Aqua Metals and American Battery Factory Plan Domestic Battery Recycling Hub

Event summary

  • Aqua Metals and American Battery Factory signed a non-binding MOU to evaluate co-locating a lithium-ion battery recycling facility in Tucson, Arizona.
  • The collaboration aims to recycle ABF’s battery manufacturing scrap and return battery-grade lithium carbonate for domestic reuse.
  • The proposed facility could process up to 10,000 metric tons of battery materials annually.
  • Commercial operations are targeted to begin in 2028, subject to financing and regulatory approvals.

The big picture

The collaboration addresses a critical gap in the U.S. battery industry: the lack of domestic recycling infrastructure for manufacturing scrap. By integrating recycling with production, the companies aim to reduce reliance on overseas processing and improve cost competitiveness. This aligns with broader federal initiatives to secure critical mineral supply chains and support domestic battery production.

What we're watching

Execution Risk
Whether Aqua Metals can secure financing and regulatory approvals to meet the 2028 commercial operations target.
Supply Chain Dynamics
How the co-location model will impact logistics costs and operational efficiency compared to exporting scrap for processing.
Policy Impact
The role of domestic manufacturing incentives, like the 45X tax credit, in making U.S.-based battery materials production competitive.