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Ace Green Recycling Inc., a company focused on renewable energy, has reached an agreement to go public by merging with special-purpose acquisition company (SPAC) Athena Technology Acquisition Corp. II. The deal values Ace Green's equity at $250 million and is slated to close in the first half of 2025.

Houston-based Ace Green specializes in battery recycling technology that helps minimize waste and conserve crucial minerals like lithium. It serves industries including electronics, automotive, and energy storage, with annual revenue reaching $23 million. If the merger is finalized, Ace Green will obtain Athena’s New York Stock Exchange listing and secure related proceeds from an additional private funding round to support its expansion efforts.

Ace Green's business model utilizes a modular, fully electrified approach to recycling lead and lithium-ion batteries. CEO Nishchay Chadha highlighted that this strategy allows the company to tap into two distinct and sizable markets, helping Ace Green scale quickly while diversifying its feedstock and customer base.

The merger follows an alternative route to the public markets known as the SPAC model, where a shell company raises funds through an initial public offering to acquire a private business, thus providing it with a stock listing. Athena's second SPAC, launched in December 2021 after raising $250 million, is the vehicle facilitating Ace Green’s public debut.

Athena’s first SPAC merged with Heliogen Inc., a renewable energy technology provider, in July 2021. However, its second SPAC’s acquisition of Air Water Ventures Ltd. fell apart before completion. SPACs have lost some momentum after a surge in the early 2020s, with fewer mergers in 2023 compared to the peak in 2021. Yet, deals continue, with 67 mergers completed so far this year, according to SPAC Research.

Chardan is advising Ace Green on the merger, while Lucosky Brookman LLP is representing Ace Green, and Latham & Watkins LLP is advising Athena Technology Acquisition Corp. II.