Then if we move on to Yulho Materials in South Korea, they’re working on completion of their initial 8,000 tonnes per year facility in South Korea that will take feedstock from the major battery makers in Korea’s production scrap feedstock and then build basically the twin of initially phased of our Phase 1 facility in Sierra ARC and ultimately scaling that to their 8,000 tonnes. And that can generate a lot of — tens of millions of dollars of revenue for them plus a significant percentage of that revenue coming back to Aqua Metals in the form of licensing and running royalty fees. They plan to expand that to a size of 24,000 tonnes per year of black mass production. And if we scale the equivalent of the Sierra ARC ultimately with them to that size facility, that’s about $0.25 billion, give or take, depending again on metals prices and things like that, that we could collect a significant percentage in the form of very high margin licensing and running royalty fees.
And that’s just really the beginning. There’s many other parties that we’re working with out there that are also considering licensing our technology. And we’re taking all the right steps to mutually get through those due diligence process discussions to make sure that those are good fits as well as other opportunities for us to potentially deploy additional Aqua Metals owned and run facilities like we’re doing with 6K Energy. So, I hope that sheds some light on what the economics for these deals look like. And I’ll just conclude that answer with, that’s a testament to the diversity of our business model to build, own and operate and to license the technology. And anything kind of in between is also known as a joint venture co-location.
Bob Meyers: Great. Thank you. Next question. Have you seen any decrease from commercial interests from potential partners given the recent and likely near-term downdrift in prices for some of the battery metals?
Steve Cotton: No, in short. So, there might be a downturn, like I was mentioning earlier, undulation in the rapid growth of the space. But the EV penetration is not a fad, it’s happened and it’s happening and it’s about the speed of the growth rate and all the cell manufacturers, leading manufacturers working very hard to make sure that they can secure the tax-benefited domestically-sourced mineral production for which we’re one of the only companies in North America already that’s producing lithium, as an example, as well as the other battery metals like the nickel and the cobalt and so on. So, we have seen no decline in activity. And in fact, probably, if anything, a little bit more interest because some of the earlier movers have run into some challenges.
And so people are shopping around a little bit for who else they can work with to secure long-term supplies, because those EV manufacturers, the cell manufacturers, if anything else are committed to continue to grow and develop this industry.
Bob Meyers: Perfect. Thank you. A couple on commercialization, I’ll try and combine them. When do you see enough revenue to breakeven? And then when do you see sustainable revenue streams?
Steve Cotton: Yes. So, in my comments at the beginning of the call, I mentioned that our first commercial demonstration plant that we’re building now, the 3,000 tonnes is a milestone for us because that will generate positive cash flows. So, that breakeven concept that we’re all looking forward to, that’s where our models are predicting that at first plant. So, that’s a positive milestone. That’s what we’re constructing. That’s what we’re working towards. So, that’s good. And once that gets set-up and running, we believe that we’ll have sustainable revenues from that. There’s a lot of interest in our materials already, even though we just only produced some of the pilot operations. And so once that first phase gets going, we believe we’ll have sustainable revenue just from that first phase and then we’ll work to construct the second phases of that campus facility and be able to enjoy the revenues from that as well.
Bob Meyers: Great. Thank you. And then on the partnerships, just a little clarification. Are you able to offer a little bit more on the timeframes around 6K and Yulho?
