Mr. Massimo Bellini Bressi reports

BATTERY X METALS ACHIEVES MILESTONE WITH DELIVERY OF NEXT-GENERATION PATENT-PENDING LITHIUM-ION BATTERY REBALANCING MACHINE FEATURING DESIGN ENHANCEMENTS, ADVANCING STRATEGIC COMMERCIALIZATION INITIATIVES

Battery X Metals Inc.'s wholly owned subsidiary, Battery X Rebalancing Technologies Inc., has taken delivery of three next-generation, patent-pending lithium-ion battery rebalancing machines, each comprising a battery cell balancer and charge/discharge cycling module, developed in collaboration with Beijing Pengneng Science & Technology Ltd., the company's lithium-ion battery rebalancing hardware and software development partner.

In addition to the rebalancing machines, the company has also received battery adapter sets for select electric vehicle (EV) battery architectures, tooling kits and a battery lift, forming part of the company's broader battery rebalancing kit intended for future commercial deployment within automotive service networks, subject to continued research and development progress and commercialization readiness initiatives.

Battery rebalancing kit

The newly delivered rebalancing machines and supporting components are expected to enhance the company's operational capabilities across continuing research and development initiatives, real-world validation activities, and continued adapter development targeting multiple EV battery platforms. The systems are also expected to support product demonstrations, pilot initiatives, technical evaluations and engagement activities involving prospective strategic partners, automotive service providers, dealership networks, fleet operators and prospective future commercial customers as the company advances commercialization readiness for its battery rebalancing technology.

Advancing battery rebalancing technology development and commercial evaluation

Battery X Metals is advancing a patent-pending lithium-ion battery rebalancing hardware and software solution designed to address battery performance degradation associated with cell imbalance in lithium-ion battery systems. As lithium-ion batteries age, imbalance between individual cells within a battery pack can contribute to reduced usable capacity, diminished driving range and accelerated degradation, potentially resulting in premature and costly battery replacement.

The company's patent-pending rebalancing technology is designed to address these challenges through a proprietary active rebalancing process involving energy redistribution at the cell level, with the objective of restoring usable capacity and extending the remaining useful life of lithium-ion battery systems.

The newly delivered rebalancing machines and supporting components are expected to support the company's continuing validation initiatives across multiple EV platforms, including continued development of vehicle- and battery-specific adapters intended to interface with a growing range of EV battery architectures. Battery X Metals intends to utilize these initiatives to further evaluate system performance under real-world operating conditions, with the objective of increasing the remaining useful lifespan of compatible EV battery systems for which the company develops rebalancing machine compatibility; continue refining the technical and operational capabilities of the platform; and support continuing commercialization and market evaluation activities.

Accelerating commercialization and market evaluation

In parallel with its continuing technical development efforts and subject to continued research and development progress, Battery X Metals is advancing commercialization and market evaluation initiatives focused on evaluating the integration of its rebalancing technology within existing automotive service ecosystems. The company intends to utilize the newly delivered systems across a range of product demonstration, pilot and technical evaluation activities involving automotive service providers, dealership networks, fleet operators and prospective strategic partners.

These initiatives are intended to support evaluation of commercial use cases, refinement of servicing workflows and continued engagement with prospective industry participants as Battery X Metals advances commercialization initiatives related to its battery rebalancing technology.

The problem: rising EV adoption presents new battery life-cycle challenges

In 2024, global EV sales reached approximately 17.1 million units, representing a 25-per-cent increase from 2023. With cumulative global EV sales from 2015 to 2023 totaling an estimated over 40 million units, a significant share of the global EV fleet is expected to exit warranty coverage over the coming years.

By 2031, nearly 40 million electric, plug-in hybrid and hybrid vehicles around the world are anticipated to fall outside of their original warranty coverage. This projection is based on current EV adoption figures and standard industry warranty terms and underscores a growing risk for EV owners facing battery degradation, reduced capacity and costly replacement requirements. As the global EV fleet continues to expand, the demand for technologies that extend battery life, reduce long-term ownership costs and support a sustainable transition to electric mobility is increasing.

The solution: pioneering next-generation technologies to support lithium-ion battery longevity

Battery X Rebalancing Technologies' proprietary software and hardware technology aims to address this challenge by extending the lifespan of EV batteries. This innovation is being developed with the aim to enhance the sustainability of electric transportation and the goal to provide EV owners with a more cost-effective, environmentally friendly ownership experience by reducing the need for costly battery replacements.

Battery X Rebalancing Technologies' rebalancing technology, validated by the National Research Council of Canada (NRC), focuses on battery cell rebalancing. The NRC validation demonstrated the technology's ability to effectively correct cell imbalances in lithium-ion battery packs, recovering nearly all lost capacity due to cell imbalance. The validation was conducted on battery modules composed of 15 72Ah LiFePO4 cells connected in series. The cells were initially balanced to a uniform state of charge (SOC), with a measured discharge capacity of 71.10 ampere-hours. In the validation test, three of the 15 cells were then artificially imbalanced -- one cell was charged to a 20 per cent higher SOC and two cells were discharged to a 20 per cent lower SOC -- resulting in a reduced discharge capacity of 46.24 ampere-hours, representing a decrease of approximately 35 per cent. Following rebalancing using Battery X Rebalancing Technologies' rebalancing technology, the battery module's discharge capacity was restored to 70.94 ampere-hours, representing the recovery of approximately 99 per cent of the capacity lost due to cell imbalance.

These advancements establish Battery X Rebalancing Technologies as a participant in lithium-ion and EV battery solutions, aiming to tackle the critical challenges of capacity degradation of battery packs and expensive replacements. By extending the life cycle of battery materials within the supply chain, Battery X Rebalancing Technologies aims to support the energy transition and promote a more sustainable future.

About Battery X Metals Inc.

Battery X Metals is an energy transition resource exploration and technology company committed to advancing domestic battery and critical metal resource exploration and developing next-generation proprietary technologies. Taking a diversified, 360-degree approach to the battery metals industry, the company focuses on exploration, lifespan extension and recycling of lithium-ion batteries and battery materials.

We seek Safe Harbor.