Yulho Joins Management of US Nasdaq-Listed Company... "Securing Post-Processing Technology and Establishing JV"

Yulho has made a strategic investment in AQUA METALS, a Nasdaq-listed company in the United States. The strategy is to expand the business by securing post-processing (raw material extraction) technology following pre-processing (intermediate production of waste batteries).

On the 19th, Yulho announced that it had signed a contract to acquire new shares worth 5 million dollars (approximately 6.3 billion KRW) issued through a paid-in capital increase by AQUA METALS, a battery recycling company based in Nevada, USA. Through this, Yulho is expected to become the second largest shareholder of AQUA METALS.

Following this investment, Yulho plans to make additional investments in AQUA METALS. The additional investments will be carried out in stages. The second stage is at the time of establishing a joint venture, and the third stage is at the time of entering the US and global markets.

AQUA METALS is a company that possesses the world’s best eco-friendly technology in the battery recycling post-processing field, with technology to recover all high-purity precious metals (raw materials) from waste batteries. Unlike the existing wet and dry smelting methods, the core technology is an eco-friendly extraction method using water and electrochemical reactions with minimal chemicals. The company blocks followers’ pursuit at the source through 73 global patents and 43 licenses pending.

A Yulho official explained, “AQUA METALS’ aqua refining technology is an innovative technology that solves the environmental pollution problems that have hindered the waste battery post-processing industry so far,” adding, “This technology reduces chemical waste and carbon by 99% and 96%, respectively, compared to existing companies’ pyro smelting and standard wet smelting (hydro process) methods.”

With this investment, Yulho can transplant AQUA METALS’ eco-friendly post-processing technology to its subsidiary, Yulho Materials. The decisive reason AQUA METALS, a post-processing specialist company, joined hands with Yulho is Yulho’s high pre-processing recovery rate. The most important factor in battery recycling is the raw material recovery rate, but current US recycling industry technology loses a significant portion of raw materials during the pre-processing stage, so the proportion of raw materials obtained through waste battery recycling is not high.

Earlier on the 7th, the two companies signed and sealed a memorandum of understanding (MOU) at AQUA METALS headquarters and agreed to actively utilize each other’s technologies and know-how to revitalize battery recycling. The main contents of the agreement include ▲transfer of post-processing technology ▲establishment of a joint venture in Korea ▲management participation through mutual board membership ▲expansion of joint business rights and joint entry into the global market.

An official said, “We signed a non-disclosure agreement (NDA) with AQUA METALS in April and have been conducting behind-the-scenes negotiations,” adding, “Since both companies are leaders in pre-processing and post-processing fields respectively, we expect significant synergy from this investment.”