Aqua Metals signs full-output LOI with WMC for Headwaters lithium plant

The NASDAQ-listed recycler secured a non-binding six-year offtake letter covering 7,000 metric tons of lithium carbonate, valued at roughly $135 million

By Rowen Brooks Fri, 11 September 2026 AI level 2 of 5

AI level 2 of 5: drafted by our AI editorial assistant from source material our editor chose; fact-checked, edited and signed off by Mark Walker, Editorial Director. What the levels mean

A brightly lit industrial processing plant features a long central aisle between rows of large, reflective stainless steel tanks and extensive networks of interconnected pipes and valves, illuminated by overhead fluorescent lights.

Aqua Metals has signed a non-binding letter of intent (LOI) with commodity merchant WMC Group AG covering 100% of the planned lithium carbonate output from Project Headwaters, its first commercial-scale AquaRefining facility, expected to be built in the Midwestern United States. The deal gives WMC rights over approximately 7,000 metric tons of lithium carbonate through 2032, representing what the company describes as roughly $135 million of illustrative gross value at current market prices.

Production is expected to ramp gradually: 250 metric tons in 2028, rising to 2,250 metric tons annually by 2032. Pricing under the LOI would be market-indexed, and the two companies are also planning to collaborate on feedstock sourcing, tolling and product qualification. Aqua Metals and WMC are targeting execution of a definitive offtake agreement by 30 September 2026.

The deal

The LOI follows what Aqua Metals describes as a recent commercial sale of battery-grade lithium carbonate produced through its AquaRefining platform to a US customer at market pricing. The company says this validates that recycled lithium from its process meets customer specifications and can command standard market rates.

Chief executive Steve Cotton said the two developments together de-risk the commercial case for Project Headwaters. "We have sold it commercially in the United States at market pricing, and WMC has signed an LOI covering the planned Headwaters output," he said. Sander Elting, WMC's chief executive, said the partnership should help strengthen the US critical-mineral supply chain by combining Aqua Metals' production capability with WMC's trading and marketing reach.

The LOI also contemplates broader collaboration with Liminal by WMC, an integrated partner developing battery recycling and refinery facilities in the Netherlands and Canada. Aqua Metals says that relationship could eventually create opportunities for deployment or licensing of its AquaRefining technology in Europe, though any such arrangement would require separate negotiation. The company noted that the proposed offtake covers only refined lithium, nickel and cobalt products; recovered aluminium, copper and graphite are excluded unless separately agreed.

Market context and policy backdrop

The announcement arrives at a moment of significant regulatory shift in the US battery recycling market. A Presidential determination issued on 30 July 2026 under the Defense Production Act classified recoverable critical minerals, including lithium-ion battery black mass, as resources necessary for national defence. A follow-on rule from the Bureau of Industry and Security, effective 27 August 2026, requires US persons selling battery black mass to allocate all monthly sales to US buyers, absent an exemption. Together, these measures sharply constrain the export of unrefined black mass and create immediate demand for domestic refining capacity of the kind Project Headwaters is designed to provide.

The wider critical-minerals refining market remains highly concentrated: China dominates upstream lithium processing globally, and Western governments have spent the past two years deploying policy tools to build out domestic alternatives. The US Inflation Reduction Act's 45X advanced-manufacturing credit and the broader critical-minerals provisions under the IRA provide financial incentives for domestic battery-material production, though Aqua Metals has not specified which credits Project Headwaters will pursue. Several other recyclers and refinery developers, including Redwood Materials and Li-Cycle, are pursuing comparable domestic capacity, meaning the race to serve the newly mandated US market is intensifying.

Project Headwaters has not yet reached financial close or a final investment decision. Aqua Metals has explicitly cautioned that there is no assurance the definitive offtake will be executed, that the facility will be financed or built on schedule, or that the production volumes or values cited will be achieved. The $135 million figure is illustrative and not contracted revenue. Investors will watch the 30 September definitive agreement deadline, the project financing timeline, and any update on site selection as the near-term milestones.