Mr. Spencer Huh reports

NEO BATTERY PARTNERS WITH KOREAN DRONE MANUFACTURER TO DEVELOP & SUPPLY HIGH-PERFORMANCE BATTERY SOLUTIONS

Neo Battery Materials Ltd. has entered a defence partnership through a joint development agreement signed on July 15, 2026, with Assetta Inc., a South Korean drone and aerospace company, to develop and manufacture high performance, non-Chinese battery products for Assetta's current and coming drone platforms.

The partnership represents Neo's first publicly disclosed drone customer and follows positive testing and validation of the company's battery products within the customer's drone systems. The strategic collaborative aim is to fully replace the Chinese-manufactured batteries used in Assetta's platforms today, advancing both companies' commitment to secure reliable supply chains free of foreign entities of concern as defined by the One Big Beautiful Bill Act.

"Following our evaluation, Assetta intends to strategically transition our current drone batteries to Neo's products and to deploy them primarily across our Korean defence contracts and solicitations," said Hyung-Jun Kim, chief executive officer of Assetta. "Within South Korea and Western-allied markets, Neo uniquely provides capabilities of end-to-end battery solutions and high-quality expertise from global battery makers that can flexibly adapt to changes in performance needs to meet the evolving needs of our products."

Assetta develops and manufactures military-grade, lightweight reconnaissance vertical takeoff and landing systems, fibre optic drones in collaboration with LS Cable & System (a subsidiary of the Korean conglomerate, LS Group), and relevant drone components and software. Serving dual-use markets, including precision agriculture, logistics and surveying/mapping, Assetta was recently selected for the Republic of Korea Army's inaugural drone combat challenge to test and evaluate Korean-made unmanned aerial systems and counter-UAS technologies for battlefield deployment.

On a recurring basis, Neo will develop and supply system-specific battery solutions for Assetta's diverse suite of drone platforms. The project aims to deliver optimized products that enhance flight time, payload capacity, energy/power density and overall operational efficiency, with the objective of creating cost-competitive alternatives through FeoC manufacturing. Assetta will conduct field testing and validation to expedite commercial integration of newly developed products.

"This agreement represents an operational advancement for a long-term customer relationship that we intend to scale alongside Assetta's innovations and upcoming production programs," said Spencer Huh, chief executive officer of Neo. "The company is gradually expanding its drone customer pipeline as part of the Korea defence integration strategy. The go-to-market plans are not to form a plain supplier-vendor relationship, but Neo is employing a pro-active approach in jointly collaborating to develop and supply long-range, high-power solutions that directly replace reliance on non-allied technologies."

About Neo Battery Materials Ltd.

Neo Battery Materials is a Canadian-South Korean battery technology company focused on developing and producing silicon-enhanced lithium-ion batteries in drones, robotics, physical artificial intelligence, electric vehicles and energy storage systems. With a patent-protected, low-cost silicon manufacturing process, Neo Battery enables longer-running and ultrafast-charging properties and provides end-to-end battery solutions from material selection, cell architecture and process optimization. The company aims to be a globally leading producer of high performance lithium-ion batteries and materials, building a secure, robust battery supply chain for Western manufacturers.

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