NEO Battery Signs Multi-Year Offtake Agreement for Silicon Battery Materials with North American Drone & UAS Battery Company
TORONTO, Oct. 02, 2025 (GLOBE NEWSWIRE) --
- 50 Metric Ton Multi-Year Offtake Supply Agreement of High-Performance Silicon Battery Material Technology with North American Lithium-Ion Battery Company
- To Jointly Develop and Optimize Lithium-Ion & Lithium-Polymer Battery Products for Unmanned Systems, Drones, and Defense-Related Mobile Systems
- Targeting to Enhance Energy Density, Charging/Discharging Rate Capabilities with Safety, and High Power Output
- Active Progress on 20 TPA Production Scale-Up of Silicon Battery Materials
NEO Battery Materials Ltd. (“NEO” or the “Company”) (TSXV: NBM) (OTC: NBMFF), a low-cost, silicon-enhanced battery developer that enables longer-running, rapid-charging batteries for drones, robotics, and electronics, is pleased to announce the signing of a multi-year offtake agreement (the “Offtake”) and a Joint Development Agreement (the “JDA”) with a North American lithium-ion battery company specializing in performance-intensive, speciality applications, including unmanned systems (UAS), drones, and defense-related mobile systems (the “Customer”).
Under the Offtake, the Customer has committed to a total purchase volume of 50 tons of NEO’s silicon anode materials, NBMSiDE® P-200 and P-300N, over an initial 4-year term. NEO anticipates supplying the initial P-200 and P-300N materials starting in 2026. Annual volumes are subject to production capacity and availability, qualification milestones, and operating deployment needs of the Customer’s products. The price for the silicon anode materials will be determined through a mutually agreed-upon pricing structure based on prevailing raw material and processing costs at the time of each supply.
To reinforce the Offtake supply commitments, the JDA further establishes a collaborative framework in which NEO will supply its P-200 and P-300N silicon anodes for evaluation and validation within the Customer’s lithium-ion and lithium-polymer battery cells. Both parties will jointly develop and optimize battery performance via system-integrated field tests in UAS and drones. The Customer will manufacture battery cells with various chemistries and cell formats, and NEO will iteratively adjust its silicon battery technology based on feedback data. Energy density (Wh/kg), safe charging/discharging rate capability, and power output are key performance metrics to be enhanced for the indicated high-demand electronics.
NEO Battery Materials is progressing with its initiative to expand silicon anode production to 20 tons per year, following the positive validation of recent prototypes and direct demand for high-performance materials from end users. Following 20-ton mass producibility tests and material quality/performance validation, the Company will scale up production to 240 tons per year to meet downstream demand and to support the Company’s in-house battery manufacturing business. As announced, NEO is conducting due diligence to lease an operational, revenue-generating commercial facility to produce high-performance, customized batteries for its drone, UAS, robotics, and automotive pipelines.
“This Offtake and JDA represent another critical milestone in the commercialization of NEO’s silicon battery technology, as we expand into synergistic, revenue-potential verticals of battery design and manufacturing. By partnering with a North American battery company, we are advancing our mission to establish a robust and high-quality North American battery supply chain. For the Western world, our Company aims to become the go-to alternative for high-performance battery materials and components to any end-use application,” expressed Mr. Spencer Huh, President & CEO of NEO.
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, unmanned aerial vehicles (UAV), robotics, unmanned systems, electronics, electric vehicles, and energy storage systems for AI data centers. With a patent-protected, low-cost manufacturing process, NEO Battery enables longer-running and ultra-fast 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. For more information, please visit the Company’s website at: https://www.neobatterymaterials.com/.
On Behalf of the Board of Directors
Spencer Huh
Director, President, and CEO
For Investor Relations, PR & More Information:
info@neobatterymaterials.com
T: +1 (437) 451-7678
This news release includes certain forward-looking statements as well as management's objectives, strategies, beliefs and intentions. All information contained herein that is not clearly historical in nature may constitute forward-looking information. Generally, such forward-looking information can be identified notably by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including but not limited to: volatile stock prices; the general global markets and economic conditions; the possibility of write-downs and impairments; the risk associated with the research and development of battery-related technologies; the risk associated with the effectiveness and feasibility of technologies that have not yet been tested or proven on commercial scale; the risks associated with manufacturing process scale-up, including maintaining consistent material and component quality, production yields, and process reproducibility at a pilot, semi-commercial, or commercial scale; the risks associated with compatibility of existing battery chemistries, formulations, components, or designs; unforeseen risks associated with entering into and maintaining collaborations, joint ventures, or partnerships with battery cell manufacturers, original equipment manufacturers, and various companies in the global battery and downstream, end-user supply chain; the risks associated with the failure to develop and produce commercially viable battery products or that technical goals may not be achieved within expected timelines or budgets under a joint development or collaboration; the risk associated that purchase orders and offtake supply may not be fulfilled in full, on time, or at all, as actual revenue realization depends on delivery schedules, achievement of technical milestones, and customer acceptance testing; counterparty risk upon delivery of commercial products; the risks associated with constructing, completing, securing, and financing commercial battery materials, components, and cell manufacturing facilities including the Windsor and South Korean facilities; the risks associated with supply chain disruptions or cost fluctuations in raw materials, processing chemicals, and additive prices, impacting production costs and commercial viability; the risks associated with uninsurable risks arising during the course of research, development and production; competition faced by the Company in securing experienced personnel and financing; access to adequate infrastructure and resources to support battery materials, components, and cell research and development activities; the risks associated with changes in the technology regulatory regime governing the Company; the risks associated with the timely execution of the Company’s strategies and business plans; the risks associated with the lithium-ion battery industry’s demand and adoption of the Company’s silicon anode and battery technology; market adoption and integration challenges, including the difficulty of incorporating silicon anodes and silicon battery products within battery manufacturers and OEMs systems; the risks associated with the various environmental and political regulations the Company is subject to; risks related to regulatory and permitting delays; the reliance on key personnel; liquidity risks; the risk of litigation; risk management; and other risk factors as identified in the Company’s recent Financial Statements and MD&A and in recent securities filings for the Company which are available on www.sedarplus.ca. Forward-looking information is based on assumptions management believes to be reasonable at the time such statements are made, including but not limited to, continued R&D and commercialization activities, no material adverse change in precursor prices, development and commercialization plans to proceed in accordance with plans and such plans to achieve their stated expected outcomes, receipt of required regulatory approvals, and such other assumptions and factors as set out herein. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in the forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such forward-looking information. Such forward-looking information has been provided for the purpose of assisting investors in understanding the Company's business, operations, research and development, and commercialization plans and may not be appropriate for other purposes. Accordingly, readers should not place undue reliance on forward-looking information. Forward-looking information is made as of the date of this presentation, and the Company does not undertake to update such forward-looking information except in accordance with applicable securities laws.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of theTSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Legal Disclaimer:
EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.
