Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental responsibility
• Sustainable metal recycling
• Worker safety

Environmental Achievements

• Developed AquaRefining, a room temperature, water-based process that greatly reduces environmental emissions compared to traditional smelting.
• AquaRefining produces lead with a purity of 99.996+%, making it purer than lead from mining processes.
• V1.5 Aqualyzer achieves lead production over 300% greater than V1.0, reducing the number of Aqualyzers needed by more than 60%.

Social Achievements

• Established an Innovation Center focused on applying AquaRefining technology to lithium-ion battery recycling.
• Employs 23 people full-time (as of report date).

Governance Achievements

• Settled securities class action and shareholder derivative lawsuits in 2021 with the issuance of $500,000 of common shares and adoption of corporate governance reforms.
• Adopted a policy for transactions with related parties consistent with industry standards and approved by disinterested directors.

Climate Goals & Targets

Environmental Challenges

• Fire at TRIC facility in November 2019, causing significant damage and requiring a shift in business model.
• Limited operating history and recent commencement of revenue-producing operations.
• Need for additional financing to execute business plan and fund operations.
• Coronavirus outbreak potentially affecting operations and license negotiations.
• Untested business model and unproven technology on a large commercial scale.
• Potential for labor issues and higher labor costs.
• Inadequate intellectual property protection.
• Termination of agreement with Clarios.
• Global economic conditions affecting growth and operating results.
• Risks of conducting business outside the United States.
• U.S. government regulation and environmental, health, and safety concerns.
• Mishandling of hazardous materials.
• Foreign government regulation and environmental, health, and safety concerns.

Mitigation Strategies

• Revised business model to focus on licensing AquaRefining technology.
• Seeking funding through asset sales, lease revenue, licensing revenue, and potential equity or debt financing.
• Investing in research and development for lithium-ion battery recycling.
• Seeking licensing arrangements, joint ventures, and strategic alliances.
• Continuous improvement of AquaRefining technology (V1.25L and V1.5 Aqualyzers).
• Strategic investment in LINICO Corporation.
• Completed plant clean-up and repair of fire-damaged areas.
• Maintaining director and officer insurance.
• Negotiating agreements with partners to mitigate risks associated with international operations.
• Educating regulators and the public on the environmental benefits of AquaRefining.
• Implementing measures to comply with environmental, health, and safety regulations.

Supply Chain Management

Climate-Related Risks & Opportunities

Opportunities

• Development of energy-efficient products and processes.

Sustainable Products & Innovation

• AquaRefining technology

Environmental Metrics

ESG Focus Areas

• Environmental responsibility
• Economic competitiveness
• Retaining critical strategic metals within the U.S.
• Lowering reliance on unsafe and toxic mining operations

Environmental Achievements

• AquaRefining is a low-temperature, water-based process, producing far less CO2 waste streams than smelting or chemical driven hydrometallurgical processes.
• In December 2022, completed equipment installation and began operating a first-of-a-kind LiB recycling facility utilizing electricity instead of intensive chemical processes, fossil fuels, or high-temperature furnaces.

Social Achievements

• Created safer work environments compared to traditional smelting.
• Employs 30 people full-time.

Governance Achievements

• Settled two securities class action lawsuits in 2021.

Climate Goals & Targets

Environmental Challenges

• Limited operating history and revenue-producing operations.
• Need for additional financing to execute business plan and fund operations.
• Potential for labor issues and higher labor costs.
• Risks associated with conducting business outside the United States.
• U.S. government regulation and environmental, health, and safety concerns.
• Mishandling of hazardous materials.
• Foreign government regulation and environmental, health, and safety concerns.
• Market price of shares subject to fluctuation and volatility.
• Potential for securities class action litigation.

Mitigation Strategies

• Shifting business model to focus on licensing AquaRefining technology and developing a lithium-ion battery recycling facility.
• Seeking funds through the possible sale of equipment, lease revenue, licensing revenue, and collection on the sale of the building; exploring equity or debt financing.
• Maintaining acceptable labor relations; addressing potential workforce dissatisfaction.
• Developing and operating facilities in multiple locations to optimize technology commercialization.
• Obtaining necessary permits and approvals for AquaRefining operations.
• Implementing safety protocols and procedures to minimize risks associated with hazardous materials.
• Complying with environmental, health, and safety laws in all countries of operation.
• Maintaining adequate director and officer insurance.

Supply Chain Management

Climate-Related Risks & Opportunities

Opportunities

• Development of energy-efficient products and processes.

Sustainable Products & Innovation

• AquaRefining technology for lead and lithium-ion battery recycling.

Environmental Metrics

ESG Focus Areas

• Environmental sustainability
• Clean technology
• Resource recovery

Environmental Achievements

• Developed a cleaner, closed-loop battery recycling process (AquaRefining) that reduces emissions and waste compared to traditional methods.
• Operated a first-of-a-kind LiB recycling facility using renewable electricity.

Social Achievements

• Created safer work environments compared to traditional battery recycling.
• Employs 53 people full-time.

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Limited operating history and revenue.
• Need for additional financing to fund operations and expansion.
• Substantial doubt about ability to continue as a going concern.
• Early-stage company with unproven business model.
• Risks associated with handling hazardous materials.
• Potential intellectual property infringement or challenges.
• Cybersecurity risks.
• Geopolitical and macroeconomic uncertainties.
• Labor issues and higher labor costs.
• Risks of conducting business outside the United States.
• Government regulation and environmental concerns.

Mitigation Strategies

• Developing a commercial-scale lithium-ion battery recycling facility.
• Seeking additional capital through debt financing or equity sales.
• Implementing comprehensive cybersecurity policies and procedures.
• Focusing on a phased development approach for the recycling facility.
• Partnering with producers using non-pyrometallurgical processes for black mass.
• Educating regulators and the public on the environmental benefits of AquaRefining.
• Developing a robust risk management framework.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Partners with producers using non-pyrometallurgical processes for black mass.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Regulatory changes

Opportunities

• Development of energy-efficient products and services

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 7 (Affordable and clean energy)
• Goal 9 (Industry, innovation, and infrastructure)
• Goal 12 (Responsible consumption and production)

AquaRefining contributes to these goals by promoting sustainable resource management, clean energy use, and reducing environmental impact.

Sustainable Products & Innovation

• AquaRefining technology for lead and lithium-ion battery recycling.

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Clean technology
• Recycling
• Sustainable battery production
• Environmental impact reduction

Environmental Achievements

• Developed AquaRefining, a low-emissions, closed-loop recycling technology.
• Initial results indicate AquaRefining produces far less CO2 waste streams than existing processes.

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Limited operating history and revenue.
• Need for additional capital to fund operations and expansion.
• Risks associated with handling hazardous materials.
• Potential for intellectual property infringement or challenges.
• Global economic conditions and their impact on demand.
• Risks of conducting business internationally.
• US government regulation and environmental concerns.
• Labor issues and higher labor costs.

Mitigation Strategies

• Shifting business model to focus on licensing and lithium-ion battery recycling.
• Seeking additional capital through loans, government offerings, and equity sales.
• Implementing safety measures and complying with environmental regulations.
• Protecting intellectual property through patents and trade secrets.
• Monitoring global economic conditions and adapting business strategies.
• Managing international operations effectively and complying with local regulations.
• Obtaining necessary permits and approvals for operations.
• Maintaining acceptable labor relations and addressing potential workforce issues.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Development of energy-efficient products and processes.

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 9 (Industry, Innovation and Infrastructure)
• Goal 12 (Responsible Consumption and Production)
• Goal 13 (Climate Action)

AquaRefining contributes to these goals through its low-emission recycling technology and sustainable battery production.

Sustainable Products & Innovation

• AquaRefining technology for lead and lithium-ion battery recycling.

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Sustainability
• Lithium battery recycling

Environmental Achievements

• Completed a lifecycle analysis of the Li AquaRefining process demonstrating superior environmental performance, cost savings, and waste reductions compared to standard hydrometallurgical battery recycling.

Social Achievements

• Received a Leader in Sustainability award from the Economic Development Authority of Western Nevada (EDAWN), along with commendations from U.S. Senator Catherine Cortez-Masto and Representative Mark Amodei, and recognition from NV Lt. Governor Stavros Anthony for the company’s sustainable lithium recycling solution.
• Supplied Dragonfly Energy with battery-grade, sustainably recycled lithium hydroxide, which was used to manufacture a successfully cycle-tested lithium-based battery cell.

Governance Achievements

• Steve Cotton joined the board of Yulho and Dr. Sung Yi joined the board of Aqua Metals.

Climate Goals & Targets

Environmental Challenges

• Limited commercial-scale production during Q3 2023, resulting in no significant revenue.

Mitigation Strategies

• Successful balance sheet transactions, including an equity raise and strategic investment and partnership with Yulho Co., Ltd., providing $25 million in gross proceeds.
• Advancing strategic partnership with 6K Energy and signing a multi-part MOU for co-located facilities to build the first circular supply chain of critical minerals for lithium battery production in the U.S.

Supply Chain Management

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• AquaRefining™ technology

Awards & Recognition

• Leader in Sustainability award from EDAWN

Environmental Metrics

ESG Focus Areas

• Clean technology
• Sustainable battery recycling
• Environmental impact reduction

Environmental Achievements

• Developed AquaRefining, a low-emissions, closed-loop recycling technology.
• Initial results indicate AquaRefining produces far less CO2 waste streams than smelting or chemical-driven hydrometallurgical processes.

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Lack of sufficient capital resources to sustain operations for the next twelve months.
• Need to raise additional capital to fund operations.

Mitigation Strategies

• Pursuing equity or debt financings and/or reductions in operating costs.
• Exploring potential partnerships, joint ventures, and licensing agreements.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Development of energy-efficient recycling technology.

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• AquaRefining technology for lead and lithium-ion battery recycling.

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Sustainable lithium battery recycling
• Low-emissions technology

Environmental Achievements

• Completion of floor reinforcement, equipment foundations, electric utility and switchgear upgrades, and mezzanine installation with overhead cranes at Sierra ARC.
• Installation of initial equipment including tanks, chillers, evaporators, and controls at Sierra ARC with testing underway.

Social Achievements

• Continued pilot operations showcasing scalability and efficiency of AquaRefining™ technology.
• Reduction in force of personnel.

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Delay in securing funding for Sierra ARC completion due to high interest rates and declining market prices for lithium-ion minerals.
• Suspension of secured credit facility negotiations.

Mitigation Strategies

• Reduction in force.
• Non-essential asset disposition.
• Deferral of certain expenses.
• More standard equipment leasing.
• Continued engagement with counterparties to secure financing through project finance, strategic financial and/or industry investments.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• AquaRefining™ technology

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Sustainable lithium battery recycling
• Environmental efficiency
• Decarbonization

Environmental Achievements

• Pilot facility producing high-purity, battery-grade lithium carbonate at over 99.5% purity.
• AquaRefining™ technology designed to eliminate the production of sodium sulfate, a costly byproduct of traditional recycling methods, reducing expenses and environmental impact.

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Securing long-term funding to complete Phase 1 and Phase 2 of the Sierra ARC facility.

Mitigation Strategies

• Actively engaged in due diligence to finalize long-term financing and commercial supply and off-take partnerships.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• High-purity, battery-grade lithium carbonate

Awards & Recognition

• Not disclosed

Environmental Metrics

Climate Goals & Targets

Environmental Challenges

• The registrant was unable to file the subject report in a timely manner because the registrant was not able to complete the financial statements and related disclosures by the original filing date without incurring unreasonable effort and expense.

Supply Chain Management

Climate-Related Risks & Opportunities