And that’s a local partner right here in the state of Nevada that we’re really excited about continuing to develop that relationship as they develop their gigafactory operations over time.
Sameer Joshi: Understood. And then the last one, the equipment that is with ACME, is that — where is it located? And like, it has been written off as of now, but I think you mentioned that it can still be used for demonstration. Who is in control of that equipment and where is it currently?
Steve Cotton: Yeah, so that installation is sitting near Taipei. So it’s really Taipei, Taiwan. And our partner ACME that’s there has that equipment on the ground and runs it from time to time. We actually still have quite a few interested parties that we’re engaging with that are very interested in the lead technology and that is more of our licensing only solution for the lead technology to focus our capital efforts on the build, own and operate of the lithium. But that still serves as a showcase display. And we’ll, for example, we’re planning currently to visit that with one of the prospects from Southeast Asia that we’re engaged with to talk about licensing lead recycling to in the coming month or so. And so that is a great showcase facility that just happens to have an accounting rule that required us to do what we had to do to comply with the GAAP accounting.
Doesn’t mean that the investment made and the showcase effect of the facility is any different. And our partner at ACME is very excited about continuing to work with us and show that technology to other parties and participate in potential business dealings.
Sameer Joshi: Thanks for that color. That’s all for me. I’ll take other questions off line. Thank you.
Steve Cotton: Great. Thank you.
Operator: I’d like to turn the floor back over to Bob Myers for further Q&A.
Bob Meyers: Thank you, operator. The first question is on 6K. What does the supply agreement with 6K mean for the company? And how long do you have until you need to start to sending them recycled materials?
Steve Cotton: Yes. Great question. So we’re really excited about getting the supply agreement finalized, which is the first of some more agreements that will come down the line that our memorandum of understanding outlined. That’s a real pivotal event for the company and really the industry, because together we’re establishing the first sustainable circular supply chain for all these critical battery minerals right here in the US. We think between our technology and 6K decarbonized technology, we really are that first. And it’s really another validation of our off refining technology with the partners that can absorb large quantities of our processing capacity. And we’ll be sending them some initial amounts of recycled lithium carbonate this year in 2024.
And that’s going to start ramping up to larger quantities of all the various battery minerals as we get into 2025 and beyond when we get the Sierra-ARC fully up and running in Phase 1. And again, that’s really a foundation for additional agreements with 6K that we’re working on now, which includes things like co-locating another ARC that’s right next to their Jackson, Tennessee facility for which we’ve sent teams out to workforce development and engineering and land allocation and all the things associated with the co-location type of an agreement. So there’s more to come with 6K and this is a really foundationally established first big step in the partnership and both companies are really excited about it.
Bob Meyers: Thank you, Steve. Next question. You mentioned the Sierra-ARC is currently on time and budget. Can you share a bit more detail?
Steve Cotton: Sure. The fact that the Sierra-ARC is on time and on budget, I think, is really truly a validation of our phased growth strategy. Unlike others in the industry, we took a painstaking detail of time and effort and resources to go with the pilot and pilot the technology first and outfit the new plan ultimately with lower and more predictable overall capital spend, which helps us to stay on time and on budget because we took that disciplined approach. It also took a lot of financial discipline to work with the various suppliers and any expected delays and unknowns that are in the supply chain because we had already gone through that supply chain a bit to get the pilot. So it’s more of an established, mature supply chain for us now that gives us that confidence in time and schedule and costs and all those things.
And then as we showed in our opening video. For those of you that are called in, you can also see that video on our Aqua Metal site. Just click on Media, and then go to the blog. It will be the first entry there under the blog area. But that video shows the significant progress we’ve made. And our current future off-take partners are really eager to see us get to that production stage. A lot of the folks that we’re engaged with beyond who we’ve already announced are really supporting our efforts and working with us to take those sample materials and then get that and that those sample materials are coming from the pilot and get that to the stage where they can sign up their offtake agreements for the Sierra-ARC as well. So that upfitting of that plant is really being finalized and the video shows the inside of the plant ready with the equipment platform and the brand new base floor.
We now have epoxy in the floors even subsequent to the filming of that video and the equipment is ready to get staged and put in and we’ll be turning that plan on this summer. And again, on time and on budget, really driven by our disciplined modular approach, where we took the pilot and really had that informed the build of the plan.
Bob Meyers: Great, thank you. The next question, can you elaborate a bit more on the path to revenue generation?
