ABTC and Recycled Battery Metals Seal the Deal - $20M Term Sheet Signed

  • 10-Mar-2023
  • Journalist: Jaideep

US: American Battery Technology Company (ABTC), based in Reno, Nevada, has reached an agreement with TechMet-Mercuria, a global marketing and supply chain platform, for the purchase of its recycled battery metal products. Under the terms of the non-dilutive prepayment deal, ABTC will receive $20 million from TechMet-Mercuria.

ABTC has achieved a significant milestone in the development of their closed-loop economy initiatives, with the completion of a new integrated recycling facility in Nevada. This first facility is designed to process up to 20,000 metric tons of LIBs (Lithium-ion batteries) each year, allowing for an efficient and sustainable conversion into battery-grade metals for resale into the domestic battery manufacturing supply chain.

The company recently announced that their new facility will be commissioned in phases. The first phase will allow them to recycle battery materials, such as Copper, Aluminium, Steel and Lithium intermediates into products.

Once the second phase is operational, the Lithium intermediates will be further refined into battery-grade Lithium Hydroxide and the black mass intermediate material will be further processed into Nickel, Cobalt, Manganese and battery-grade Lithium Hydroxide products.

TechMet Limited and Mercuria are pleased to announce that they have signed a term sheet agreement for the sale of black mass intermediate material during the first phase of operations of their joint venture facility. The terms include an upfront, nondilutive prepayment of $20 million for black mass intermediate material and a marketing arrangement for the sale of this material to end-use customers. This collaboration marks an important step in pursuing their mission to build projects that produce, process, and recycle technology metals critical to electric vehicles (EVs).

“We are excited to be entering into this prepurchase and marketing agreement with one of the premier global metals marketing firms in the battery metals industry,” ABTC CEO Ryan Melsert states. “As we ramp operations at our first integrated Lithium-ion battery recycling facility, the short-term sale of these intermediate products will be a key enabler to accelerating the implementation of the additional phases of our operations to manufacture commercial quantities of cathode-grade battery metal products for domestic markets.”

ABTC and a partner have successfully executed a term sheet which will form the basis of a definitive agreement in the coming weeks. Jett Capital Advisors LLC acted as financial advisor to ABTC during this process.

“We are excited by our developing relationship with American Battery Technology Company and look forward to extending the global reach of our platform to ABTC as it develops its recycling capabilities,” states Robert Morris and Quentin Lamarche of TechMet-Mercuria.

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