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Highlights

  • The agreement covers a 50-ton supply of silicon anode materials across four years.
  • Joint development partnership to advance batteries for drones, UAS, and defense uses.
  • Manufacturing scale-up underway from 20 TPA to 240 TPA production capacity.

NEO Battery Materials Ltd. (TSXV:NBM) has signed a multi-year offtake agreement along with a joint development agreement (JDA) with a North American lithium-ion battery producer. The customer focuses on high-demand applications such as unmanned aerial systems (UAS), drones, and defense-related portable power systems.

Under the agreement, the customer is obligated to purchase 50 tons of NEO’s silicon anode materials, NBMSiDE® P-200 and P-300N, over an initial four-year term. Shipments are expected to start in 2026, contingent on production capacity, qualification milestones, and the customer’s deployment requirements. Pricing will be set through a mutually agreed formula based on current raw material and processing costs at the time of each delivery.

Through the JDA, NEO will provide P-200 and P-300N samples for integration and testing within the customer’s lithium-ion and lithium-polymer cells. Field evaluations in drones and UAS will guide refinements in battery design, with particular emphasis on energy density, charge and discharge efficiency, safety, and power output.

Capacity Expansion Plans
 NEO Battery Materials is progressing with plans to scale up its silicon anode production to 20 tons annually, following successful prototype validation. Once this capacity is proven, the company intends to scale further to 240 tons annually to meet projected demand in drones, robotics, UAS, and electric mobility markets.

Management Statement
 Spencer Huh, President & CEO of NEO Battery Materials, commented:
 “This Offtake and JDA represent another critical milestone in the commercialization of NEO’s silicon battery technology, as we expand into synergistic, revenue-potential verticals of battery design and manufacturing. By partnering with a North American battery company, we are advancing our mission to establish a robust and high-quality North American battery supply chain. For the Western world, our Company aims to become the go-to alternative for high-performance battery materials and components to any end-use application.”

Company Overview
 NEO Battery Materials is a Canadian-based developer of silicon-enhanced lithium-ion battery technologies. Its products target extended runtime and rapid charging for drones, robotics, unmanned vehicles, consumer electronics, electric vehicles, and energy storage solutions.