RecycLiCo Completes Termination of Taiwan Joint Venture with Zenith
RecycLiCo and Zenith Chemical Partnership Comes to an End
In a significant move reflecting the current economic landscape, RecycLiCo Battery Materials Inc. has made the decision to terminate its joint venture with Zenith Chemical Corporation. This development marks the end of plans to establish a new battery recycling facility in Taiwan, as confirmed by the company, which operates under the ticker TSX.V: AMY.
Details of the Mutual Termination Agreement
The termination was formalized through a Mutual Release and Termination Agreement, executed on the twenty-eighth of April this year. As part of the Agreement, RecycLiCo will divest its entire interest in three million common shares of the joint venture entity, RecycLiCo Zenith Battery Materials Technology Co. The sale is expected to generate gross proceeds of approximately USD $581,114.08. In addition, Zenith has agreed to return four million common shares of RecycLiCo and six million share purchase warrants that were previously granted under the joint venture.
Impact on the Joint Venture
The terms of the agreement ensure that all rights and obligations related to the joint venture are fully and final settled. Once the agreement closes, Zenith will gain complete ownership of the venture, and steps will be taken to dissolve the joint venture company according to Taiwanese regulations. This marks a new chapter for both companies, allowing them to redirect their focus and resources.
Market Conditions Influence Decision
Richard Sadowsky, Interim CEO of RecycLiCo, articulated that this decision was driven by changing market conditions and economic factors not present during the time the joint venture was initially conceived. In highlighting these changes, he noted that the environment surrounding battery material supply and capital requirements has evolved significantly since 2022.
Strategic Shift in Operations
Sadowsky emphasized that despite this setback, RecycLiCo continues to prioritize its global commercialization strategy. By extricating themselves from the joint venture, the company has considerably bolstered its financial position and extended its financial runway, utilizing the savings towards enhancing scientific and technical capabilities. It also underscores their intent to explore potential strategic investments that align with their core growth markets and technological advancements.
About RecycLiCo Battery Materials Inc.
RecycLiCo Battery Materials Inc. is committed to sustainable solutions in the realm of battery materials, focusing on the recycling and upcycling of lithium-ion batteries. By employing advanced technologies, RecycLiCo efficiently recovers battery-grade materials, addressing the growing demand for eco-friendly energy storage solutions. With a remarkable extraction efficiency of up to 99%, their hydrometallurgical process transforms lithium-ion battery waste into valuable materials, including battery-grade cathode precursors, lithium hydroxide, and lithium carbonate.
Future Prospects
As the industry adapts to changes, RecycLiCo remains optimistic about its future. The company's focus on flexible, capital-efficient growth positions it well to tap into emerging opportunities in battery materials and sustainable energy solutions.
Contact Information
For further details about RecycLiCo or inquiries related to their operations, you can reach out to:
Paola Ashton
PRA Communications
Telephone: 604-681-1407
Email: pashton@pracommunications.com
Frequently Asked Questions
What led to the termination of the joint venture?
The termination was largely driven by changing market conditions and the evolving economic environment, which affected the feasibility of the joint venture.
What are the financial details of the Mutual Termination Agreement?
RecycLiCo will sell its shares in the joint venture for approximately USD $581,114.08 and will receive its previously issued shares and warrants back from Zenith.
How does this affect RecycLiCo’s operations?
By eliminating joint venture commitments, RecycLiCo has improved its cash position, allowing it to focus on its core activities and potential strategic investments.
What materials does RecycLiCo specialize in?
RecycLiCo focuses on producing lithium-ion battery materials, particularly through its advanced recycling technologies that recover valuable materials from battery waste.
Who can I contact for more information about RecycLiCo?
For inquiries, you can contact Paola Ashton at PRA Communications via telephone at 604-681-1407 or through email at pashton@pracommunications.com.
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