Mr. Spencer Huh reports

NEO BATTERY ESTABLISHES COLLABORATION AGREEMENT WITH LOTUS ENERGY TO STRENGTHEN RECYCLED SILICON ANODE INITIATIVE

Neo Battery Materials Ltd. has entered a collaboration agreement with Lotus Energy Recycling -- an Australian-based solar photovoltaic (PV) recycler. The partnership will aid the company's sustainable route to commercialization and supply chain resiliency for input materials.

Neo and Lotus intend to develop a silicon anode product to co-market directly to battery cell, electronics and automotive manufacturers. Both companies will explore joint venture opportunities to establish a North American footprint in silicon recycling. Governmental funding for international cooperation will be applied for in advanced manufacturing and clean technology based on availability and criteria-match.

This agreement further bolsters Neo's pillared strategy to build commercial-level relationships and diversify the silicon upstream value chain. Neo Battery aims to enhance the commercial viability and compatibility of recycled silicon as a reliable raw material source for its silicon anode materials.

Lotus Energy possesses a proprietary recycling know-how to recover solar silicon cells from end-life solar PV cells. The scalable process implements a heat and chemical treatment without the use of hazardous solvents and materials, removing the risk of environmental concern and reducing unnecessary manufacturing costs and overhead. Lotus has consistently achieved high-purity levels of 99.9 per cent plus for its recycled PV nano silicon particles.

Headquartered in Melbourne, Australia, Lotus Energy has deployed several magnitudes of megawatt-hour (MWh) solar projects across the country ranging from commercial and industrial to residential applications. Lotus commenced the value-added PV recycling initiative and is expected to complete scale-up to 3,600 kilograms per year by the end of this year. Subsequently, the production capacity is expected to increase to 120,000 kilograms per year for its Melbourne plant. Lotus Energy intends to construct facilities in Sydney and Germany to supply its high-purity recycled PV nano silicon to various industrial and electronics applications.

Anthony Vippond, co-founder and chief executive officer of Lotus, commented: "We are incredibly excited to be collaborating with Neo Battery Materials. We are aligned in our beliefs of the importance of nano- and micro-silicon applied into batteries, utilizing recycled materials to minimize the impact on the environment. The energy storage industry will see massive advancements and we aim to be part of the team that makes those quantum leaps we seek and all need for renewables to be able to supply base load and peak demand energy."

Spencer Huh, president and CEO of Neo, commented: "This newly added collaboration aligns perfectly with our strategic vision of sustainability, innovation and supply chain resiliency. Following our collaboration with Innox eco-M, this partnership with Lotus will add another layer of depth and intricacy in Neo's research and develop to utilize recycled silicon as the main raw material source. In a study administered by the Korea Photovoltaic Industry Association (KOPIA), approximately 3,000 tonnes and 30,000 tonnes of end-life PV cells will be released in 2027 and 2033, respectively. This fact implies that Neo will be able to secure a large proportion of ESG-friendly [environmental, social and governance] input precursors to diversify away from metallurgical-grade silicon produced from GHG-emitting [greenhouse gas] carbothermic processes."

About Neo Battery Materials Ltd.

Neo Battery Materials is a Canadian battery materials technology company focused on developing silicon anode materials for lithium-ion batteries in electric vehicles, electronics and energy storage systems.

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