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- Secured 3.2 Acre Expansion Site to Establish Battery Cell Manufacturing Lines and Expand Silicon Battery Material Production
- Battery Innovation Platform – End-to-End Capability to Design & Manufacture High-Performance, Customized Battery Solutions
- To Install Expected Annual Capacity of 20 MWh of Cylindrical and Prismatic Cell Production with 20 Tons per Year Silicon Anode Scale-Up
- Relevant Equipment Orders Placed & Definitive Lease Agreement for Operational Electrode Manufacturing Facility in Final Stages
NEO Battery Materials Ltd. ("NEO" or the "Company") ( T S X V : NBM ) ( OTC: NBMFF ), a low-cost, silicon-enhanced battery developer that enables longer-running, rapid-charging batteries for drones, robotics, and electronics, is pleased to secure an expansion site to establish battery cell manufacturing capabilities and scale-up silicon battery material production and research operations. Located adjacent to the recently announced operational electrode manufacturing facility in South Korea ("First Facility"), the site comprises 6 vacant industrial buildings on 2.5 acres with an additional 0.8 acres designated for future expansion.
The expansion site is a critical component in establishing NEO's new Battery Innovation Platform, which will design and manufacture high-performance, customized battery solutions for drones, robotics, and AI-enabled electronics. Cylindrical and prismatic-format battery manufacturing equipment will be installed to produce an expected annual capacity of 20 megawatt-hours (MWh). With existing pouch-format battery equipment in the First Facility, NEO will possess full capability across all 3 battery formats, enabling supply to any end-user system and specification.
In parallel, the Company will apportion one building to expand its silicon battery material production to 20 tons per year. Along with direct sales, NEO's silicon will be integrated into the First Facility's electrode manufacturing lines and then assembled into various battery formats at the expansion site. An enhanced R&D division will be instituted to custom-design solutions for customers, optimize all manufacturing process yields, and advance high-performance battery technologies.
Equipment orders have been placed for (i) battery cell assembly and formation process and (ii) silicon battery material synthesis. The Company will provide updates upon the completion of the deposit payment, site due diligence, and facility preparation. The Company further expects the definitive lease agreement of the operational electrode manufacturing facility to be finalized shortly.
NEO Battery targets to design, develop, and produce the following silicon-enhanced battery products for various end-user applications:
- High-capacity pouch batteries for drones or unmanned aerial vehicles, consumer electronics, and medical devices
- High-nickel NMC (nickel-manganese-cobalt) cylindrical batteries for autonomous or AI-enabled systems, robotics, power tools, and eVTOL or electric aircraft
- LFP (lithium-iron-phosphate) and high-Ni NMC prismatic batteries for energy storage systems for AI data centers and power grid, industrial and commercial mobility (i.e., forklifts, electric boats, e-mobility), and automotive
Mr. Seok Joung Youn, Head of Manufacturing & Facility Operations, commented, "By integrating end-to-end battery value chain capabilities, NEO aims to reduce reliance on outsourced manufacturing, shorten product development timelines, and enhance quality control over the materials, electrodes, and cells supplied to customers. This vertical integration effort will allow the Company to become a reliable, high-quality one-stop shop or a Battery Foundry in the Western and North American supply chain."
About NEO Battery Materials Ltd.
NEO Battery Materials is a Canadian battery materials technology company focused on developing silicon anode materials for lithium-ion batteries in electric vehicles, electronics, and energy storage systems. With a patent-protected, low-cost manufacturing process, NEO Battery enables longer-running and ultra-fast charging batteries compared to existing state-of-the-art technologies. The Company aims to be a globally-leading producer of silicon anode materials for the electric vehicle and energy storage industries. For more information, please visit the Company's website at: https://www.neobatterymaterials.com/ .
On Behalf of the Board of Directors
Spencer Huh
Director, President, and CEO
For Investor Relations, PR & More Information:
info@neobatterymaterials.com
T: +1 (437) 451-7678
This news release includes certain forward-looking statements as well as management's objectives, strategies, beliefs and intentions. All information contained herein that is not clearly historical in nature may constitute forward-looking information. Generally, such forward-looking information can be identified notably by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including but not limited to: volatile stock prices; the general global markets and economic conditions; the possibility of write-downs and impairments; the risk associated with the research and development of battery-related technologies; the risk associated with the effectiveness and feasibility of battery material, electrode, and cell technologies that have not yet been tested or proven on commercial scale; the risks associated with manufacturing process scale-up, including maintaining consistent material, component, and cell quality, production yields, and process reproducibility at a pilot, semi-commercial, or commercial scale; the risks associated with compatibility of existing battery chemistries, formulations, components, or designs; unforeseen risks associated with entering into and maintaining collaborations, joint ventures, or partnerships with battery cell manufacturers, original equipment manufacturers, and various companies in the global battery and downstream end-user supply chain; the risks associated with the failure to develop and produce commercially viable battery products or that technical goals may not be achieved within expected timelines or budgets under a joint development or collaboration; the risks associated with the Company's technologies and products not meeting performance requirements or customer specifications; the risks that prototype and pilot-scale products do not translate into commercial orders; the risk associated that purchase orders and offtake supply may not be fulfilled in full, on time, or at all, as actual revenue realization depends on delivery schedules, achievement of technical milestones, and customer acceptance and validation; counterparty risk upon delivery of prototype and commercial products; the risks associated with constructing, completing, securing, and financing pilot, semi-commercial, and commercial battery materials, components, and cell manufacturing facilities including the Canadian and South Korean facilities; the risks associated with potential delays or increased costs with site preparation, equipment procurement and installation, and facility commissioning; the risks associated with integrating silicon anode material production, electrode manufacturing, and cell assembly within a single operational cluster; the risks associated with supply chain disruptions or cost fluctuations in raw materials, processing chemicals, and additive prices, impacting production costs and commercial viability; the risks associated with uninsurable risks arising during the course of research, development and production; competition faced by the Company in securing experienced personnel, contracts and sales, and financing; access to adequate infrastructure and resources to support battery materials, components, and cell research and development activities; the risks associated with changes in the technology regulatory regime governing the Company; the risks associated with the timely execution of the Company's strategies and business plans; the risks associated with the lithium-ion battery industry and end-users' demand and adoption of the Company's silicon anode technology and battery products; market adoption and integration challenges, including the difficulty of incorporating silicon anodes and silicon battery products within battery manufacturers and OEMs' systems; the risks associated with the various environmental and political regulations the Company is subject to; risks related to regulatory and permitting delays; the reliance on key personnel; liquidity risks; the risk of litigation; risk management; and other risk factors as identified in the Company's recent Financial Statements and MD&A and in recent securities filings for the Company which are available on www.sedarplus.ca . Forward-looking information is based on assumptions management believes to be reasonable at the time such statements are made, including but not limited to, continued R&D and commercialization activities, no material adverse change in precursor, raw material, equipment, and relevant cost prices, development and commercialization plans to proceed in accordance with plans and such plans to achieve their stated expected outcomes, receipt of required regulatory approvals, and such other assumptions and factors as set out herein. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in the forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such forward-looking information. Such forward-looking information has been provided for the purpose of assisting investors in understanding the Company's business, operations, research and development, and commercialization plans and may not be appropriate for other purposes. Accordingly, readers should not place undue reliance on forward-looking information. Forward-looking information is made as of the date of this presentation, and the Company does not undertake to update such forward-looking information except in accordance with applicable securities laws.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
