Loop Industries has entered into a sales and Marketing agreement with Ester Loop Infinite Technologies, enabling potential annual net sales of $500 million. This arrangement allows Loop to generate royalties as it expands its market for recycled plastics.

Key Highlights

  • Loop Industries authorized Ester Loop Infinite Technologies to build and operate Manufacturing facilities in India for producing recycled plastics.
  • The agreements involve tiered Royalty payments tied to annual net sales, commencing upon the first commercial sale of licensed products.
  • The agreements are effective as of February 4, 2026, marking a significant milestone for Loop’s expansion in the recycling sector.

Loop Industries, Inc. (NASDAQ: LOOP) has finalized agreements with Ester Loop Infinite Technologies Private Limited, facilitating a path to potentially exceed $500 million in annual net sales from its licensed products. The collaborations denote a strategic foothold in India's recycling sector, predicated on Loop's proprietary Infinite Loop™ technology, aimed at producing recycled dimethyl terephthalate and mono-ethylene glycol. This significant leap enables Loop to tap into the burgeoning market for recycled plastics.

License Agreement Established

On August 13, 2026, Loop executed a License Agreement with ELITe, granting exclusive rights to use its proprietary depolymerization technology in India. This agreement involves building and operating state-of-the-art facilities for producing recycled products, specifically rDMT and rMEG, turning waste back into valuable materials. Royalties are structured on a tiered basis, incentivizing higher sales volumes as they surpass $500 million, after which defined minimum and maximum payment thresholds apply.

This licensing deal positions Loop to capture substantial market potential, which could significantly boost its financial performance through growing Revenue streams.

Marketing Agreement Boosts Visibility

In conjunction with the License Agreement, Loop has secured a Marketing Agreement appointing it as the exclusive sales and marketing representative for ELITe's recycled products. Loop maintains authority over sales contracts and pricing while being compensated through tiered marketing service fees linked to annual net sales. The terms also dictate a decline in fee rates as sales Volume increases.

As Loop leverages its reputation and network, this agreement is poised to streamline market access and create a strong sales pipeline, enhancing overall revenue opportunities for both Loop and its joint venture.

Service Agreement Enhances Operations

A Services Agreement was also put in place on August 13, 2026, wherein Ester will assist ELITe with operational services to facilitate the establishment and running of the joint venture. This assistance includes project management and access to essential know-how in continuous polymerization at no extra cost. The service fees, similar to royalties and marketing fees, will be tiered, encouraging higher sales while ensuring compliance.

The provision of these services is expected to result in efficient project execution, thus driving operational enhancement as ELITe moves toward commercial production.

Future Catalysts to Monitor

The agreements will become effective on February 4, 2026, positioning Loop for a strategic launch in a rapidly growing market. Investors should keep an eye on developments as Loop proceeds to realize these agreements, particularly the first commercial sale of licensed products, which will trigger the commencement of royalty payments. This milestone could materially elevate Loop's revenue profile while also serving as a critical barometer for the venture's long-term success in recycling operations.