Mr. Spencer Huh reports

NEO BATTERY MATERIALS TO ESTABLISH CANADA'S FIRST SILICON ANODE FACILITY ON 8 ACRES IN WINDSOR, ONTARIO

Neo Battery Materials Ltd. entered into a definitive lease agreement on Dec. 20, 2024, with the City of Windsor in Ontario, securing eight acres of surplus lands at Windsor Airport. This significant milestone marks a critical step toward establishing Canada's first advanced silicon anode manufacturing facility, further solidifying Neo's role in strengthening the Canadian battery value chain.

Advancing Canada and Ontario's battery ecosystem

Located in one of Canada's key automotive and battery hubs, Neo will lease eight acres, or 350,000 square feet, to construct a commercial plant capable of producing 5,000 tonnes of silicon anodes annually. Initially planning to invest $69-million, Neo expects to invest approximately $120-million in total over the next eight years for future expansion of the Windsor facility and value-added projects. The investment is expected to create over 100 skilled jobs when fully operational. Neo's facility is expected to play a pivotal role in reducing reliance on imported materials and enhancing the resilience of the burgeoning battery supply chain in Ontario and across North America.

With an initial term of 49 years, the agreement includes tax incentives and favourable lease terms compared with market rates, reflecting Windsor's commitment to fostering economic growth and innovation in battery technology. Through a community improvement plan, Windsor City Council has approved, in principle, a grant for Neo Battery Materials to support its establishment and operations. Neo's decision to establish its first North American manufacturing facility in Windsor underscores the company's confidence in the region's infrastructure, work force and business-friendly environment.

Drew Dilkens, Mayor of the City of Windsor and board chair of Invest WindsorEssex, commented: "Today's announcement is a testament to Windsor's strategic location, skilled work force and leadership in the automotive and EV [electric vehicle] industries. Neo Battery Materials' decision to invest in our city highlights our ability to attract forward-thinking companies that drive innovation and create opportunities for our community. As the automotive and automobility capital of Canada and one of the most important communities to watch in the province and country, we are excited to welcome Neo to Windsor and look forward to the positive impacts, including job creation, this investment will bring to our region."

Joe Goncalves, vice-president of investment attraction and strategic initiatives at Invest WindsorEssex, expressed: "We are thrilled to welcome Neo Battery Materials to Windsor-Essex, a testament to our region's strategic location and prominence as a global leader in next-generation vehicle production and battery manufacturing. We are proud to support Neo Battery Materials in establishing their innovative operations here and look forward to their continued growth and impact in our community."

"The execution of the agreement represents a transformative milestone for Neo Battery Materials and the Canadian and Ontario battery ecosystem," stated Spencer Huh, director, president and chief executive officer of Neo. "We are proud to be establishing Canada's first advanced silicon anode manufacturing facility, enabling us to address the increasing demand for high performance and cost-effective battery technologies. With a significant investment in the Windsor community, Neo will further bolster Ontario's clean-tech sector and strengthen Canada's growing leadership in the battery supply chain."

Tom Schnekenburger, director of research partnerships at the University of Windsor, commented: "Creating a thriving innovation ecosystem in Windsor-Essex comes from collaborations with teams like Neo Battery Materials. These projects are crucial to developing a world-class talent pool and critical to advancing R&D [research and development] and material discovery."

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. 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.

We seek Safe Harbor.