Mr. Spencer Huh reports

NEO BATTERY PARTNERS WITH VC-BACKED LFP STARTUP, NASCENT MATERIALS INC., TO DEVELOP HIGH-PERFORMANCE LITHIUM-ION BATTERIES FOR DEFENSE DRONES AND AI ENERGY STORAGE SYSTEMS

Neo Battery Materials Ltd. has entered into a joint product development agreement (JPDA) with Nascent Materials Inc., a United States-based advanced materials technology company specializing in the development and production of high performance lithium-iron-phosphate (LFP) cathode materials for lithium-ion batteries.

Through the JPDA, Neo and Nascent will jointly design and develop high performance lithium-ion batteries by integrating Neo's silicon anode materials with Nascent's proprietary LFP cathode materials. The collaboration will target two application-specific battery systems: (i) high-energy-density batteries for defence drone systems; and (ii) energy storage systems (ESS) for AI (artificial intelligence) data centres and power grid storage.

For the defence drone battery project, Neo and Nascent will develop low-cost, lightweight and energy-dense batteries designed to extend the range and mission capability of unmanned aerial vehicles (UAVs), overcoming the limitation of LFP integration in current lithium batteries. In parallel, the energy storage initiative will focus on developing a durable, large-capacity battery system capable of supporting the increasing power demands of AI data centres and modern power grids. Both projects aim to deliver batteries that combine longer operational times, faster charging rates and enhanced safety.

Building out the U.S. and North American battery supply chain, Nascent specializes in developing advanced cathode materials, including LFP and lithium manganese iron phosphate (LMFP) compositions. Nascent employs a patented precursor-cathode-active-materials-free thermo-fusion synthesis process -- a proprietary manufacturing technology designed to lower production costs and enhance material safety.

"Our collaboration with Neo Battery represents a critical step toward integrating next-generation anode and cathode technologies that redefine what is possible in lithium-ion performance," said Chaitanya Sharma, chief executive officer of Nascent Materials. "By combining Neo's silicon-based anode innovation with our proprietary LFP and LMFP cathode technologies, we are enabling a new class of batteries that unite high energy density, rapid charge rates and exceptional safety -- essential for defence, drone and AI energy storage applications. This partnership underscores our shared commitment to reshoring advanced battery manufacturing in North America and accelerating the electrification of critical industries."

About Nascent Materials Inc.

Nascent Materials develops advanced manufacturing technologies to produce cost-effective, high-performance cathode materials for lithium-ion batteries. Headquartered in Newark, N.J., and backed by top-tier investors, the company's mission is to strengthen the U.S. battery supply chain through breakthrough innovation in materials science.

About Neo Battery Materials Ltd.

Neo Battery Materials is a Canadian battery technology company focused on developing and producing silicon-enhanced lithium-ion batteries in drones, UAVs, robotics, unmanned systems, electronics, electric vehicles and energy storage systems for AI data centres. With a patent-protected, low-cost manufacturing process, Neo Battery enables longer-running and ultrafast-charging batteries and provides end-to-end battery solutions from materials selection, cell architecture and process optimization. The company aims to be a globally leading producer of high performance lithium-ion battery components and materials, building a secure, robust battery supply chain in North America.

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