Clean TeQ Water Limited reported strong operational progress in Q2 FY26, highlighted by a $19 million contract with Rio Tinto and a successful $6 million capital raise. The company is advancing multiple water treatment and critical minerals projects globally.
- Awarded US$12.5 million MBIX contract for Rio Tinto’s Rincon Lithium Project
- Secured engineering contracts for scandium production and tailings dewatering
- Progressed commissioning of PHOSPHIX phosphate removal plant in Ireland
- Completed $6 million capital raise and repaid $1 million loan facility
- Advancing digitisation and graphene membrane development initiatives
Strong Contract Wins Drive Momentum
Clean TeQ Water Limited (ASX, CNQ) has delivered a robust quarterly update for Q2 FY26, marked by significant contract awards and operational milestones. The standout achievement was securing a US$12.5 million (approximately A$19 million) contract to supply its Moving Bed Ion Exchange (MBIX) technology to Rio Tinto’s Rincon Lithium Project in Argentina. This contract not only underscores Clean TeQ’s growing footprint in South America but also validates MBIX as a preferred solution for water-efficient lithium refining.
Alongside Rio Tinto, Clean TeQ was awarded engineering and technical services contracts for scandium recovery at Sunrise Energy Metals’ Syerston Project in New South Wales and for tailings dewatering plant design in NSW. These wins reinforce the company’s expanding role in critical minerals processing and mine water management.
Advancing Commercial Deployment and Technology Validation
The company progressed commissioning activities for its PHOSPHIX® phosphate removal plant in Ireland, meeting stringent EU discharge standards with high water recovery rates. Meanwhile, detailed engineering for the DESALX® water treatment system in Europe was completed, with contract negotiations for the next phase nearing finalisation.
In South Australia, Clean TeQ completed process validation of its proprietary U-Column Enhanced Desorption system at Heathgate Resources’ uranium facility, marking a key commercial milestone. The Go2Lithium joint venture’s continuous Direct Lithium Extraction (cDLE®) pilot plant has been relocated to the Middle East and is now operational on regional brines, furthering Clean TeQ’s strategic focus on lithium extraction technologies.
Financial Position Strengthened Amid Growth
Financially, Clean TeQ completed a $6 million capital raise during the quarter, primarily received in Q2 FY26, supporting its growth strategy. The company also fully repaid a $1 million loan facility, reducing financing costs and strengthening its balance sheet. Cash reserves stood at $5.6 million at quarter-end, with positive net trade receivables reflecting milestone-based payment timing.
Operational cash flow showed some variability due to milestone payment schedules, with $3.8 million received from customers during the quarter and a further $2.5 million collected shortly after period end. This pattern aligns with typical engineering, procurement, and construction (EPC) project cash flows.
Innovation and Digitisation on the Horizon
Beyond project execution, Clean TeQ is advancing its digitisation program, aiming to integrate AI-driven process optimisation and digital twins into its technology platforms. This initiative, led from its Netherlands engineering team, is expected to enhance design accuracy, reduce commissioning risks, and improve long-term operational performance.
The company’s NematiQ Graphene Membrane program also reported encouraging laboratory results for PFAS-specific membranes, moving towards pilot-scale manufacture and commercial discussions, particularly targeting the Middle East drinking water market.
Outlook
Looking ahead, Clean TeQ plans to focus on disciplined delivery of existing contracts, advancing pilot projects to full commercial deployment, and selectively converting its opportunity pipeline. Key activities include progressing commissioning at the PHOSPHIX® plant, finalising DESALX® project delivery, continuing uranium system testing, and expanding lithium extraction and refining applications. The company’s tailings dewatering technology is also expected to move closer to commercial deployment during FY26 and FY27.
Collectively, these developments position Clean TeQ Water as a growing player in water treatment and critical minerals sectors, addressing global challenges related to water scarcity, environmental regulation, and the energy transition.
Bottom Line?
Clean TeQ Water’s expanding project portfolio and technology maturation set the stage for potential growth, but milestone execution and market adoption remain key to watch.
Questions in the middle?
- How will milestone payment timing impact Clean TeQ’s cash flow stability in coming quarters?
- What is the commercial potential and timeline for scaling the cDLE® lithium extraction technology?
- How will the digitisation program influence operational efficiency and competitive positioning?