RecycLiCo Battery Materials Inc. (AMY.V) Earnings Call Transcript & Summary

I'm Jim Goddard. I'm speaking with Zarko Meseldzija, CEO of RecycLiCo. Welcome back to company showcase.

Thanks for having me, Jim.

What's new at RecycLiCo?

Well, I mean, earlier this month, we did announce our collaboration with Nanoramic, which involves testing their innovative cathode electrode material. And actually, earlier this year, Nanoramic also entered into a collaboration with GM. And their collaboration with GM actually, specifically focuses on kind of the joint development and application of Nanoramic's proprietary material as the electrode material for future EV lithium-ion batteries. And their target is to improve EV battery costs, efficiency and sustainability. And really where we fit in or -- like all battery manufacturing processes, there is scrap material that's generated, and that's where we fit in with our collaboration, right? Nanoramic is actually going to contribute its scrap electrodes, which are NMP-free and PVDF-free, which is a component of the cathode material or traditional cathode material. And we're going to be testing their scrap material through our [ RecycLiCo ] process. Now for those of you who don't know, NMP is used as a solvent in the manufacturing of almost every lithium-ion battery currently in production. And it is a critical component of [ electrode ] manufacturing. And it's -- the drying and handling of this material can actually account for almost 48% of the energy consumption in battery manufacturing. So with that in mind and thinking about all the regulations kind of coming into effect around the world and potential bans on these materials in lithium-ion batteries, we see Nanoramic has being -- potentially being able to provide the solution to future battery manufacturing. And with that, RecycLiCo, of course, is a few steps ahead in testing the recyclability of these next-generation materials, right? We've -- so we always think, again, messages from listeners of news they're reading up on and different kinds of batteries out there that are announced, how is the recycling process -- how is this going to affect the recycling process or business model. And these are some kind of those -- these are some of those examples of where we are really kind of on the leading edge of things and always testing the next generation and being sure that our process can continually innovate and handle future materials used in lithium-ion batteries. So with that, we've already received samples of Nanoramic's scrap material, and we'll be comparing the recycling efficiency relative to some of the conventional materials that we've processed and reporting that back to Nanoramic. But as another topic, I have received a number of questions in regards to our AGM date and why we are not holding it during the usual time of year. So as many of you know, last year, we did a name change from American Manganese to RecycLiCo Battery Materials. And with this, we also did a change of business from a mining issuer to an industrial issuer. However, the Securities Exchange requires a shareholder vote to approve this change of business. And the shareholder vote would occur during the AGM. Now, the change of business is an obvious move, given the shift the company has made from a mining focus to recycling since 2016. But as everybody knows, the change of business is a very intensive process to include a number of documents, which our lawyer is working on, that there's just -- this is just the way it is. I mean these are regulations that by the Securities Exchange that does require approval from there and of all necessary documents before we can move on to scheduling an AGM date. Fortunately, we are at the end stage of this process, and we'll set a date once we get the final approval of all documents. So that -- we're really -- we're nearing that end stage or we're at that end stage, and we'll provide updates as we continue. But yes, just for -- to answer the multiple questions I've been getting, I thought it would be easier to do it here on the podcast. And then in recent news, what I was reading is we saw Ford partnering with the South Korean cathode company, EcoPro, and the South Korean battery manufacturer, SK On, to build a new $1.2 billion battery cathode factory in Quebec. Now this is a significant investment in Canada's battery supply chain and, I believe, another opportunity for RecycLiCo to integrate its technology and directly recycle and supply cathode precursor and lithium hydroxide materials within that supply chain, right, because they'll be making cathode materials. And with that, you're going to need precursor and lithium hydroxide. However, what really caught my attention when I was reading this news was that this battery cathode factory joint venture was confirmed to have been in the works for 3 years. Now hindsight is 2020, and this may seem like a really smart move and obvious investment in the growing industry, but these negotiations, as you can see, take time and foresight, especially when making long-term investments, right? Like I can only imagine the management teams on each end and the discussions that they were having. And the size of the facility, the investment amount, going through the technical due diligence, the business due diligence, like all of those things have to align. And -- but it's really great to see this happening now. And this is something I've always talked about and something to keep in mind as billions of dollars are floating around for projects yet to be announced. I've been monitoring companies across the whole industry, especially our competitors. And really, what I've noticed is certain struggles with certain business models that really, I believe, especially the ones that are really focused on, are going big right out of the gate, right? In better market conditions, I think they are able to raise billions of dollars. But to date, they have also spent billions of dollars, with something not much to show for and worse market conditions now as well. Meanwhile, the industry has also shifted underneath them. And now, with so much money raised and such large teams, it's really hard to be flexible, so something we really stick to in our business model and being more nimble, more strategic in our outlook on how we're going to expand, now that we have the first JV, looking at JV 2, 3 and 4 and multiple more to come, where we're strategically planning for these things and making sure that there's sufficient supply and capital that can go into these expansion plans. Now Jim, on one final topic and sort of a [ boneless ] topic to talk about, RecycLiCo will be an exhibitor at the Fully Charged live event in Vancouver. It's going to be from September 10, and I'll be speaking on one of the panels. For those listeners that have been looking for a while, I think you'll remember we were at the Fully Charged event in Austin, Texas back in 2020. I think that was a great show, so really happy to see that they are expanding now and coming to Vancouver, just here in our backyard. It's going to be really easy for us as well with no travel. But as exhibitors, we are also giving 20 guest tickets to give away, and these tickets will be valid for the entire duration of the event. So they're going to have electric cars there. They're going to have all sorts of stuff, all sorts of different panel discussions, test drives. So for those of you local or potentially going to be in the area, if you're interested in attending and you're a listener of this podcast, just send us an e-mail at [email protected], that's [email protected], and somebody will be distributing the codes on the first-come, first-served basis until they're all gone. So we only have a limited number to give away. But yes, I hope to see some of our listeners in-person as well if you're able to make it.

Zarko, for people new to RecycLiCo, what's the company all about and where can they find shares?

Yes. RecycLiCo is a battery materials company, folks in the recycling and upcycling of lithium-ion battery waste into high-value battery-grade precursor cathode materials in lithium hydroxide or lithium carbonate that can go back into making new lithium-ion battery cells. And you can find out more on our website at www.recyclico.com. And we are traded on the TSXV under the ticker symbol AMY. We're traded on the OTCQB under AMYZF and the Frankfurt Stock Exchange under ID4.

Zarko, thank you so much for the update.

Thank you, Jim.

My guest has been Zarko Meseldzija. He's the Chief Executive Officer of RecycLiCo Battery Materials. Our conversation took place on August 18. I'm Jim Goddard. Comments made on company showcase are an expression of opinion only and should not be construed in any manner whatsoever as recommendations to buy or sell any financial instrument at any time, archived online at housestreet.com, company showcase is a production of Howe Street Media Inc.