Mr. Dan Blondal reports

OUR NEXT ENERGY (ONE) AND NANO ONE SIGN JOINT DEVELOPMENT AGREEMENT (JDA) TO STRENGTHEN NORTH AMERICAN SUPPLY CHAIN FOR LFP BATTERIES

Nano One Materials Corp. and Our Next Energy (ONE), a Michigan-based energy storage technology company, have signed a joint development agreement (JDA) to collaborate on the validation, qualification and production of a North American supply of lithium iron phosphate (LFP) cathode active materials (CAM).

Highlights:

• Nano One and ONE to jointly develop Nano One's LFP CAM for potential use in ONE's LFP batteries;
• Collaboration aims to qualify and validate LFP CAM for binding offtake agreement;
• Combined innovations are aimed at increasing range while lowering cost, environmental footprint and offering a North American solution.

The CAM will be produced at Nano One's Candiac, Que., pilot and future commercial facilities for potential use in ONE's production LFP cells used in Aries and Gemini batteries. Nano One's Candiac facility is currently the only LFP CAM production plant in North America and its production milestones are aligned with ONE's battery production growth projections. Working together, ONE and Nano One aim to qualify and validate the LFP CAM from its previously announced 200-tonne-per-annum pilot, potentially leading to a binding offtake agreement from the future commercial production facility.

"Establishing a North American supply chain for LFP batteries is one of the pillars on which we founded ONE," said Mujeeb Ijaz, chief executive officer and founder of ONE. "Nano One's innovative and localized CAM process is aligned with ONE's efforts to grow our local material supply chain while minimizing cost, complexity and environmental footprint."

Nano One is repurposing the Candiac plant to use its patented One-Pot process for the pilot production of LFP CAM, with recommissioning scheduled for third quarter 2023. This move gives Nano One a multiyear head start and a significant competitive advantage in the race to differentiate and commercialize a clean, green and secure North American LFP supply chain.

Dan Blondal, CEO and founder of Nano One, stated: "We look forward to collaborating with ONE and co-developing a robust and economically resilient LFP battery supply chain that is decoupled and environmentally differentiated from the dominance of the overseas market. This is great news for our shareholders and also for our government supporters, and it is another important step forward for Nano One in the process to securing offtakes and monetizing our technology. We want to work with well-funded companies that have the backing of global industry leaders, and the battery technology and production experience to capture significant market share, so it is with great confidence that we are adding ONE to our ecosystem of trusted partners."

ONE began production of its Aries LFP battery pack earlier this year. The company is also building ONE Circle, its first battery cell factory. ONE Circle is a 20-gigawatt-hour battery cell factory that will be located in Van Buren township, Michigan, and begin operation in 2024.

Both ONE and Nano One are confident the companies can work together to meet or exceed stringent industrial validation standards. There is solid alignment and support from governments in the United States and Canada, and each company brings valuable strategic partners and shareholders that include auto OEMs (original equipment manufacturers), multinational critical mineral suppliers and leading chemical companies.

About Nano One Materials Corp.

Nano One Materials is a clean technology company with a patented, scalable and low carbon intensity industrial process for the low-cost production of high performance lithium-ion battery cathode materials. With strategic collaborations and partnerships, including automotive OEMs and strategic industry supply chain companies like BASF, Umicore and Rio Tinto. Nano One's technology is applicable to electric vehicles, energy storage and consumer electronics, reducing costs and carbon intensity while improving environmental impact. The company aims to pilot and demonstrate its technology as turnkey production solutions for licence, joint venture and independent production opportunities, leveraging Canadian talent and critical minerals for emerging markets in North America, Europe and the Indo-Pacific region. Nano One has received funding from SDTC and the governments of Canada and British Columbia.

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