Mr. Spencer Huh reports

NEO BATTERY MATERIALS AWARDED AS CONSORTIUM PARTNER IN $20M RECYCLED SILICON BATTERY PROJECT BY SOUTH KOREAN GOVERNMENT

Neo Battery Materials Ltd. has been awarded as a consortium partner along with major battery value chain companies and universities in a $20-million recycled silicon battery project organized by the South Korean Ministry of Trade, Industry and Energy.

In a project titled "Recycled Silicon-Based High Energy Density Electrode Manufacturing Technology Development," the South Korean Ministry of Trade, Industry and Energy and the Korea Evaluation Institute of Industrial Technology will invest approximately $20-million in government contributions for the next five years in consortium partners.

With Hansol Chemical, a leading South Korean chemical material company, as the head project organization, several major battery and chemicals companies are participating as consortium partners, including South Korea's largest cathode material producer, Innox eco-M (Neo's recycled silicon collaborator), and LiBEST.

The project will focus on developing high performance silicon anode materials based on recycled silicon scrap from semiconductor and photovoltaic wafer manufacturing. Consortium partners recognize that solving the limitations of waste materials is critical to achieving price and technological competitiveness for silicon anodes and strengthening sustainability in the lithium-ion-battery industry.

Neo Battery will act as a downstream value chain participant. Using recycled silicon inputs optimized with low-cost technologies, Neo Battery will jointly develop silicon anode materials with consortium partners to manufacture high-content silicon anode batteries. This project directly advances the company's strategic plan to secure low-cost, high performance silicon feedstock.

Spencer Huh, director, president and chief executive officer of Neo Battery, commented: "Neo Battery Materials is highly pleased to be a consortium partner in this key project organized by the South Korean federal government. Along with major battery industry players, we are confident in developing low-cost silicon anode materials to attain material circularity and supply chain resiliency. With approximately 900 tons of waste silicon produced annually in South Korea, all consortium partners are motivated to develop effective technologies to recycle and reuse all waste generated moving forward."

About Neo Battery Materials Ltd.

Neo Battery is a Canadian battery material technology company focused on developing silicon anode materials for lithium-ion batteries in electric vehicles, electronics and energy storage systems. With a patent-protected, low-cost manufacturing process, Neo Battery enables longer-running and ultrafast-charging batteries compared with existing state-of-the-art technologies. The company aims to be a globally leading producer of silicon anode materials for the electric vehicle and energy storage industries.

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