Comstock Targets 25% Utilization at Industrial-Scale Solar Recycling Plant

Key Points

• Comstock’s Nevada solar-recycling facility is operating continuously, with the company targeting 25% utilization in the fourth quarter. Reaching that level would help validate the process, unit economics and cash generation from plant operations.
• The company sees a growing market as more than 4 million solar panels reach end of life annually, potentially increasing five- to 10-fold over the next decade. Comstock is prioritizing utility-scale customers and OEMs, which it says represent more than 80% of its addressable market.
• Comstock is developing a pilot to recover silver from recycling tailings and evaluating additional facilities, with Ohio currently favored for a second site. It is also pursuing potential monetization of its Sierra Springs powered-land asset, with negotiations expected to continue over the next three to four months.

Comstock NYSEAMERICAN: LODE is operating its first industrial-scale solar-panel recycling facility continuously and plans to increase utilization to 25% during the fourth quarter, Chief Executive Officer Corrado De Gasperis said during a Water Tower Research conference session.

De Gasperis described renewable metals and solar recycling as the company’s flagship activity and said the Nevada facility has moved beyond the early commercialization stage. The operation runs 24 hours a day, seven days a week, and its initial production line is designed to process up to 3.3 million solar panels annually, he said.

The company’s process is intended to recycle panels without generating landfill waste while producing materials including aluminum and glass for sale. De Gasperis said the facility’s continuous operation demonstrates the system can function at an industrial scale and supports Comstock’s effort to build a broader renewable-materials supply chain.

Growing End-of-Life Panel Volumes

According to De Gasperis, more than 4 million solar panels are reaching end of life annually, and that volume could increase by five to 10 times over the next five to 10 years. He said original assumptions that panels would remain in service for 25 to 30 years have proven too optimistic, with some panels now being removed roughly a decade earlier than expected.

He said the problem has become more pressing for panel owners because damaged and retired modules may be stockpiled, improperly stored, scrapped or sent to landfills. Delays in replacing older panels can shift the liability but do not eliminate it, he said.

Comstock is focusing on large utility-scale customers and original equipment manufacturers, with De Gasperis identifying companies such as RWE and NextEra Energy among the largest participants in the market. He said large utility-scale customers represent more than 80% of the addressable market as characterized by the company.

Technology and Operating Ramp

De Gasperis said the key technical challenge in solar recycling is removing laminates, plastics, adhesives and other contaminants from panels while recovering materials that can be sold. If contaminants are not removed effectively, he said, recyclers can instead generate hazardous waste.

He said Comstock’s process is designed to eliminate contaminants while producing clean materials at high speed and scale. De Gasperis said he believes competitors are at least two to three years away from being able to deploy a comparable process, though he acknowledged that estimate could prove shorter or longer.

The company has said it is targeting 25% utilization in the coming months during the fourth quarter. At that level, De Gasperis said the facility would demonstrate continuous operation across each stage of the process, support validation of unit economics and become a positive source of cash rather than a use of cash from plant operations.

Comstock is processing a backlog of panels accumulated over the prior 12 months and beyond, he said. The company’s ability to issue certificates of destruction is also important for customers seeking confirmation that panels have been fully and cleanly disposed of, according to De Gasperis.

Silver Recovery and Network Expansion

In addition to aluminum and upgraded glass, Comstock is developing a pilot project intended to recover silver from recycling tailings. De Gasperis said the company aims to produce evidence before year-end on whether it can process one ton of tailings per day and achieve sufficiently high silver recovery yields.

He said the project remains a development effort and its technical and economic feasibility has not been established. The pilot is intended to provide enough scale to assess unit economics and potential capital requirements for a larger operation.

Comstock is also considering future recycling locations in Ohio, Texas, Nevada and on the East Coast. De Gasperis said proximity to customers and solar-panel deployments would help reduce logistics costs. While the company views the Southwest as a major long-term market, he said Ohio has moved into the leading position for a second site because of customer activity and relationships with national customers and OEMs.

He said stable operation at the existing facility, along with growing panel flows, orders and master service agreements, would be prerequisites for committing production capital to another location.

Sierra Springs Monetization Effort

De Gasperis also discussed Comstock’s Sierra Springs asset, which he characterized as a powered-land opportunity rather than solely a land sale. He said potential counterparties are evaluating factors including entitled land, expansion capacity, power availability, water, fiber infrastructure, regulatory conditions and local community support.

Demand for such infrastructure has increased despite broader debate surrounding data centers and artificial intelligence, he said, while available supply appears to be declining. Comstock is working with advisors and partners as it prepares to engage sophisticated counterparties, with De Gasperis saying the company expects significant work over the next three to four months.

Looking ahead, he highlighted continuous plant operations, the 25% utilization target, the silver-extraction pilot and the marketing process related to Sierra Springs as key areas of focus.

About Comstock (NYSEAMERICAN:LODE)

Comstock Inc is a technology and natural resources company focused on developing solutions for the energy transition and the circular economy. The company's activities include renewable fuels, solar technology and mineral processing, with an emphasis on converting underused or waste materials into products that can support lower-carbon energy systems.

Through its Comstock Fuels business, the company is developing technologies intended to convert woody biomass and other non-food feedstocks into renewable fuels.

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