 2024 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: Market Positioning and Strength
Market Positioning and Strength 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-s
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: Rapid Expansion of North American Battery Industry
Rapid Expansion of North American Battery Industry By 2030, the US alone is projected to have nearly 1 terawatt hour of lithium battery cell manufacturing • $92B total investment and counting • 80+ processing & manufacturing facilities Supply chain for lithium batteries is growing rapidly throughout
Slide 6: End-of-Life + Manufacturing Scrap Growing Rapidly
End-of-Life + Manufacturing Scrap Growing Rapidly Data from Boston Consulting Group Copyright © 2024 Aqua Metals, Inc. All Rights Reserved. 6
Slide 7: US Manufacturing Scrap > Announced Recycling Capacity
US Manufacturing Scrap > Announced Recycling Capacity • Rapidly expanding manufacturing increases scrap supply • Scrap is high purity = more revenue per tonne • The combined announced recycling capacity in the US will be less than expected scrap alone – not even counting end-of-life • Only Aqua Meta
Slide 8: 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 9: 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 10: Current Recycling Outlook Not Sustainable
Current Recycling Outlook Not Sustainable Pyrometallurgy • Energy intensive, fossil-fuel powered • Furnaces incinerate & oxidize valuable materials (even electric) • Creates slag and alloys needing further refining • Requires additional steps to salvage lithium, manganese, graphite Smelting process
Slide 11: 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 12: 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 of
Slide 13: 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 14: Competitive Landscape Lithium Recycling
Competitive Landscape Lithium Recycling AquaRefining ENVIRONMENTAL Pyro (Smelting) ECONOMICS Copyright © 2024 Aqua Metals, Inc. All Rights Reserved. 14
Slide 15: Li AquaRefining Pilot Recycling Facility Update
Li AquaRefining Pilot Recycling Facility Update Copyright © 2024 Aqua Metals, Inc. All Rights Reserved. 15
Slide 16: Li AquaRefining Pilot Plant Operations Update
Li AquaRefining Pilot Plant Operations Update Only sustainable lithium battery recycler with operational Pilot in North America – Operating 24x5 Proven ability to recover valuable materials from black mass, producing samples for OEMs Only facility natively producing lithium hydroxide or carbonate -
Slide 17: 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 18: Sierra ARC Commercial Scale Facility Update
Sierra ARC Commercial Scale Facility Update Copyright © 2024 Aqua Metals, Inc. All Rights Reserved. 18 18
Slide 19: Tahoe-Reno Industrial Center
Reno, NV – Phase One (Coming 2024) 3,000 tonnes-per-year capacity Tahoe-Reno Industrial Center 10,000 tonnes-per-year total capacity 19 Full campus operational by 2028 Copyright © 2023 Aqua Metals, Inc. All Rights Reserved.
Slide 20: Upfitting Completion + Equipment Being Delivered
Upfitting Completion + Equipment Being Delivered 15 19 Copyright © 2023 Aqua Metals, Inc. All Rights Reserved.
Slide 21: Aqua Metals Business & Partnerships Updates
Aqua Metals Business & Partnerships Updates 21
Slide 22: Aqua Metals Converting Black Mass into Revenue
Aqua Metals Converting Black Mass into Revenue 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) • 2025-2030, an estimated 6.5M tons of EV batteries will reach end of life and need
Slide 23: 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 24: 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 fundi
Slide 25: Yulho & Aqua Metals Partnership
Yulho & Aqua Metals Partnership South Korea-based Yulho has become a strategic investor in Aqua Metals and will be licensing AquaRefining technology. Highlights: ❑ 25-year history, established in South Korea’s advanced technology industries ❑ Rapidly growing storage solution and battery materials co
Slide 26: Management
Management Steve Cotton Judd Merrill Ben Taecker Dave McMurtry President and Chief Chief Financial Officer Chief Engineering Chief Business Executive Officer and Operating Officer Officer Rejoined Aqua Metals in, 2018; Joined Aqua Metals in 2018 from 20+ years of experience in Experienced Silicon Va
Slide 27: 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 28: NASDAQ: AQMS
NASDAQ: AQMS WWW.AQUAMETALS.COM Copyright © 2022 Aqua Metals, Inc. All Rights Reserved. 28
Slide 29: Appendix
Appendix 29
Slide 30: Financial Overview
FINANCIAL OVERVIEW Copyright © 2022 Aqua Metals, Inc. All Rights Reserved.2 30
Slide 31: Financials
Financials As of March 31, 2024 Additional Sources of Capital Non-dilutive loan financing – Cash and cash equivalents $8.3M Up to $33.0M targeted potential Other non-dilutive loan Total assets $31.4M financing – USDA, royalty, $25.0M min. targeted or JV Quarterly burn rate (approx.) $5.0M U.S. Gover
Slide 32: Consolidated Balance Sheets
December 31, March 31, 2024 2023 ASSETS Current assets Cash and cash equivalents $ 8,294 $ 16,522 Note receivable - LINICO 450 600 Accounts receivable — 67 Inventory 1,040 929 Prepaid expenses and other current assets 296 181 Total current assets 10,080 18,299 Consolidated Non-current assets Balance
Slide 33: Consolidated Statement of Operations
Three Months Ended March 31, 2024 2023 Operating cost and expense Plant operations $ 2,209 $ 1,065 Consolidated Research and development cost 588 445 Gain on disposal of property, plant and equipment — (20 ) Statement of General and administrative expense Total operating expense 2,995 5,792 3,006 4,
Slide 34: Consolidated Statement of Cash Flows
Three Months Ended March 31, 2024 2023 Cash flows from operating activities: Net loss $ (5,752 ) $ (4,606 ) Reconciliation of net loss to net cash used in operating activities Depreciation and ROU asset amortization 280 141 Amortization of intellectual property 45 45 Fair value of common stock issue