Mr. Dan Blondal reports

NANO ONE AWARDED $18 MILLION FROM THE GOVERNMENT OF QUEBEC TO SUPPORT LOW COST, HIGH EFFICIENCY AND CLEANER LFP CATHODE PRODUCTION AT ITS CANDIAC FACILITY

Nano One Materials Candiac, a wholly owned subsidiary of Nano One Materials Corp., has been granted $18-million in financing from the government of Quebec, which includes a $15-million loan from the Ministry of the Economy, Innovation and Energy (MEIE) through its mandated organization, Investissement Quebec, and a $3-million grant from the Ministry of the Environment, the Fight against Climate Change, Wildlife and Parks (MELCCFP), through its Technoclimat program. This funding will enable the continuation of piloting and commercialization of the One-Pot process, in addition to increasing production capacity of the Candiac plant.

Funding highlights:

• $15-million loan from Quebec's Ministry of Economy, Innovation and Energy through its mandated organization Investissement Quebec;
• $3-million grant from Quebec's Ministry of Environment, the Fight Against Climate Change, Wildlife and Parks;
• Funding will be used to support piloting and increase production capacity at the Candiac plant;
• Helps secure over 40 skilled jobs and set the stage for leadership in LFP (lithium iron phosphate), a cathode chemistry first commercialized in Quebec over 20 years ago;
• Government funding supplements $12.9-million (U.S.) grant awarded to Nano One by U.S. Department of Defense on Sept. 30, 2024.

The $15-million loan directly supports approximately $63.4-million of eligible expenditures between Jan. 1, 2023, through Dec. 31, 2026, at Nano One's LFP production facility in Candiac, Que. Nano One estimates $30-million of eligible expenditures have been incurred to date. The loan repayment period begins 60 months after first disbursement and will be repaid over a subsequent 60-month period.

The $3-million grant also reimburses expenses incurred at the Candiac facility and is directed toward a transition to cleaner and more efficient manufacturing.

Dan Blondal, chief executive officer of Nano One, said: "We are grateful to the government of Quebec for its leadership and support of the battery industry and the emerging LFP market and for recognizing Nano One's commitment to piloting and commercializing our technology in the province. We made a pivotal acquisition in Candiac, Que., on Nov. 1, 2022, of North America's only existing LFP production facility and have since integrated its highly experienced team. Candiac is positioned as a centre of excellence to support larger-scale production facilities and a localized supply chain that also reduces the environmental footprint of batteries, and we are delighted to be leading this in Quebec."

The funds apply to some of the expenses incurred during the construction and operation of the company's 200-tonne-per-annum piloting line (which was successfully commissioned in 2023) and for capacity expansion planned at the facility in 2025 and 2026.

Quebec's contributions to Nano One's Candiac facility complement the $12.9-million (U.S.) in non-dilutive funding awarded to Nano One by the U.S. Department of Defense on Sept. 30, 2024, which is similarly directed toward capacity expansion expenses at the Candiac facility. Support from Quebec and the U.S. government accelerates trials, demonstration and commercialization. This support reinforces Nano One and Quebec as leaders in the emerging North American lithium-ion battery supply chain for electric vehicles (EVs), energy storage systems (ESS), and defence applications.

The benefits of One-Pot mainly attribute to the elimination of the iron and phosphate precursor steps (pCAM) by integrating them with the lithium addition step (cathode active material (CAM)), high-efficiency thermal processing and the elimination of sodium sulphate waste water. This has the potential to reduce complexity, costs, footprint and energy intensity compared with incumbent processes. One-Pot-enabled facilities could also be easier to site, permit, construct, operate and be decoupled from foreign supply chains of concern. Depending on energy sources and jurisdiction, there could also be a reduction of GHG (greenhouse gas) emissions by up to 50 per cent compared with incumbent methods of producing LFP CAM, as outlined in a full life-cycle assessment carried out by Minviro in 2023.

"By investing $18-million in the Nano One pilot plant project, we are giving ourselves the means to strengthen Quebec's expertise in the manufacturing of Quebec green batteries. It's with initiatives like these that our government continues to position Quebec as a leader in this sector of the future for our energy transition and our economy," stated Christine Frechette, Minister of the Economy, Innovation and Energy and Minister responsible for Regional Economic Development.

"Our government is proud to support innovative projects like Nano One's, which are part of our commitment to electrifying the economy to achieve our energy transition objectives. This project will help make Quebec a leader in the rapidly expanding battery industry and position it as a global market leader," stated Benoit Charette, Minister of the Environment, Climate Change, Wildlife and Parks.

"Nano One is one of the few manufacturers of LFP-type CAMs in North America, and we are privileged to welcome its pilot plant here in Candiac. This is excellent news for the development of our regional expertise in the battery industry but, above all, for the vitality of our economy in the Monteregie region," stated Christian Dube, Member of Parliament for La Prairie and Minister of Health.

"The establishment of the Nano One pilot plant is a structuring project that will boost Quebec's battery industry thanks to a competitive and very promising technology. Investissement Quebec is proud to support innovative companies like Nano One so that they can reach their full potential while contributing to the development of strategic sectors of our economy," stated Bicha Ngo, president and chief executive officer of Investissement Quebec.

About Nano One Materials Corp.

Nano One is a clean technology company changing how the world makes cathode active materials for lithium-ion batteries. Applications include electric vehicles (EVs), stationary energy storage systems (ESS) and consumer electronics. The company's patented One-Pot process reduces costs, carbon intensity (lower GHGs), environmental footprint and reliance on problematic supply chains. Scalability is proven and being demonstrated at Nano One's LFP (lithium iron phosphate) pilot production plant in Quebec -- the only facility and expertise of its kind outside of Asia. Strategic collaborations and partnerships with international companies such as Sumitomo Metal Mining, Rio Tinto and Worley are supporting a global growth strategy through technology licensing and joint ventures. Nano One has received funding from the government of Canada, the government of the United States and the government of British Columbia. The company is leveraging deep industry expertise and plans to license and deploy cleaner cathode manufacturing plant design packages -- delivering cost-competitive and faster-to-market battery material solutions worldwide.

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