Ace Green Recycling to go public following merger with Athena Technology Acquisition

Ace Green Recycling, a leading provider of sustainable battery recycling technology solutions, and Athena Technology Acquisition Corp. (ATAC II), a special purpose acquisition company, have entered into a definitive business combination agreement. ATAC II will merge with Ace, with Ace becoming a wholly-owned subsidiary of ATAC II and Ace's operations becoming the operating business of the combined entity.

Ace's battery recycling technology focuses on recovering critical battery materials from both lead and lithium-ion batteries. The company's modular technologies are fully electrified, producing zero Scope 1 emissions, zero toxic water, and zero solid waste. These capabilities position Ace as a provider of hydrometallurgical recycling solutions without any smelting or thermal processes for both lead and lithium batteries, says the company. 

Ace currently operates commercial lithium-ion recovery facilities in India that it owns, and in 2024 licensed its technology to ACME Metal in Taiwan for lead, with advanced plans to deploy its technology by building its own plant in the United States. The company says it has proven its technology's commercial credentials by enabling the processing of more than three million pounds of lead and lithium batteries in India and Taiwan. 

Proven lithium and lead recovery technology

Ace's LithiumFirst technology is capable of commercially recovering up to 75 percent of lithium with a purity exceeding 99 percent from lithium iron phosphate (LFP) and Nickel Manganese Cobalt (NMC) batteries. In addition to recovering Lithium, the company's LithiumFirst technology also recovers NMC salts, graphite, iron phosphate, and other materials such as plastics, steel, aluminum, and copper by utilizing a closed-loop hydrometallurgical process that avoids pyrometallurgical operations and produces no liquid waste or Scope 1 carbon emissions.

Ace's GREENLEAD Recovery Technology is a fully electric process that produces zero Scope 1 emissions and is capable of recovering up to 99 percent of battery-grade lead with more than 99.98 percent purity. Ace's process is designed to replace legacy smelting operations, which are detrimental to the environment, as well as human health, due to potential lead poisoning, and is expected to facilitate a more streamlined permitting process.

Expansion strategy includes future U.S. plants

Ace's expansion strategy centres on the development of battery recycling plants in the U.S., creating centralized hubs for the sustainable recovery of valuable materials from end-of-life batteries. 

These plants are expected to:

• Drive domestic job creation: Generate high-quality manufacturing jobs in the U.S., stimulating local economies and strengthening America's workforce.
• Enhance critical battery material security: Reduce reliance on foreign sources of critical minerals such as lithium, cobalt, nickel, and lead, bolstering domestic supply chains and supporting the growth of the U.S. electric vehicle and renewable energy sectors.
• Promote renewable energy partnerships: Develop partnerships for renewable captive power with distributed power generators, further minimizing the environmental impact of operations.

Key investment highlights include:

• Commercial stage/revenue generating: Ace operates commercial facilities in India (since 2003) and Taiwan (since 2024), with planned project development in the U.S. (Texas), Europe, and Israel, along with complimentary supply chain operations. The company is currently generating approximately $23 million in annual revenue.
• Large target markets: Ace's market strategy targets immense opportunities across two core sectors: the mature lead battery recycling market, valued at over $20 billion in 2024, and the rapidly growing lithium-ion battery recycling market, projected to exceed $35 billion by 2040.
• Anticipated profitability in 2026: A unique modular, cost-effective deployment strategy allows for high margins and an efficient CapEx and OpEx model.
• Diversified business model: The company monetizes considerable opportunities in battery recycling through owned and operated facilities, joint venture and licensing agreements, and supply chain and services contracts.
• Supply chain expertise: Ace is poised for global expansion, supported by a robust network of supply chain partners across the U.S., Europe, Asia, and Africa
• Supportive global tailwinds: National security, economic, and sustainability initiatives have globalized the refining of feedstock and battery production away from traditional sources.
• Management expertise: Ace's team of industry leaders brings together diverse expertise in battery recycling, green energy, business development, and global strategy.