Mr. Spencer Huh reports

NEO BATTERY MATERIALS PROVIDES COMMERCIALIZATION UPDATE ON WINDSOR SILICON ANODE MANUFACTURING PLANT

Following the Windsor, Ont., lease and investment announcement on Jan. 24, 2025, Neo Battery Materials Ltd. has discussed advancements in its commercialization efforts of Canada's first advanced silicon anode manufacturing facility.

• Initiated due diligence through phase I environmental site assessment (ESA):
  • Dragun Corp. commissioned to conduct ESA to identify potential areas of environmental concern (AEC);
  • Phase II ESA and remedial action to be undertaken when AECs identified.
• Discussions in process to select potential contractors and construction companies for Windsor plant;
• Windsor silicon anode plant to reduce reliance on imported material, encourage Canada's battery technology innovation and support region's economic development.

Site due diligence and precommercialization activities under way

To ensure the site is suitable for development, Neo Battery Materials has initiated due diligence by commissioning a phase I environmental site assessment (ESA) for the eight-acre site located in the Windsor Airport South Industrial Park. Dragun, an experienced environmental consulting firm, is conducting this assessment, which will include a review of potential areas of environmental concern (AEC) within and adjacent to the site.

Assessment components involve regulatory file reviews related to certain environmental permits, notifications and enforcement actions as part of the phase I ESA. If AECs are identified, a phase II ESA may be undertaken to determine soil and/or groundwater impact, and subsequent remediations will be taken to achieve compliance with environmental laws and standards.

In parallel, the company is prequalifying potential contractors and construction companies for the project. Discussions are under way to select partners who can meet the technical, regulatory and timeline requirements for the silicon anode plant construction. Neo remains committed to successfully completing the due diligence process and advancing construction preparations. Contractor selection and site progress updates will be provided as each activity is completed.

Windsor: home to Canada's first silicon anode manufacturing plant

The Windsor plant will contribute to the company's efforts to advance high-performance, sustainable battery materials technology for Canada and North America. The project includes establishing a manufacturing facility to produce 5,000 tons of silicon anode materials annually, with plans for value-added, battery-related projects. This initiative aims to reduce reliance on imported battery materials while supporting the region's economic development through job creation and investment.

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.

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