Infinite Loop™ India update

Loop Industries has announced major progress on its Infinite Loop™ India project and continued development of its European initiative.

In September 2025, the company signed multi-year offtake agreements with a leading global sports apparel brand for Twist™ polyester, and with Taro Plast S.p.A. of Italy for the sale of Loop™ DMT. Negotiations with additional apparel and consumer goods brands are also advancing to secure further offtake commitments.

Loop further strengthened its strategic positioning with two key alliances:

With Shinkong Synthetic Fibers Corporation in Taiwan, a global leader in sustainable and high-performance polyester yarns, to accelerate the shift toward textile-to-textile circular polyester.

With Hyosung TNC in Korea, the world’s largest spandex producer, combining Loop’s branded Twist™ polyester with Hyosung’s expertise in advanced textile materials.

In India, Loop’s joint venture ELITe (with Ester Industries Ltd.) finalized the acquisition of a 93-acre site in the state of Gujarat for USD 10.5 million, representing a USD 5 million saving against earlier project cost estimates. The location provides excellent access to textile waste feedstock, renewable energy, and industrial infrastructure, with space for both the planned 70,000-ton facility and a potential 100,000-ton expansion.

Loop also signed a USD 1.5 million engineering services agreement to support detailed design work for the facility and engaged KPMG to lead the debt syndication process for project financing.

European Partnership with Reed Societe Generale Group

Meanwhile, the Infinite Loop™ Europe project, developed in partnership with the Reed Societe Generale Group, is moving forward. The partners are in the final stage of site selection and are in discussions with government bodies regarding incentives and strategic partnerships. Loop expects to provide engineering services and modular construction solutions for the project, generating initial engineering revenues in 2026.

Financial highlights

Cash operating expenses* for the quarter were $2.43 million, reflecting a year-over-year decrease of $1.74 million. At the end of the second quarter, we had total available liquidity of $9.86 million, which we believe to be sufficient to fund operations while we secure the balance of our financing requirements for our equity contribution to the India JV and for operating expenses until the start-up of the Indian facility.

*Cash operating expenses include research & development and general & administrative expenses, less stock-based compensation expenses.

According to Daniel Solomita, Founder and CEO of Loop Industries: "This was a landmark quarter for the Infinite Loop India project. With the strategic site now secured in the Gujarat Province, we have achieved several milestones necessary to advance the facility to the construction phase. On the commercial front, we secured our foundational anchor customer through a major off-take agreement with a world-leading sports apparel company, complemented by an agreement with Taro Plast to supply sustainable DMT for the automotive industry. We are also making significant headway in securing project debt financing from a strong syndicate of international and local Indian banks," said Daniel Solomita, Founder and CEO of Loop. "The European project is also progressing well, and we are now in the final stages of site selection. Once the optimal site is secured, we anticipate this project will begin generating a meaningful new revenue stream for Loop. This revenue will be sourced from initial Engineering services and subsequent milestone licensing payments from the Reed Societe Generale Group."