Aqua Metals, Inc.

What they do

Aqua Metals is developing a domestic critical minerals processing platform using its proprietary AquaRefining hydrometallurgical and electrochemical process. The near-term focus is on Project Headwaters ARC, a planned phased campus that will begin with lithium iron phosphate (LFP) battery preprocessing and, in a later phase, integrate AquaRefining to produce battery-grade lithium carbonate, iron phosphate, and graphite. The company currently operates an Innovation Center and demonstration plant and has no commercial revenue.

Revenue drivers

• LFP battery preprocessing (Phase 1) — Planned production of high-specification black mass, aluminum fines, and copper fines from segregated LFP battery materials using commercially proven mechanical equipment. This is expected to be the first source of revenue, but no commercial revenue has been reported to date.
• AquaRefining (Phase 2) — Intended to upcycle black mass into battery-grade lithium carbonate, iron phosphate, and graphite, capturing higher value from the same feedstock. This phase is not yet operational and remains subject to financing and development.
• Broader platform expansion — The company plans to expand beyond LFP into other lithium-ion battery chemistries and selected critical mineral feedstocks over time, which could create additional revenue streams.

Recent performance

As of June 30, 2026, Aqua Metals reported total assets of $12.6 million, total liabilities of $3.1 million, shareholder equity of $9.5 million, and cash and equivalents of $4.7 million. The company reported zero revenue for fiscal year 2024 and the first quarter of 2025, and annual net losses ranged from $15.4 million to $24.6 million over 2022–2025, with a $22.6 million net loss in 2025. Operating cash flow has been negative in every year from 2021 to 2025, totaling -$10.3 million in 2025. In the second quarter of 2026, management noted the transition from technology validation to commercial execution, but no revenue figures were disclosed.

Strategy

Management is pursuing a phased commercialization strategy at Headwaters ARC to reduce execution risk: Phase 1 uses proven preprocessing equipment to generate early revenue, and Phase 2 integrates AquaRefining to increase value recovery. The company is advancing site diligence, engineering, equipment selection, commercial negotiations, and project financing, with Newmark's Advanced Manufacturing Practice Group engaged as an advisor. Management is evaluating multiple capital sources, including project equity, equipment financing, real estate financing, working capital facilities, and government incentives, and aims to match each capital source to project uses. The company continues to operate its Innovation Center and demonstration plant, now with over 5,000 cumulative operating hours, to validate processes and support engineering.

Risks

• No revenue and ongoing losses — The company has generated zero revenue in recent periods and has sustained net losses and negative operating cash flow every year since at least 2021, with only $4.7 million in cash as of June 30, 2026.
• Financing and capital availability — The development of Headwaters ARC depends on securing project financing, equipment financing, and other capital; failure to obtain sufficient funding could delay or halt the project.
• Execution and development delays — The phased commercialization plan is subject to completion of diligence, site acquisition, permitting, commercial agreements, and Board approval, and there is no assurance of timely execution.
• Technology and market adoption — AquaRefining is a patented but not yet commercially proven process for the planned outputs, and the company faces risks in achieving battery-grade product quality and market acceptance.

Outlook

Management expects to announce the selected development path for Headwaters ARC during the current quarter, subject to completion of diligence, negotiations, financing, and customary approvals. The company expects to announce its selected Phase 1 equipment and strategic processing partner in the near term. Management believes the phased approach can establish a pathway to revenue and cash flow earlier than a conventional greenfield refinery, but the timing and scope of the project remain subject to financing, commercial agreements, permitting, and engineering.