Mar 02, 2023, 09:30 ET
GGE enters into LOI to invest $6 million as part of long-term deal to improve lithium-ion battery recycling in U.S.
HOUSTON, March 2, 2023 /PRNewswire/ -- Green Giant Inc. (NASDAQ: GGE) ("GGE", "Green Giant" or the "Company"), today announced that ACE Green Recycling Inc. (ACE), an innovative recycling platform for battery materials, and Green Giant Energy Texas Inc. (GGE Texas), a subsidiary of GGE, entered into a letter of intent (LOI) for a strategic partnership to build a commercial lithium-ion battery recycling plant in the greater Houston area and boost sustainable battery recycling in North America.
The two companies signed a non-binding LOI to form a joint venture (JV) that will develop and operate the recycling plant, which will be located on land purchased by GGE Texas who will also fund the build-out of the plant with a $3 million investment. The JV will use ACE's proprietary technology and process for sustainably recycling lithium-ion batteries, including end-of life batteries, rejected batteries and other defective batteries sourced from around the region. Once completed, the facility will incorporate ACE's modular equipment design to recycle an estimated 1,800 metric tons of lithium batteries per year.
GGE Texas CEO Junaid Ali said, "Our partnership with ACE furthers our goal of investing in, developing and servicing green energy projects that provide solutions to clean energy transition challenges. The development of a sustainable lithium-ion battery recycling facility in Houston will not only advance circularity of battery materials in the U.S. but will also create positive economic growth for this market."
In addition to setting forth the blueprint to build a greenfield lithium-ion battery recycling facility through the JV, the LOI also stipulates GGE Texas will invest a separate $3 million toward ACE's global operations. Other areas of collaboration in the strategic partnership include providing electricity and solar power solutions for ACE facilities, solar panel recycling, feedstock and equipment procurement, and the sharing of engineering, construction management, operations and maintenance resources to optimize the new Texas facility as well as other ACE facilities.
"We are excited to expand our operations in Houston with our clean battery recycling solutions and are delighted to partner with GGE Texas to create a sustainable, closed-loop battery value chain for the U.S.," said Nishchay Chadha, co-founder and CEO of ACE. "This partnership demonstrates that ACE's modular commercial solutions can help advance electrification in the U.S. with low capital requirements and grow the operations as the EV market grows."
GGE Texas is in the business of partnering with companies to fund and develop green energy solutions to reduce their carbon footprint and help conquer clean energy transition challenges. ACE has developed a portfolio of proprietary, Scope 1 emissions-free technologies to recycle lead-acid and lithium-ion batteries (LAB and LIB) to capture their critical materials. ACE's proprietary technology is powered exclusively by electricity, emits zero greenhouse gases and is believed to have market-leading recovery yields.
Both ACE and GGE Texas are committed to a clean energy transition and, through this strategic partnership, will seek to bring more green energy projects to life.
Completion of the transactions set forth in the LOI is subject to due diligence investigations by the relevant parties, the negotiation and execution of definitive agreements, satisfaction of the conditions negotiated therein, and the satisfaction of other customary closing conditions. There can be no assurance that definitive agreements will be entered into or that the proposed transactions will be consummated. Further, readers are cautioned that those portions of the LOI that describe the proposed transactions are non-binding.
This press release contains forward-looking statements, which are subject to change. The forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All "forward-looking statements" relating to the business of ACE and GGE and the transactions between the parties which can be identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions, involve known and unknown risks and uncertainties which could cause actual results to differ. These factors include but are not limited to regulatory approvals, unexpected changes in technologies, uncertainties inherent in technological development, scaling and roll out, intellectual property protection and other factors affecting the parties business and the proposed JV; as well as the occurrence of any event, change or other circumstances that could give rise to the terms of the LOI not hereafter being memorialized in definitive agreements, the outcome of any legal proceedings that have been, or will be, instituted against the parties to the LOI following announcement of the LOI and transactions contemplated therein; the inability to complete the transactions contemplated by the LOI due to unsatisfied closing conditions; risks that the proposed transactions disrupt current plans and operations as a result of the announcement of the LOI and consummation of the transactions described therein; costs related to the proposed transactions; and those risks and uncertainties discussed from time to time in other reports and other public filings with the Securities and Exchange Commission by GGE.
Please refer to the GGE's Annual Report on Form 10-K for the fiscal year ended September 30, 2021, 2022 and other filings with the SEC, for specific details on risk factors. Given these risks and uncertainties, you are cautioned not to place undue reliance on forward-looking statements. GGE's actual results could differ materially from those contained in the forward-looking statements. GGE undertakes no obligation to revise or update its forward-looking statements in order to reflect events or circumstances that may arise after the date of this release.
About Green Giant Ltd.
For further information about Green Giant Ltd. (NASDAQ: GGE), please go to www.gge.com.
About ACE Green Recycling
For further information about Ace Green Recycling, please go to www.acegreenrecycling.com.
SOURCE Green Giant Ltd
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