Recyclico Battery Materials Inc. (AMYZF)

[ALTOGETHER]

American Mg, DLA not moving forward with Wenden
2022-02-17 10:19 ET - News Release

Mr. Larry Reaugh reports

AMERICAN MANGANESE PROVIDES PROGRESS UPDATE ON DEMONSTRATION PLANT FOR LITHIUM-ION BATTERY RECYCLING

American Manganese Inc. and its independent research and development contractor Kemetco Research Inc. have provided a progress update on the demonstration plant project in Greater Vancouver, Canada, that is nearing operational readiness status.

Recycling equipment for the demonstration plant is in place, and the commissioning schedule is on pace, with remaining assembly work to include mounting tank reactors, connecting the ventilation system and wiring power to equipment. Individual equipment testing is intended to ensure all systems and components are powered and water-tested according to operational requirements before full-scale processing of lithium-ion battery scrap.

Approximately 3,500 kilograms of lithium-ion battery cathode scrap has been received as initial feedstock for the 500 kg per day demonstration plant. The cathode scrap is a lithium-nickel-manganese-cobalt composition that is representative of the modern cathode materials used in electric vehicle batteries and potential near-term feedstock supplies. The cathode scrap feedstock is to be used to validate the demonstration plant's preliminary real-world continuous operating efficiencies and is expected to generate a significant amount of recycled lithium, nickel, manganese and cobalt products for potential material qualification with interested third parties.

"I'm extremely pleased with the great progress in our demonstration plant," said Larry Reaugh, president and chief executive officer of American Manganese. "It's a testament to everyone on our team working tirelessly to ensure the success of the project. Our structured approach from initial concept, lab testing, piloting and modelling gives us confidence in our scaled-up selection of equipment and planned testing procedures."

After completing project milestones for the initial U.S. Defense Logistics Agency (DLA)-awarded project, American Manganese's scoping study results indicated areas that would benefit from additional studies to achieve commercial-scale operation near the Wenden stockpile material. As a result, and while American Manganese actively explored continued collaboration on advanced materials reclamation with the DLA, the DLA has notified American Manganese that it will not move forward with the company's phase 2 technical proposal regarding the Wenden stockpile.

Mr. Reaugh commented: "I'm disappointed that following the successful completion of our strategic materials grant, the DLA elected not to undertake our follow-on proposal. We continue to see value in processing the Wenden stockpile material and remain in ongoing discussions with the DLA on ways that AMY's patented process can provide a potential domestic supply of manganese in the U.S."

About American Manganese Inc.

American Manganese is a critical metals company focused on recycling and upcycling lithium-ion battery waste into high-value battery cathode materials, using its closed-loop RecycLiCo process. With minimal processing steps and over 99-per-cent extraction of lithium, cobalt, nickel and manganese, the upcycling process creates valuable lithium-ion battery materials for direct integration into the remanufacturing of new lithium-ion batteries.

We seek Safe Harbor.