Mr. Spencer Huh reports

NEO BATTERY MATERIALS AND SPECIALTY AUTOMOTIVE BATTERY CELL MANUFACTURER SIGN JOINT DEVELOPMENT AGREEMENT FOR SILICON-ENHANCED BATTERY TECHNOLOGY

Neo Battery Materials Ltd. has formed a joint development agreement (JDA) with a North American battery cell manufacturer (JDA partner) effective Nov. 30, 2024. This collaboration aims to develop and enhance the performance of silicon anode materials for specialty electric automotive and mobility applications. There are no material terms or considerations as part of this JDA.

Under the terms of the JDA, Neo will supply its proprietary polymer-coated silicon anode materials to the JDA partner for integration into its lithium-ion battery cells. The collaboration will proceed through a structured, multiphase approach in which Neo's silicon anodes will be modified and optimized according to the scale-up of battery cell sizes and formats. This systematic progression is designed to rigorously evaluate and enhance the silicon anode electrochemical performance within the JDA partner's proprietary cell architecture.

Spencer Huh, director, president and chief executive officer of Neo, commented: "This partnership represents our first joint development agreement and milestone with the downstream supply chain. By collaborating with this battery cell manufacturer, we aim to execute our silicon anode commercialization plans in a timely and efficient manner, thereby contributing to the advancement of electric mobility solutions. Moreover, Neo and JDA partner intend to strengthen the North American battery supply chain, diversify the concentration of the supply chain and reduce overall battery costs."

This agreement underscores Neo's dedication and strategy to forming strategic partnerships that drive innovation and commercialization in the battery industry. Furthermore, the company is finalizing the land lease agreement with a Canadian municipality to pursue the construction and development of Neo's North American silicon anode plant. The North American battery supply chain is anticipated to become a rising powerhouse, with cell production exceeding 1.2 terawatt-hours annually by 2030 from 300 gigawatt-hours in 2024.

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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