Aqua Metals to acquire Lion Energy

US battery recycler Aqua Metals (NASDAQ: AQMS) announced Wednesday it has entered into a term sheet to acquire energy storage systems provider Lion Energy LLC.

Aqua Metals said in a press release that it plans to leverage Lion Energy’s brand, intellectual property, capital, technical talent and manufacturing capabilities to transform the company into a domestic player capable of managing the entire battery lifecycle.

Founded in Utah, Lion Energy has built a growing presence in the US energy storage market through the deployment of software-enabled residential and commercial energy systems.

“This transaction is intended to add meaningful revenue to Aqua Metals while expanding our participation in the rapidly growing energy storage market,” CEO Steve Cotton stated in the release.

In late 2025, Aqua Metals signed a letter of intent with Westwin Elements, the only major US nickel refinery, to supply up to 1,000 metric tons of recycled nickel carbonate a year starting in 2027.

“Energy storage is a natural extension of our battery materials strategy, and Lion Energy has built a complementary platform that spans systems, software and customer relationships,” Cotton said.

“Together, we believe this combination would strengthen our path toward a more vertically integrated, US-based battery supply chain, and supports our long-term vision for a robust domestic battery materials industry led by our new combined entity.”

“From the beginning, Lion Energy has focused on building more than batteries,” Tyler Hortin, CEO of Lion Energy, said in a press release. “We have invested heavily in a US-based energy management platform combining software, firmware, hardware and cloud connectivity designed to give customers intelligent control over their energy systems. This transaction could accelerate that vision.”

Under the term sheet, Aqua Metals would acquire Lion Energy through an all-stock transaction that preserves executive and board control of the combined company. At the closing, Lion Energy owners would receive approximately $25.8 million of Aqua Metals shares, and are entitled to receive up to $65 million in additional shares based on the company’s performance over a 12-month period after completing the transaction.

By market close in New York, Aqua Metals was down 6.9%. The company has a $12.8 million market capitalization.