Aqua Metals, Inc. (NASDAQ:AQMS) surpassed Q3 2023 earnings expectations on Tuesday, November 8, revealing an EPS of $-0.04 against a predicted $-0.05. During the Third Quarter Financial Results Conference Call, CEO Steve Cotton and CFO Judd Merrill provided details on the company's financial strategy, future plans, and recent developments.
Unlike its competitors who rely on government support for large-scale plant construction, Aqua Metals emphasized its self-sustaining approach. The company's commercial plant, requiring half the capital expenditure per ton compared to its closest competitor, underscores their commitment to cost-effective growth.
On Wednesday, November 9, Cotton further elaborated on the company's ability to finance its expansion through traditional debt if applications for government grants and loans do not come through. Aqua Metals' business model includes valuable tax credits and partnerships that generate additional revenue streams due to their lower capital expenditure requirements.
In Q3 2023, the company expanded its partner ecosystem with a strategic investment partnership with South Korea-based Yulho and their Yulho Materials division. This partnership aims at licensing Aqua Metals' lithium AquaRefining technology in Yulho’s South Korean plant.
The company also reported successful collaboration with Dragonfly Energy, which used high purity lithium hydroxide recovered by Aqua Metals from recycled lithium-ion batteries to manufacture a lithium-based battery cell using Dragonfly’s patented Dry Battery Electrode Coating Technology.
Furthering its strategy in the rechargeable battery industry, Aqua Metals signed a memorandum of understanding with 6K Energy. This outlines a future joint venture to co-locate a lithium battery recycling facility in the Eastern United States. The plant will support 6K Energy’s proprietary UniMelt sustainable can manufacturing process.
Management issued forward-looking statements regarding the company's strategy influenced by car electrification, charging infrastructure expansion, and battery tech innovation. They acknowledged the industry's steep overall trajectory amidst short-term fluctuations in growth rates.
The company's unique approach to leveraging technology for commercial plants requiring less capital investment compared to competitors was symbolized by an image of a CO2 laser cutting through metal during the call. The session concluded with a Q&A link, providing further insights into Aqua Metals' strategic direction and financial performance.
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