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.
Disclaimer
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.
Forward-Looking Statements
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.
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SOURCE Green Giant Ltd