American Battery Technology Company announced that it has executed a term sheet agreement with global marketing and supply chain platform TechMet-Mercuria for a $20 million non-dilutive pre-payment for the purchase of its recycled battery metal products. ABTC has developed an integrated, first-of-kind process for the recycling of lithium-ion batteries into battery grade metals for resale into the domestic battery manufacturing supply chain to facilitate a closed-loop economy. Currently completing construction, ABTC's first integrated recycling facility is designed to process over 20,000 MT of battery feedstock material per year.

This first facility will be commissioned in phases, and with the first phase operational, battery materials will be recycled into products including copper, aluminum, steel, a lithium intermediate, and a black mass intermediate material. Once the second phase of this integrated recycling facility is operational, this lithium intermediate will be further refined into a battery grade lithium hydroxide product, and the black mass intermediate material will be further refined into battery grade nickel, cobalt, manganese, and lithium hydroxide products. ABTC has signed a term sheet agreement for the sale of this black mass intermediate material during the first phase of operations of this facility with TechMet-Mercuria SA, which is a joint venture incorporated in Switzerland between TechMet Limited, a private company dedicated to building world class projects that produce, process, and recycle technology metals critical to electric vehicles (EVs), and Mercuria, one of the world's largest integrated independent energy and commodities trading companies.

The terms include an upfront non-dilutive pre-payment of $20 million for this black mass intermediate material, and a marketing arrangement for the sale of this material to end use customers.