Nth Cycle to Go Public Via SPAC Merger with Kensington

Critical minerals refiner Nth Cycle is set to join the public markets through a business combination with Kensington Capital Acquisition Corp. VI. This strategic move values the innovative company at an enterprise valuation of $585 million, signaling significant investor confidence in its disruptive technology and its role in securing domestic supply chains.

The transaction, anticipated to finalize in the fourth quarter of 2026, hinges on the necessary approvals from regulatory bodies and shareholders of both entities. Nth Cycle distinguishes itself with its proprietary OYSTER system and electroextraction platform, designed to process recycled battery materials and primary feeds into high-purity nickel, cobalt, and copper. This approach promises lower capital expenditure and reduced emissions compared to traditional refining methods, aligning with the growing demand for sustainable resource management.

A cornerstone of Nth Cycle's commercial strategy is a substantial 10-year off-take term sheet with global commodities giant Trafigura, valued at approximately $1.1 billion. This agreement underscores the market's readiness for Nth Cycle's output and provides a robust revenue foundation. Furthermore, the company has forged strategic development agreements with key players in the rare earth sector, broadening its market reach and reinforcing its position within the critical minerals ecosystem.

The capital infusion expected from this public listing is substantial. Kensington Capital Acquisition Corp. VI's trust is projected to contribute up to $230 million. An additional $100 million is anticipated from a private investment in public equity (PIPE), with $40 million already committed. These funds will be instrumental in scaling Nth Cycle's operations and advancing its technological capabilities to meet the escalating demand for responsibly sourced critical materials.

Justin Mirro, Chairman and CEO of Kensington Capital Acquisition Corp. VI, emphasized the transformative nature of Nth Cycle's technology. He stated that the company's OYSTER system represents a powerful, scalable solution crucial for fortifying America's domestic critical minerals supply chain for the foreseeable future. This sentiment highlights the strategic importance of Nth Cycle's mission beyond mere financial returns.

The market for battery materials and critical minerals is experiencing unprecedented growth, driven by the global transition to electric vehicles and renewable energy storage. Industry analysts project the global battery recycling market alone to reach tens of billions of dollars within the next decade. Nth Cycle's ability to efficiently and sustainably extract valuable metals from complex feedstocks positions it to capture a significant share of this expanding market.

Legal counsel for Nth Cycle was provided by Latham & Watkins LLP, with Cantor Fitzgerald & Co. serving as exclusive financial advisor. Hughes Hubbard & Reed LLP advised Kensington Capital Acquisition Corp. VI on legal matters. The successful completion of this business combination will mark a significant milestone for Nth Cycle, enabling it to accelerate its growth trajectory and solidify its leadership in the advanced refining sector.