Aqua Metals has entered into a term sheet to acquire Lion Energy, a provider of commercial, residential and distributed energy storage systems and proprietary energy management software. The deal is structured as an all-stock transaction aimed at integrating battery manufacturing, deployment and recycling into a unified domestic power platform.

The acquisition adds Lion Energy’s $50 million 2025 revenue stream and its firmware, mobile applications and aggregation capabilities for virtual power plants. This complements Aqua Metals’ battery metals recycling expertise and advances its vision for a vertically integrated U.S. battery supply chain.

Upon closing, Lion Energy owners will receive $25.8 million of Aqua Metals stock, with an additional earnout of up to $65 million in shares based on post-close revenue and EBITDA performance over 12 months. The share issuance is determined by a volume-weighted average price over the 20 trading days preceding closing.

U.S. battery storage capacity is expanding over 59% annually, driven by AI data centers, electrification and grid resilience demands. The combined company is positioned to capture growth across energy storage systems, battery materials manufacturing and recycling in decentralized power markets.