Aqua Metals, Inc. (NASDAQ: AQMS) has signed a non-binding six-year letter of intent with WMC Group AG covering 100% of the planned lithium carbonate output from Project Headwaters, the company's planned commercial recycling and refining facility in the Midwestern United States, according to a press release.

Project Headwaters is expected to produce approximately 7,000 metric tons of lithium carbonate through 2032, starting with 250 metric tons in 2028 and scaling to 2,250 metric tons annually by 2032. Based on current market pricing, that output represents approximately $135 million in illustrative gross lithium carbonate value. The company noted that actual realized revenue would depend on future commodity prices, product qualification, final pricing terms, and actual production.

The LOI includes market-indexed pricing and contemplates collaboration on feedstock sourcing, tolling, and product qualification. The parties are targeting a definitive offtake agreement by September 30, 2026.

The announcement follows a July 30, 2026 presidential determination under the Defense Production Act identifying lithium-ion battery black mass as an industrial resource necessary for national defense. A subsequent Bureau of Industry and Security rule, effective August 27, 2026, requires U.S. persons selling lithium-ion battery black mass to allocate 100% of monthly sales to U.S. persons, absent an exception.

Aqua Metals also reported a prior commercial sale of battery-grade lithium carbonate produced through its AquaRefining platform to a U.S. customer at market-based pricing.

The LOI also contemplates broader collaboration with Liminal by WMC, an integrated WMC Group partner developing battery recycling and refinery facilities in the Netherlands and Canada, which could involve deployment or licensing of AquaRefining technology in additional markets including Europe. Any such arrangement would require separate negotiation and definitive agreements.

The LOI is non-binding except for certain customary provisions, and there is no assurance that a definitive agreement will be reached or that Project Headwaters will be financed or constructed on the anticipated schedule.