Aqua Metals Plans Lion Energy Acquisition to Expand Storage

The latest update is out from Aqua Metals ( (AQMS) ).

On February 6, 2026, Aqua Metals entered into a term sheet to acquire all equity of Lion Energy, a U.S.-based provider of commercial, residential and distributed energy storage systems, consumer power products and proprietary energy management software, in a deal valued at up to $94.9 million in cash, stock and performance-based earn‑outs. The proposed all‑stock‑heavy transaction, which also includes a concurrent $4.1 million subordinated participation in Lion’s credit facility and the potential acquisition of Lion’s minority stake in American Battery Factory, is designed to add roughly $50 million of 2025 revenue, extend Aqua Metals into fast‑growing energy storage and virtual power plant markets, and create a vertically integrated, U.S.-focused platform spanning energy storage systems, software, battery manufacturing links and end‑of‑life recycling, subject to financing, due diligence, shareholder and regulatory approvals and an expected closing targeted for the second quarter of 2026.

The term sheet caps Aqua Metals’ post‑closing common stock issuance at 45%, introduces non‑voting, convertible Series X preferred shares to manage ownership concentration, and ties up to $65 million of additional equity consideration to Lion Energy’s revenue and EBITDA performance over 12 months after closing. Governance of the combined entity would keep Aqua Metals’ management in control while adding Lion’s majority owner to a five‑member board, with further independent directors expected, and the first $10 million of post‑closing capital raises earmarked for Lion’s growth initiatives, signaling a strategic bet on integrating energy storage products, grid‑optimized software and sustainable battery materials in a rapidly expanding U.S. storage market.

The most recent analyst rating on (AQMS) stock is a Hold with a $4.50 price target. To see the full list of analyst forecasts on Aqua Metals stock, see the AQMS Stock Forecast page.

Spark’s Take on AQMS Stock

According to Spark, TipRanks’ AI Analyst, AQMS is a Neutral.

The score is held down primarily by weak financial performance (zero revenue, persistent losses, and ongoing cash burn) and bearish technicals (below key moving averages with negative MACD). These are partially offset by a more positive earnings call pointing to improved cost/loss trends, technology progress, and added funding runway.

To see Spark’s full report on AQMS stock, click here.

More about Aqua Metals

Aqua Metals, Inc., listed on Nasdaq as AQMS, operates in the battery metals recycling and refining industry, using its proprietary AquaRefining technology to produce high-purity, low‑carbon battery materials for electric vehicles and grid storage. The company targets the growing demand for sustainable energy storage and a circular domestic supply chain for critical minerals, seeking to link recycling with manufacturing and deployment across the battery lifecycle.

Average Trading Volume: 350,576

Technical Sentiment Signal: Strong Sell

Current Market Cap: $14.37M

See more insights into AQMS stock on TipRanks’ Stock Analysis page.