Aqua Metals aims to acquire Lion Energy

Aqua Metals Inc., a Reno, Nevada-based battery recycler and refiner, says it has entered into a term sheet to acquire Lion Energy LLC, a developer of commercial, residential and distributed energy storage systems, consumer power solutions and proprietary energy management software headquartered in American Fork, Utah.

Following the closing of the all-stock transaction, Aqua Metals says it plans to leverage Lion Energy’s solutions, brand, intellectual property, capital, technical talent and manufacturing capabilities to become an entity capable of managing the entire battery life cycle, from manufacturing and deployment to intelligent grid participation and end-of-life recovery.

The companies say they expect the transaction to finalize in the second quarter of this year, though exact financial terms have not been disclosed. The proposed transaction remains subject to completion of customary due diligence, audit and valuation work, negotiation, execution and delivery of a definitive agreement, regulatory review, approval by Aqua Metals’ shareholders and other closing conditions.

Following the close of the transaction, Aqua Metals says Lion Energy will operate as a wholly owned subsidiary and separate business unit, with its current executive and management team remaining in place.

“This transaction is intended to add meaningful revenue to Aqua Metals while expanding our participation in the rapidly growing energy storage market,” Aqua Metals President and CEO Steve Cotton says. “Energy storage is a natural extension of our battery materials strategy, and Lion Energy has built a complimentary platform that spans systems, software and customer relationships. Together, we believe this combination would strengthen our path toward a more vertically integrated, U.S.-based battery supply chain and supports our long-term vision for a robust domestic battery materials industry led by our new combined entity.”

A strategic move

According to Aqua Metals, Lion Energy achieved approximately $50 million in revenue in 2025, which Aqua Metals says will provide it “immediate scale.”

The battery recycler says Lion Energy has “built a growing presence in the U.S. Energy storage market” through the deployment of software-enabled residential and commercial energy products. Over a 12-year period, the company has advanced its business from manufacturing portable power stations and power banks to more robust energy storage systems and software for home, commercial and industrial uses.

In addition to its hardware portfolio, Aqua Metals notes that Lion Energy has developed a vertically integrated energy software and systems platform that includes proprietary energy management systems software, cloud connectivity, mobile applications and wireless update capabilities. Aqua Metals says this platform enables intelligent control, monitoring and optimization of distributed energy storage assets across residential, commercial and grid-connected environments, and positions the company to support advanced use cases such as demand response, fleet-level orchestration and the aggregation of distributed assets into virtual power plants.

“From the beginning, Lion Energy has focused on building more than batteries,” Lion Energy CEO Tyler Hortin says. “We have invested heavily in a U.S.-based energy management platform combining software, firmware, hardware and cloud connectivity designed to give customers intelligent control over their energy systems.”

Hortin says the transaction could accelerate his company’s vision, as well as its energy management systems and virtual power plant capabilities, and help it extend its platform across portable, residential, commercial and grid-connected applications.

“We believe the companies’ platforms are complimentary across the battery life cycle, from deployment and operation through end-of-life recovery and recycling,” he says.

Closing the loop

As part of the transaction, Aqua Metals says it also would acquire Lion Energy’s minority ownership interest in American Battery Factory (ABF), a lithium iron phosphate battery cell producer also based in American Fork, Utah.

Aqua Metals says that together, the combination is intended to support a responsible, full-life-cycle approach to batteries, connecting deployment and intelligent operation with end-of-life recovery and recycling within a single platform.

Aqua Metals and ABF already have designs on working together. On Feb. 3, Aqua Metals announced the signing of a nonbinding memorandum of understanding with ABF to evaluate the co-location of a commercial Aqua Metals lithium-ion battery recycling facility adjacent to ABF’s planned battery cell manufacturing campus in Tucson, Arizona.

According to Aqua Metals’ announcement, the proposed partnership would enable it to recycle 10,000 metric tons per year of lithium-ion battery manufacturing scrap generated by ABF, as well as third-party material, and return battery-grade lithium carbonate for reuse in U.S.-based battery production.

Also part of the agreement is the exploration of how domestic manufacturing incentives, including the 45X Advanced Manufacturing Production Tax Credit, could further support the economic competitiveness of U.S.-based battery materials production relative to foreign supply chains.

Aqua Metals says any definitive agreements with ABF would be subject to financing, permitting and regulatory approvals, with a targeted start of commercial operations in 2028.

“This collaboration is intended to reflect the next evolution of battery manufacturing in the United States,” ABF President John Kem says. “Integrating nearby-adjacent recycling directly into the production ecosystem supports our commitment to domestic sourcing, supply security and long-term competitiveness.”

ABF broke ground on its 267-acre Tucson campus in October 2023. In January 2024, the company told Recycling Today that the plant was expected to create up to 1,000 jobs and generate $1.2 billion in capital investment and $3.1 billion in economic impact to the state.

 ABF told Recycling Today its LFP gigafactory has been designed as a “one-stop shop,” with a headquarters and research and development center sharing space with battery cell manufacturing.