15:52:04 EDT Thu 02 May 2024
Enter Symbol
or Name
USA
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Recyclico Battery Materials Inc
Symbol AMY
Shares Issued 256,884,127
Close 2023-06-12 C$ 0.48
Market Cap C$ 123,304,381
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Recyclico signs JV to build battery recycling plant

2023-06-12 07:31 ET - News Release

Ms. Teresa Piorun reports

RECYCLICO BATTERY MATERIALS AND ZENITH CHEMICAL ANNOUNCE A US$25 MILLION LITHIUM-ION BATTERY RECYCLING JOINT VENTURE IN TAIWAN

Recyclico Battery Materials Inc. has entered a 50-50 joint venture with Zenith Chemical Corp. to build a 2,000-metric-tonne-per-year lithium-ion battery recycling plant in Taiwan. The initial plant, estimated to cost $25-million (U.S.), will be dedicated to processing and converting lithium-ion battery waste into valuable resources such as lithium-ion battery precursor cathode active material, lithium hydroxide monohydrate and lithium carbonate.

The parties have agreed to build their first commercial-scale battery recycling facility and contribute 50 per cent of the required capital in three initial stages, with the balance being advanced as required to finance construction and start-up costs. The Zenith contribution (50 per cent) will be financed in cash and Recyclico will receive a 10-per-cent interest in the joint venture company in return for a licence of its technology, with the balance (40 per cent) of its interest in cash.

In building the first commercial battery recycling plant, based on Recyclico's technology, the joint venture combines the extensive expertise, resources and novel technology of both Recyclico and Zenith. The joint venture facility will leverage Recyclico's lithium-ion battery recycling process and Zenith's existing land, infrastructure and labour resources in Taiwan.

Since signing a memorandum of understanding (MOU) in February, 2022, Recyclico and Zenith have successfully collaborated with a leading battery materials company to validate the Recyclico process and to confirm the quality of its high-nickel cathode precursors and lithium chemical products.

Zenith specializes in the production of nickel-based chemicals, including high-purity nickel sulphate for lithium-ion batteries. Zenith's products have gained recognition and qualification from major cathode producers worldwide. Zenith also has a shareholding partnership with Hanwa Co. Ltd., a large publicly traded Japanese distribution company known for its expertise in lithium-ion battery-related materials. Additionally, Zenith collaborates, through a joint venture, with Central Glass Co., Ltd., a leading Japanese publicly traded company specializing in fluorine-based chemicals, and caters to the semiconductor and lithium-ion battery markets.

Zarko Meseldzija, chief executive officer of Recyclico, comments: "By leveraging our collective strengths and expertise, we are confident in our ability to make a significant impact in the battery recycling industry, supporting the circular economy, and demonstrating the efficiency of our process on a commercial scale. This partnership signifies a crucial step forward in our business plan and represents an exciting opportunity for the battery recycling landscape."

Paul Hildebrand, chairman of Recyclico, added: "Zenith is an ideal partner for our first joint venture on several levels. They have deep technical expertise in chemical processing and established infrastructure, which will enable us to move swiftly and efficiently toward production. Zenith has extensive contacts in the lithium-ion battery field, and as a private company, they possess a dynamic and flexible management team capable of reacting quickly to emerging opportunities. I extend my gratitude to the management teams from both Zenith and Recyclico for their commitment and dedication in bringing this agreement to fruition."

James Fang, chairman of Zenith Chemicals, comments, "I am pleased to announce our joint venture and look forward to working closely with Recyclico to establish the first commercial recycling plant in the world, based on Recyclico's proprietary technology."

As an incentive to enter the joint venture, Recyclico will receive a royalty on net product sales and Zenith will receive four million Recyclico shares and six million share purchase warrants. The warrants will have a five-year term, and an exercise price based on the weighted average trading price for the 30-day period preceding the agreement. All securities issued under the joint venture agreement will have a four-month hold period, and the joint venture agreement is subject to acceptance by the TSX Venture Exchange and Investment Commission, Ministry of Economic Affairs of the Republic of China (ICMOEA).

About Recyclico Battery Materials Inc.

Recyclico Battery is a battery materials company specializing in sustainable lithium-ion battery recycling and materials production. Recyclico has developed advanced technologies that efficiently recover battery-grade materials from lithium-ion batteries, addressing the global demand for environmentally friendly solutions in energy storage. With minimal processing steps and up to 99-per-cent extraction of lithium, cobalt, nickel and manganese, the patented, closed-loop hydrometallurgical process turns lithium-ion battery waste into battery-grade cathode precursor, lithium hydroxide and lithium carbonate for direct integration into the remanufacturing of new lithium-ion batteries.

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