Aqua Metals, Inc. (AQMS): History, Ownership, Mission, How It Works & Makes Money

As the world races toward electric vehicles and grid storage, does Aqua Metals, Inc. (AQMS) possess the only economically viable path to truly sustainable lithium-ion battery recycling? You're seeing a sector grappling with scale, but this company's third-quarter 2025 results show a significant financial trajectory shift, with the year-to-date net loss improving to $12.3 million-a reduction of over one-third from the prior year-plus securing $17.1 million in new funding to accelerate commercialization. They've moved past pilot-scale with their AquaRefining technology, successfully processing a 1 metric ton batch of LFP cathode scrap to produce high-purity lithium carbonate; are you prepared for what this means for the critical mineral supply chain and the potential $12 million in annual contract value from their new nickel carbonate LOI?

Aqua Metals, Inc. (AQMS) History

You're looking for a clear, no-nonsense view of Aqua Metals, Inc.'s journey, and the story is one of a forced, but ultimately successful, pivot. The company started with a clean-tech vision for lead-acid batteries, but a major setback pushed them to apply their core technology, AquaRefining, to the far more lucrative and critical lithium-ion (Li-ion) market. That shift, validated by $17.1 million in fresh capital in late 2025, is the entire game.

Aqua Metals, Inc.'s Founding Timeline

Year established

Aqua Metals was founded in 2014, aiming to disrupt the century-old, high-polluting smelting process used in battery recycling with a cleaner, water-based electrochemical method.

Original location

The company was initially based in Alameda, California, USA.

Founding team members

Key individuals involved in the founding included Stephen R. Clarke, Selwyn Mould, and Thomas Murphy, who championed the initial development of the AquaRefining technology.

Initial capital/funding

The first major capitalization event was its Initial Public Offering (IPO) on the NASDAQ in July 2015, which successfully raised gross proceeds of approximately $32.9 million to fund the development and construction of its first facility.

Aqua Metals, Inc.'s Evolution Milestones

Aqua Metals, Inc.'s Transformative Moments

The company's history is defintely defined by two major transformative moments: the pivot from lead-acid to Li-ion, and the recent financial and technical de-risking in 2025.

The 2019 fire was a devastating operational event, but it was the catalyst for a crucial strategic shift. Instead of rebuilding the capital-intensive lead-acid operation, management chose to license the lead-acid technology and redirect resources toward the Li-ion opportunity, a move that positioned them for future growth in a different, more dynamic market. This was a hard choice, but it saved the core technology.

The most recent and critical transformation involves the technical and financial validation achieved in 2025. This is a big deal.

• Li-ion Technical Validation: Successful pilot-scale processing of 1 metric ton of LFP cathode scrap proved the AquaRefining process can produce high-purity, battery-grade lithium carbonate. This is key because LFP is a difficult, but growing, feedstock.
• Financial Strength: The company secured a total of $17.1 million in new capital in Q3 and October 2025, which, combined with disciplined cost management (year-to-date operating cash use fell to approximately $7.2 million from $10.4 million in the prior year), provides strategic flexibility.
• Strategic Partnerships: In November 2025, an LOI with Westwin Elements outlined the potential supply of 500-1,000 metric tons of recycled nickel carbonate annually, a deal estimated to be worth around $12 million at current nickel prices. This shows a clear path to commercial off-take.

The current strategy is to secure bankable feedstock and off-take agreements before committing to the capital expense of its first commercial AquaRefining Campus (ARC) facility. This disciplined approach limits risk and dilution. You can dig deeper into the company's recent performance and financial footing by reading Breaking Down Aqua Metals, Inc. (AQMS) Financial Health: Key Insights for Investors.

Aqua Metals, Inc. (AQMS) Ownership Structure

Aqua Metals, Inc. (AQMS) is a publicly traded company on the NASDAQ Capital Market, and its ownership structure is characterized by a high concentration of shares held by company insiders and retail investors, with institutional holdings remaining relatively small. This structure means that a significant portion of the company's strategic decision-making power rests with its officers and directors, a key factor for any investor Exploring Aqua Metals, Inc. (AQMS) Investor Profile: Who's Buying and Why?.

Aqua Metals, Inc.'s Current Status

Aqua Metals, Inc. is a publicly listed entity trading under the ticker symbol AQMS on the NASDAQ Capital Market (NasdaqCM). Its public status subjects the company to rigorous reporting and compliance requirements from the Securities and Exchange Commission (SEC), including filing quarterly (10-Q) and annual (10-K) reports. This transparency is defintely a benefit to investors, but still, the high insider ownership means the public float-the shares available for trading-is smaller than many peers.

As of November 2025, the company has also successfully regained compliance with NASDAQ's listing requirements, which strengthens its market position as it moves toward commercial operations. The firm secured a total of $17.1 million in new funding around the Q3 2025 period, including a $13 million post-quarter investment from a single leading institutional investor, bolstering its balance sheet and providing multiple quarters of operating runway.

Aqua Metals, Inc.'s Ownership Breakdown

The company's shareholder base is dominated by insiders and individual investors, meaning the management team and affiliated parties have substantial control over the vote. Here's the quick math on the approximate distribution of ownership as of the 2025 fiscal year data:

The relatively low institutional ownership-only about 4.11%-suggests that large, sophisticated funds have not yet taken significant positions, or they are waiting for further commercialization milestones. This is a double-edged sword: it means less selling pressure from major funds, but also less validation from Wall Street heavyweights.

Aqua Metals, Inc.'s Leadership

The company's strategy is steered by a small, focused leadership team with deep operational and commercial experience, especially in the battery and recycling sectors. This team is responsible for scaling the AquaRefining (hydrometallurgical) technology beyond its initial lead-acid application into lithium-ion battery recycling.

• Steve Cotton: Chief Executive Officer, President, and Director. He has led the company since being promoted to CEO in January 2019 and is central to the company's commercial strategy.
• Eric West: Chief Financial Officer. Appointed to the role in 2025, he manages the financial operations, SEC compliance, and capital management, having previously served in senior finance roles since 2018.
• Ben Taecker: Chief Engineering and Operating Officer. With over two decades of experience in manufacturing and operations leadership, he oversees the technical and operational scaling of the AquaRefining process.

The Board of Directors also includes figures like Steven Henderson, who joined in February 2025 and brings four decades of leadership from the automotive and specialty chemical industries, further aligning the company with its target markets.

Aqua Metals, Inc. (AQMS) Mission and Values

Aqua Metals, Inc. stands for a fundamental shift in how we secure critical minerals, moving beyond traditional, polluting methods to create a truly closed-loop, sustainable supply chain. Their core focus is to commercialize their patented AquaRefining (hydrometallurgical) technology to make battery recycling non-polluting and economically viable for the clean energy transition.

This is a company whose mission is defintely tied directly to the future of U.S. supply-chain independence, a key strategic goal for the nation, especially as they scale up from pilot-level runs, like the 1 metric ton of Lithium Iron Phosphate (LFP) cathode scrap processed in Q3 2025.

Aqua Metals' Core Purpose

Official Mission Statement

The company's mission is to reinvent metals recycling with its patented AquaRefining technology, commercializing sustainable lithium-ion battery recycling that is non-polluting and closes the loop on critical minerals for clean energy technologies.

• Reinvent metals recycling with a water-based, room-temperature process.
• Commercialize sustainable lithium-ion battery recycling that is non-polluting.
• Close the loop on critical minerals for clean energy technologies.

Vision Statement

Aqua Metals' vision is to establish a feedstock-agnostic, low-cost, low-carbon refining platform that supports U.S. supply-chain independence for essential battery metals. They are building a platform designed to scale rationally and sustainably, which is why they are expanding commercial pathways across both battery and emerging critical mineral supply chains.

• Create a secure domestic critical minerals supply chain.
• Deploy capital efficiently and scale the platform rationally.
• Advance toward full commercialization from a position of stability.

For a detailed breakdown of the company's guiding principles, you can review this resource: Mission Statement, Vision, & Core Values of Aqua Metals, Inc. (AQMS).

Aqua Metals Slogan/Tagline

While the company uses various phrases to describe its innovative position, the concise descriptor used across its investor materials is: CLEAN INNOVATOR.

Their operational philosophy also reflects core values like discipline and a long-term view. For example, the Q3 2025 earnings call highlighted a disciplined operating approach that helped reduce the net loss to $2.8 million from $4.7 million year-over-year, showing that financial discipline is a core value in practice. They are also strategically partnering, like the LOI to potentially supply 500-1,000 MT of recycled nickel carbonate annually, which is estimated at a potential ~$12 million annual value at current prices.

Aqua Metals, Inc. (AQMS) How It Works

Aqua Metals, Inc. is fundamentally a clean technology company reinventing metals recycling by using its patented AquaRefining (electro-hydrometallurgy) process to recover high-ppurity, battery-grade materials from spent lithium-ion batteries.

The company replaces the high-heat, polluting furnaces (pyrometallurgy) and intensive chemical baths (traditional hydrometallurgy) typical of current recycling with a closed-loop, electricity-powered system that separates and refines critical minerals like lithium, nickel, and cobalt.

Aqua Metals, Inc.'s Product/Service Portfolio

Aqua Metals, Inc.'s Operational Framework

The company's operations center around its Li AquaRefining™ technology, which is currently being scaled up from a successful pilot phase to a commercial campus.

The process is a cleaner, more precise way to take apart the black mass (the shredded electrode material from spent batteries) and recover the valuable metals.

• Black Mass Feedstock: They take in black mass from end-of-life lithium-ion batteries, including both Nickel-Manganese-Cobalt (NMC) and Lithium Iron Phosphate (LFP) chemistries.
• Electro-Hydrometallurgy: The patented AquaRefining process uses a water-based, room-temperature, electricity-driven method to selectively extract and plate the metals.
• Pilot Validation: The pilot facility successfully processed 1 metric ton of LFP cathode scrap, producing battery-grade lithium carbonate, proving the technology's commercial viability for a key battery chemistry.
• Commercial Scale-Up: Engineering and site selection are underway for the first commercial-scale Sierra AquaRefining Campus (ARC), designed to process 10,000 to 60,000 metric tons per year of black mass.
• Capital Runway: The company secured $17.1 million in new funding in Q3 2025 (including a subsequent $13 million institutional investment), providing multiple quarters of runway to advance commercialization efforts.

Here's the quick math: year-to-date operating cash used was approximately $7.2 million, so that new capital buys significant time for site readiness.

Aqua Metals, Inc.'s Strategic Advantages

The real advantage for Aqua Metals isn't just the technology itself, but the way it maps to the current needs of the US critical mineral supply chain and environmental regulation.

• Superior Product Purity: The Li AquaRefining process yields higher-purity materials, like lithium carbonate with industry-leading low fluorine content, which is defintely a major selling point for battery manufacturers.
• Environmental Edge: It's a low-emissions, closed-loop system with 83% lower CO₂ emissions than traditional hydrometallurgy, making it a critical component for companies seeking to meet environmental, social, and governance (ESG) goals.
• Feedstock Flexibility: The technology can process multiple battery chemistries (NMC and LFP), plus the company is exploring alternative feedstocks like deep-sea polymetallic nodules through MOUs with MOBY Robotics and Impossible Metals.
• Domestic Supply Chain Positioning: The focus on building a US-based commercial facility supports domestic critical mineral independence, which is a major government and industry priority.

To be fair, the company is still pre-revenue on a commercial scale, with a year-to-date net loss of $12.3 million as of Q3 2025, but the pilot validation is a huge step toward securing bankable off-take agreements. You can review the full corporate strategy, including the company's long-term vision, here: Mission Statement, Vision, & Core Values of Aqua Metals, Inc. (AQMS).

Aqua Metals, Inc. (AQMS) How It Makes Money

Aqua Metals, Inc. is currently a pre-revenue commercialization-stage company, meaning its financial engine is built on future potential, not current sales volume. The company's business model is designed to generate revenue primarily through the sale of high-purity, critical battery metals-like lithium, nickel, and cobalt-recovered from spent lithium-ion batteries and other feedstocks using its proprietary, non-polluting electrochemical process called AquaRefining™.

Aqua Metals' Revenue Breakdown

As of the 2025 fiscal year, Aqua Metals' revenue is minimal, reflecting its focus on engineering, permitting, and securing financing for its first commercial-scale facility. Analyst forecasts for Aqua Metals' 2025 annual revenue average around $1.72 million, a figure that largely represents incidental or pilot-scale activities, not commercial production. The revenue breakdown below reflects the current state versus the intended commercial streams.

Business Economics

The core of Aqua Metals' economic model rests on the cost advantage and purity premium of its AquaRefining technology over traditional, high-heat smelting processes. The company is trying to capture margin at two points: lower operating costs and higher-value end products.

• Cost Advantage: AquaRefining is designed to eliminate the production of sodium sulfate, a costly byproduct of traditional hydrometallurgical recycling that requires expensive handling and disposal. This bypasses a major operational expense for competitors.
• Product Purity: The process aims to produce battery-grade metals, such as the battery-grade lithium carbonate successfully produced in pilot runs from lithium-iron-phosphate (LFP) cathode scrap. High-purity output commands a premium price from battery manufacturers (Original Equipment Manufacturers, or OEMs).
• Pricing Strategy: The company's projected profitability is tied directly to current metals market pricing. This means its gross margin will fluctuate with the London Metal Exchange (LME) prices for lithium, nickel, and cobalt, so managing feedstock costs is defintely critical.
• Future Contract Value: Strategic agreements foreshadow the scale of future revenue. For example, the Letter of Intent (LOI) with Westwin Elements for recycled nickel carbonate supply could represent an estimated $12 million in annual contract value once commercial operations begin.

Aqua Metals' Financial Performance

In November 2025, the financial performance snapshot shows a company successfully managing its burn rate while raising capital to fund its transition to commercial scale. The focus is on balance sheet strength and cost discipline, not revenue generation.

• Net Loss Reduction: The company reported a Q3 2025 net loss of $2.8 million, a significant improvement from the $4.7 million net loss in the comparable Q3 2024 period. This reflects lower operating expense and disciplined overhead management.
• Year-to-Date Performance: The year-to-date net loss for 2025 improved to $12.3 million, down from $19.2 million in the prior-year period. Operating cash used year-to-date was approximately $7.2 million, a reduction from $10.4 million in the same period last year.
• Cash Runway: Aqua Metals significantly strengthened its balance sheet by securing $17.1 million in new funding during and subsequent to Q3 2025, providing multiple quarters of operating runway to advance commercialization plans.
• Operating Costs: Total operating costs for Q3 2025 were approximately $2.7 million, demonstrating cost control as the company scales its technical and commercial development programs.

For a deeper dive into the metrics and valuation models, you should read Breaking Down Aqua Metals, Inc. (AQMS) Financial Health: Key Insights for Investors. Finance: secure project financing for the first commercial facility by the end of Q2 2026.

Aqua Metals, Inc. (AQMS) Market Position & Future Outlook

Aqua Metals, Inc. is strategically positioning itself as a technology licensor and first-mover in sustainable lithium-ion battery recycling, particularly for the challenging Lithium Iron Phosphate (LFP) chemistry. The company's future outlook hinges on converting its pilot-scale technological validation into commercial-scale licensing and facility construction, backed by its recent $17.1 million capital raise in Q3 and post-Q3 2025. It's a technology-first play, not a volume-first one, and that's a key distinction you need to make.

Competitive Landscape

The lithium-ion battery recycling market is highly competitive, dominated by established pyrometallurgy (smelting) players and a few rapidly scaling hydrometallurgy companies. Aqua Metals' patented AquaRefining (hydrometallurgy) process competes on purity and environmental footprint, but it is currently pre-commercial at scale for Li-ion, meaning its market share is negligible compared to the industry giants.

Opportunities & Challenges

The global lithium-ion battery recycling market is projected to reach $6.51 billion in 2025, growing at a Compound Annual Growth Rate (CAGR) of over 20.60% through 2032, so the opportunity is huge. But still, the path to commercialization is capital-intensive and slow, so you need to map the risks against the potential upside.

Industry Position

Aqua Metals is currently a technology developer and licensor, not a high-volume recycler, which is why its market share is so low right now. The company's core value proposition is its ability to process diverse battery chemistries, including LFP, which most domestic recyclers avoid due to its lower metal value. They successfully processed 1 metric ton of LFP cathode scrap at pilot scale, producing battery-grade lithium carbonate, a key technical milestone.

• Positioning is as a non-polluting, high-purity alternative to traditional smelting (pyrometallurgy).
• The focus is on building a US-based, circular supply chain for critical minerals, which aligns with significant government incentives.
• Recent MOUs for deep-sea minerals (nickel, cobalt, manganese) with Moby Robotics and Impossible Metals show a defintely ambitious strategy to diversify feedstock beyond traditional battery scrap.
• The company's Q3 2025 net loss improved to $2.8 million from $4.7 million in Q3 2024, showing cost discipline as they transition toward commercialization.

To be fair, the market is still waiting for the first commercial-scale facility launch, which is contingent on securing project financing and fully contracted demand. For a deeper dive into the financials, check out Breaking Down Aqua Metals, Inc. (AQMS) Financial Health: Key Insights for Investors.

Next step: CEO's office to provide a clear, public update on the status of the first commercial facility's project financing by the end of the quarter.