Mr. Paul Guedes reports

NANO ONE AND SUMITOMO METAL MINING ADVANCE COLLABORATION ON LFP COMMERCIALIZATION

Nano One Materials Corp. has provided an update on the latest progress with its strategic partner, Sumitomo Metal Mining Co. Ltd. (SMM), an integrated mining, refining and CAM (cathode active materials) manufacturing company, headquartered in Japan and operating globally across 14 countries, supplying international Tier 1 automotive companies and battery cell manufacturers.

Highlights:

• SMM confirms Nano One as a key technology partner as it advances its growth strategy for lithium-iron-phosphate (LFP) cathodes.
• Results from development work and trials, economic modelling and IP (intellectual property) review have been positive, thus giving SMM a high degree of confidence in Nano One's proprietary One-Pot LFP technology.
• Nano One and SMM will now be expanding their collaboration to pursue LFP production opportunities with target strategic customers.

Munekazu Kawata, executive officer, general manager of SMM's battery materials division, said: "We are pleased to share, on behalf of Sumitomo Metal Mining, our high degree of confidence in the One-Pot process for the production of cathode active materials, including lithium-iron-phosphate. We are committed to investing in and offering cost-effective production of CAM to our customers while minimizing energy intensity, waste water and supply chain uncertainty, and this led us to Nano One as a key technology partner in achieving this objective. After much due diligence, we are convinced that its technology is a high-quality, cost-effective manufacturing solution, and we are working closely to expand our collaboration and marketing efforts to jointly address the global shift towards LFP chemistries in the lithium battery sector."

In September, 2023, SMM completed a $16.9-million investment in Nano One and entered into a strategic collaboration agreement with the objective of commercializing Nano One's One-Pot technology. The collaboration has been focused on LFP, including product evaluation, performance testing, economic scenario modelling, extensive intellectual property review as well as process technology trials in Japan. The partnership has further deepened with increased confidence, and, as a result, this progress has now bolstered SMM's conviction in the path toward commercialization.

SMM has a long history in critical minerals mining and refining with approximately $11-billion (U.S.) in sales and over $21-billion (U.S.) in assets (fiscal 2024). SMM is Japan's largest supplier of lithium-nickel-cobalt-aluminum-oxide battery materials, a ternary cathode chemistry and, in the iron phosphate chemistry segment, has in recent years acquired Sumitomo Osaka Cement's LFP cathode plant in Vietnam. It continues to advance and expand its battery materials business to meet the continued global growth of the market. SMM brings Tier 1 supplier experience to the partnership with Nano One, international operating expertise and complementary LFP know-how. It is committed to providing large, secure supplies of LFP cathode materials in markets around the world.

There is now a widely accepted global shift toward LFP as a dominant cathode chemistry, with global projections of 50 per cent of market share in the next decade. This is driven by LFP being the lowest-cost, safest and most durable lithium-ion battery chemistry; with those performance characteristics, LFP batteries can now compete on range with ternary nickel-based chemistry battery materials. The LFP chemistry also benefits from the simpler formulation of the material that can be mass produced with economies of scale, which cannot necessarily be matched by the fragmented nickel-based NMC (nickel-manganese-cobalt) cathode market, where specialized and proprietary formulations limit market share to single-digit percentages.

Alex Holmes, chief operating officer of Nano One, said: "Current market dynamics amplify the strategic value of our technology in enabling the economic localization of cathode materials supply chains. The combined experience and collaboration between Sumitomo Metal Mining and Nano One over the past two years has led us to this significant milestone in our partnership. We continue to execute successfully on our joint objectives, and we are confident our partnership will lead to future commercial production opportunities that will accelerate the adoption of LFP and global supply chain security."

About Nano One Materials Corp.

Nano One is a technology company changing how the world makes cathode active materials for lithium-ion batteries. Applications include stationary energy storage systems (ESSs), portable electronics and electric vehicles (EVs). 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 supporting the drive toward energy security, supply chain resilience, industrial competitiveness and increased performance through process innovation. Production is being piloted and demonstrated in Candiac, Que., drawing on existing plant and decades of commercial lithium-iron-phosphate manufacturing experience. 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 worldwide. 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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