Mr. Dan Blondal reports

NANO ONE POSITIONED FOR RISING LFP DEMAND, ALIGNED WITH ENERGY STRATEGIES & SUPPORTING CRITICAL MINERAL LOCALIZATION EFFORTS WORLDWIDE

Nano One Materials Corp. has affirmed its strategic vision and market potential for easy-to-permit, rapidly scalable and localized production of lithium-iron-phosphate (LFP) CAM (cathode active material).

Highlights:

• Bloomberg New Energy Finance (BNEF) projects global demand for LFP CAM in regions outside China to grow five times by 2035;
• Nano One aligned with global leaders on critical mineral processing and energy infrastructure investment to prioritize resilient, localized supply chains;
• International Energy Agency (IEA) names Nano One an LFP innovator in 2025 outlook, citing China's grip on iron-sulphate inputs and rising urgency to diversify supply chains.

"There is tremendous market opportunity in LFP," stated Dan Blondal, chief executive officer of Nano One, in a recent video interview, "and the key to capturing market share lies in process innovation. We purpose built our One-Pot process to simplify production and address the very issues the world is now trying to solve -- cost, supply chain bottlenecks, permitting, localization and scale. One-Pot eliminates waste water and dependence on China's iron sulphate, laying a sustainable foundation for easy-to-permit LFP plants that could unlock industrial growth potential in the West. We have vertically integrated precursor and cathode production to position Nano One competitively on the world stage and our design-one-build-many licensing strategy is intended to drive wide-scale adoption, economies of scale and much needed supply chain diversification."

According to BNEF's 2024 CAM market report, global CAM demand is projected to reach 5.9 terawatt-hours by 2035. LFP CAM is expected to capture 52 per cent of market share -- a threefold increase over BNEF's 2021 projections. Although China currently holds approximately 95 per cent of global LFP production capacity, demand in the rest of the world (RoW) is expected to more than double that of China by 2035.

RoW demand for LFP is projected to grow fivefold, driven primarily by electric vehicles (EVs) and battery energy storage systems (BESS). At the same time, governments are streamlining policies to incentivize localization of supply chains and investment in critical mineral refining and processing to meet projected growth.

Under Canada's 2025 G7 presidency, leaders adopted the Global Critical Minerals Action Plan, pledging to catalyze public and private investment in minerals, including through innovation and licensing and to build responsible critical mineral processing capacity across jurisdictions. The plan also emphasized defence, clean energy and digital technologies as key sectors shaping demand and strategic priorities. At the 2025 Canada-European Union Summit, both parties signed joint commitments to co-invest in critical mineral infrastructure, with an emphasis on defence and AI (artificial intelligence) infrastructure localization to enhance resilience and reduce strategic dependencies. Canada also reaffirmed its pledge to meet NATO's (North Atlantic Treaty Organization) new 5 per cent of GDP (gross domestic product) defence spending target by 2035.

These co-ordinated efforts reflect a growing consensus: building a competitive and resilient battery supply chain will require process innovation, co-ordinated investment and speed of execution to reduce dependencies that make the world vulnerable to market volatility and global disruption. The IEA's Global Critical Minerals Outlook 2025 echoed this, naming Nano One among a select group of companies developing alternative methods of producing LFP to reduce dependency on Chinese supply chains.

The IEA outlook also highlighted that iron sulphate is a byproduct of titanium dioxide production where China is the leading producer. As a result, key material inputs are available in China at very low cost, which is difficult to replicate in other parts of the world. China supplies 95 per cent of high-purity manganese sulphate and 75 per cent of battery-grade PPA (purified phosphoric acid) and securing these materials from alternative sources is currently challenging and often comes at a higher cost. These cost premiums will remain unless there are significant efforts to build diversified supply sources for these materials."

"We are honoured to be shortlisted by the IEA as an LFP innovator," said Mr. Blondal, "and we are encouraged by their recognition of the very same supply challenges that we are aiming to address. We are working closely with governments and our clients to debottleneck, derisk and repatriate the LFP supply chain, to fortify our energy security, and to add shareholder value. Thanks to the most experienced LFP production team and the only manufacturing facility outside of Asia, we are currently sampling, demonstrating and collaborating with partners in North America, Europe and the Indo-Pacific. We are targeting first commercial licence agreements to address the imminent need for localized battery materials in the global energy transition by offering a viable, proven solution."

About Nano One Materials Corp.

Nano One Materials is a technology company changing how the world makes cathode active materials for lithium-ion batteries. Applications include stationary energy storage systems (ESS), portable electronics and electric vehicles. The company's patented One-Pot process reduces costs, is easier to permit, and lowers energy intensity, environmental footprint and reliance on problematic supply chains. The company is helping to drive energy security, supply chain resilience, industrial competitiveness and increased performance through process innovation. Scalability is proven and being demonstrated at Nano One's LFP pilot production plant in Quebec -- leveraging 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 design-one-build-many licensing growth strategy -- delivering cost-competitive, easier-to-permit and faster-to-market battery materials production solutions around the world. Nano One has received funding from the government of Canada, the government of the United States, the government of Quebec and the government of British Columbia.

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