Greenwave Technology Solutions, Inc. Positioned to Capitalize on Nucor's Lexington Facility Launch and Record Domestic Demand

Rhea-AI Summary

Greenwave Technology Solutions (Nasdaq: GWAV), a metal recycling leader operating across Virginia, North Carolina, and Ohio, is strategically positioned to benefit from Nucor 's new Lexington steelmaking facility opening in 2025. The facility will process 430,000 tons annually using nearly 100% recycled materials.

Operating 13 metal recycling facilities and employing 167 people, Greenwave supplies critical recycled metals to major steel mills. The company projects domestic sales to reach 75% of revenue in 2025, up from 41% in previous years, driven by anticipated trade policies and infrastructure investments in the South Atlantic Region.

Greenwave currently supplies Nucor's Hertford mill with steel used in bridges, heavy equipment, and military vessels, including components for the $13 billion USS Gerald Ford aircraft carrier.

Positive

• Strategic position to benefit from Nucor's new 430,000-ton capacity facility
• Projected increase in domestic sales from 41% to 75% of revenue by 2025
• Established supplier relationship with major steel producers including Nucor
• Strong regional presence with 13 metal recycling facilities

Negative

• None.

Insights

Financial Analyst

The strategic positioning of Greenwave near Nucor's upcoming facility represents a significant market opportunity. The projected shift from 41% to 75% domestic revenue by 2025 could substantially improve margins due to reduced transportation costs and higher domestic pricing. The company's expansion to 13 facilities and its established relationships with industry giants like Nucor, Sims Metal Management and Cleveland-Cliffs provide a strong foundation for revenue growth. However, investors should note the company's relatively small market cap of $16.6 million, which suggests potential volatility and execution risks. The anticipated increase in infrastructure spending and potential trade policy changes under a new administration could create favorable tailwinds, but these factors remain speculative until implemented.

Industry Analyst

The metal recycling industry is experiencing a significant transformation with Nucor's new Lexington facility adding 430,000 tons of annual processing capacity. This development, combined with increased infrastructure spending in the South Atlantic Region, creates a robust demand environment for recycled metals. Greenwave's strategic advantage lies in its geographical positioning and existing relationship with Nucor, particularly through its Hertford mill supply chain. The company's American Pulverizer 60x85 shredder capability and expanded facility network demonstrate operational readiness to meet this growing demand. The shift towards domestic sourcing aligns with broader industry trends favoring localized supply chains and sustainable practices.

CHESAPEAKE, Va., Dec. 5, 2024 /PRNewswire/ -- Greenwave Technology Solutions, Inc. (Nasdaq: GWAV), a leader in metal recycling operations across Virginia, North Carolina, and Ohio, is set to benefit from the 2025 opening of Nucor Corporation's state-of-the-art steelmaking facility in Lexington, North Carolina. The facility's staggering 430,000-ton annual processing capacity, consisting of nearly 100% recycled materials, will significantly increase regional demand for recycled steel.

Positioned as a Leading Supplier
Greenwave stands as one of North Carolina's largest suppliers of recycled steel, operating five metal recycling facilities and an industry-leading American Pulverizer 60x85 shredder. Greenwave has a proven track record of supporting Nucor's operations, supplying its Hertford mill with steel for critical applications, including bridges, heavy equipment, and warships vital to American national security interests, including the $13 billion USS Gerald Ford aircraft carrier.

Key Growth Drivers and Market Opportunities

• Surging Regional Infrastructure Demand: Supported by recent federal investment, the South Atlantic Region is experiencing an unprecedented surge in construction projects, driving demand for recycled metals.
• Domestic Market Shift: Greenwave projects 75% of revenue will stem from domestic sales in 2025, up from 41% over the previous four years, as President-elect Trump's anticipated tariffs and trade policies reshape global steel dynamics. This transition is expected to result in significant revenue growth and margin expansion.
• Sustainability Leadership: Operating 13 strategically located recycling facilities, Greenwave aligns with the growing emphasis on sustainable, domestically sourced ferrous and non-ferrous metals vital to the U.S. defense and infrastructure sectors.

Unlocking Shareholder Value

Greenwave's strong operational footprint and relationships with industry leaders – Nucor Corporation, Sims Metal Management, and Cleveland-Cliffs, Inc. – position the Company to capitalize on robust domestic demand and favorable policy shifts. As regional steel supply chains pivot toward sustainable and domestically sourced metals, Greenwave is optimally positioned for rapid growth.

About Greenwave – One of the Mid Atlantic's Leading Metal Recyclers

As an operator of 13 metal recycling facilities, Greenwave Technology Solutions, Inc. (Nasdaq: GWAV) supplies leading steel mills and industrial conglomerates with ferrous and non-ferrous metal. With steel being one of the most recycled materials worldwide, Greenwave supplies the raw metal utilized in critical infrastructure projects and U.S. warships vital to American national security interests. Headquartered in Chesapeake, VA, the Company has 167 employees with metal recycling operations across Virginia, North Carolina, and Ohio.

For detailed financials and updates, visit www.GWAV.com.

Forward-looking Statements
This press release contains certain forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These include, without limitation, statements about its revenue growth, opening of additional locations, margin expansion and cashflow projections. These statements are identified by the use of the words "could," "believe," "anticipate," "intend," "estimate," "expect," "may," "continue," "predict," "potential," "project" and similar expressions that are intended to identify forward-looking statements. All forward-looking statements speak only as of the date of this press release. You should not place undue reliance on these forward-looking statements. Although the Company believes that its plans, objectives, expectations and intentions reflected in or suggested by the forward-looking statements are reasonable, the Company can give no assurance that these plans, objectives, expectations or intentions will be achieved. Forward-looking statements involve significant risks and uncertainties (some of which are beyond the Company's control), assumptions and other factors that could cause actual results to differ materially from historical experience and present expectations or projections. Actual results may differ materially from those in the forward-looking statements and the trading price for the Company's common stock may fluctuate significantly. Forward-looking statements also are affected by the risk factors described in the Company's filings with the SEC. Except as required by law, the Company undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events.

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SOURCE Greenwave Technology Solutions

FAQ

When will Nucor's Lexington facility that affects GWAV operations open?

Nucor's Lexington steelmaking facility is scheduled to open in 2025.

What is GWAV's projected domestic sales percentage for 2025?

Greenwave Technology Solutions projects 75% of revenue will come from domestic sales in 2025, up from 41% over the previous four years.

How many metal recycling facilities does GWAV operate?

Greenwave Technology Solutions operates 13 metal recycling facilities across Virginia, North Carolina, and Ohio.

What is the annual processing capacity of Nucor's new Lexington facility that GWAV will supply?

The Lexington facility will have an annual processing capacity of 430,000 tons, using nearly 100% recycled materials.