Aqua Metals’ Site Selection Timelines and Financial Runway Clash in Q3 2025 Earnings Call

Date of Call: Mar 31, 2026

Financials Results

• Revenue: $0, pre-revenue development stage
• EPS: -$15.15 per basic and diluted share, compared to -$38.20 per share in the prior year

Business Commentary:

Financial Position and Cash Management:

• Aqua Metals ended 2025 with cash and cash equivalents of approximately $10.8 million, following a total of $20 million in new capital raised during the year.
• The company also achieved a significant balance sheet improvement by ending the year with no long-term debt.
• This financial health was a result of strategic capital raises and proactive debt management, providing the company with multiple quarters of operating runway.

Operational and Technical Achievements:

• The company successfully produced battery-grade lithium carbonate with fluorine levels under 30 parts per million, setting a new benchmark for recycled lithium quality.
• Aqua Metals processed a metric ton of LFP cathode scrap, recovering battery-grade lithium carbonate, marking a significant technical achievement in recycling LFP material.
• These accomplishments were driven by disciplined execution and advancements in the AquaRefining process, enhancing product quality and expanding feedstock flexibility.

Strategic Partnerships and Market Positioning:

• Aqua Metals formalized a multi-year supply agreement with 6K Energy and entered a non-binding LOI with Westwin Elements, strengthening its position in the domestic supply chain.
• The company signed MOUs with Impossible Metals and MOBY Robotics, extending its reach into deep sea mineral applications and polymetallic nodules.
• These partnerships reflect Aqua Metals' strategy to expand its total addressable market and create additional pathways for shareholder value creation beyond battery recycling.

Commercialization Strategy and Site Selection:

• Aqua Metals advanced its ARC facility design to support a processing range of 10,000-60,000 metric tons of black mass feedstock annually.
• The company is in active due diligence on candidate sites, focusing on feedstock proximity, utility infrastructure, and strategic alignment with potential partners.
• This strategic approach aims to build a facility that ramps to profitability on a reasonable timeline, supported by contracted feedstock and committed offtake.

Sentiment Analysis:

Overall Tone: Positive

• Statements include: 'We are increasingly recognized as a technically validated, credibly financed player in that space', 'I am confident in our team’s ability to deliver', 'We look forward to continued communicating our updates', and 'We think that our position does become increasingly...more differentiated and stronger'.

Q&A:

• Question from Michael Legg (The Benchmark Company): Assuming the Lion Energy acquisition closes, what are the main areas of focus and natural areas of synergy?
  Response: Synergies include creating an integrated battery materials and energy storage company with circularity, exposure to a U.S. gigafactory (American Battery Factory), and reduced costs/ increased efficiency similar to China's model.

• Question from Michael Legg (The Benchmark Company): How does the equity stake in American Battery Factory fit into the domestic battery ecosystem vision?
  Response: The equity stake is a key value creator and synergistic opportunity, tying together recycling, gigafactory production, and battery energy storage in one location to form a comprehensive North American battery ecosystem.

• Question from Dan Scott (Moderator/Investor Relations, Aqua Metals): Could you give a site selection update? When can we expect an announcement?
  Response: Active due diligence on two sites; goal to select and secure the lead site and progress on site-specific engineering this year.

• Question from Dan Scott (Moderator/Investor Relations, Aqua Metals): What is the status of the feedstock market and how does price volatility affect your commercial position?
  Response: Market backdrop has improved with lithium carbonate prices recovering to ~$20k/ton, strengthening Aqua Metals' position due to process advantages; feedstock sourcing is diversifying through end-of-life batteries and gigafactory scrap.

• Question from Dan Scott (Moderator/Investor Relations, Aqua Metals): Can you talk about the LFP breakthrough in more detail? Why is it significant?
  Response: Significant because it enables economic recovery of lithium and iron phosphate from LFP scrap, a growing volume in EVs and energy storage, positioning Aqua Metals as a leader in the LFP battery market.

• Question from Dan Scott (Moderator/Investor Relations, Aqua Metals): Can you expand on your liquidity position coming out of 2025? How long does current capital support operations?
  Response: Strong position with $10.8M cash, no long-term debt, and lower operating burn; the $20M raised in 2025 provides multiple quarters of runway to advance engineering, site selection, and partnerships.

• Question from Dan Scott (Moderator/Investor Relations, Aqua Metals): How do the MOUs with Impossible Metals, MOBY Robotics, and LOI with Westwin Elements fit with your core business?
  Response: They open access to large new critical mineral markets (deep sea nodules, refining intermediates) by applying the core AquaRefining platform, representing a strategic extension of the business model.

• Question from Dan Scott (Moderator/Investor Relations, Aqua Metals): How do you view ongoing consolidation in the battery recycling industry? Opportunity or risk?
  Response: Net positive; consolidation exposes weaker models, and AquaRefining's lower chemical intensity, waste, and cost structure become increasingly differentiated and stronger as the industry evolves.

Contradiction Point 1

Timeline for Site Selection and Facility Build

It involves inconsistent messaging on when the site selection will be announced and construction will begin, impacting strategic planning and investor expectations.

Dan Scott (Moderator/Investor Relations, Aqua Metals) - Dan Scott (Moderator/Investor Relations, Aqua Metals)

2025Q4: The goal is to secure the lead site and advance Front-End Engineering Design (FEL2) work throughout the year. - [Steve Cotton](CEO)

Can you provide an update on the site selection process, including the current status and expected announcement timeline? - Michael Frederick Legg, Jr. (The Benchmark Company)

20251113-2025 Q3: The build will proceed from a position of confidence... exercising discipline and will not accelerate construction immediately. - [Stephen Cotton](CEO)

Contradiction Point 2

Financial Runway and Capital Position

It involves contradictory statements regarding the company's financial strength and available runway, affecting investor confidence and operational planning.

Dan Scott (Moderator/Investor Relations, Aqua Metals) - Dan Scott (Moderator/Investor Relations, Aqua Metals)

2025Q4: Aqua Metals ended 2025 with $10.8 million in cash and no long-term debt... This strong position provides flexibility... - [Eric West](CFO)

What is your liquidity position as of 2025, and how long will your current capital support operations? - Robert Meyers (Investor Relations, on behalf of online investors)

20251113-2025 Q3: The company is now operating from a position of strength following a $17 million capital infusion. This provides multiple quarters of meaningful financial runway. - [Eric West](CFO)

Contradiction Point 3

Feedstock Security and Contracting

It reflects inconsistent confidence in securing feedstock contracts before construction, impacting the company's perceived readiness and operational strategy.

Dan Scott (Moderator/Investor Relations, Aqua Metals) - Dan Scott (Moderator/Investor Relations, Aqua Metals)

2025Q4: The company is confident in securing feedstock by choosing the path of first securing feedstock contracts before building the facility. - [Steve Cotton](CEO)

What is the status of the feedstock market, and how does battery metal price volatility affect your commercial position? - Michael Frederick Legg, Jr. (The Benchmark Company)

20251113-2025 Q3: Progress is being made on securing bankable contracts, and the strengthened balance sheet provides additional confidence. - [Stephen Cotton](CEO)

Contradiction Point 4

Nature and Strategic Importance of Customer/Partner Discussions

It involves a shift from general partnership discussions to specific, structured deals for the first facility, indicating a change in strategic focus and execution plan.

Michael Legg (The Benchmark Company) - Michael Legg (The Benchmark Company)

2025Q4: The goal is to create an integrated battery materials and energy storage company... This would position Aqua Metals as a player in the domestic battery ecosystem... enhancing shareholder value. - [Steve Cotton](CEO)

Assuming the Lion Energy acquisition is approved, what are Aqua Metals' near-term priorities and key synergies? - Robert Meyers (Unidentified Company)

2025Q2: Focus is on securing supply and offtake partnerships to enable financing for the first commercial ARC facility. The approach is now we'll-build-it-when-they-come. - [Steve Cotton](CEO)

Contradiction Point 5

Site Selection Strategy and Timing

It involves a shift from flexible, cost-efficient site selection to a specific, advanced due diligence process, changing the strategic approach and timeline for facility development.

Dan Scott (Moderator/Investor Relations, Aqua Metals) - Dan Scott (Moderator/Investor Relations, Aqua Metals)

2025Q4: The company is in active due diligence on two specific sites, evaluating feedstock access, logistics, utilities, permitting, and economics. The goal is to secure the lead site and advance Front-End Engineering Design (FEL2) work throughout the year. - [Steve Cotton](CEO)

Could you provide an update on the site selection process, including the current status and expected announcement timeline? - Mickey Legg (Benchmark)

2025Q1: This provides 'meaningful cash runway' to evaluate more cost-efficient locations for future development, ideally near feedstock and offtake sources. The company remains fully committed to building its first commercial ARC once it finalizes offtake, supply, and financing partnerships. - [Steve Cotton](CEO)