NEO Battery Signs Multi-Year Offtake Agreement for Silicon Battery Materials with North American Drone & UAS Battery Company

Executive Summary

• NEO Battery Materials signed a multi‑year off‑take agreement for up to 50 metric tons of its silicon anode materials (NBMSiDE® P‑200 and P‑300N) with a North American lithium‑ion battery company focused on unmanned systems, drones and defense applications.
• The agreement is paired with a Joint Development Agreement (JDA) that will see the customer evaluate and integrate NEO’s silicon anodes into its lithium‑ion and lithium‑polymer cells, with joint testing to improve energy density, charge/discharge rates and power output.
• NEO announced progress toward scaling production to 20 TPA this year, with a roadmap to reach 240 TPA after successful mass‑production tests, supporting the off‑take commitments and future in‑house battery manufacturing.

Key Details

• Off‑take Volume: 50 metric tons over an initial four‑year term.
• Materials Supplied: NBMSiDE® P‑200 and P‑300N silicon anode products.
• Supply Start Date: First shipments of P‑200 and P‑300N expected in 2026, subject to production capacity, qualification milestones and customer deployment needs.
• Pricing: To be set via a mutually agreed pricing structure based on prevailing raw material and processing costs at the time of each supply.
• Joint Development Agreement (JDA):
• NEO will provide silicon anodes for evaluation in the customer’s lithium‑ion and lithium‑polymer cells.
• Collaborative field tests in unmanned aerial systems (UAS) and drones to iteratively improve battery performance.
• Key performance targets: higher energy density (Wh/kg), faster safe charging/discharging rates, and increased power output.
• Production Scale‑Up:
• Current initiative to reach 20 tons per year of silicon anode production following successful prototype validation.
• Planned expansion to 240 tons per year after mass‑production tests and quality validation.
• Ongoing due diligence to lease a revenue‑generating commercial facility for high‑performance, customized battery manufacturing (drone, UAS, robotics, automotive pipelines).
• Strategic Impact: The off‑take and JDA provide a tangible revenue stream and validate NEO’s technology in high‑performance defense‑related applications, advancing its goal of establishing a North American supply chain for silicon‑enhanced batteries.

Notable Quotes

“This Offtake and JDA represent another critical milestone in the commercialization of NEO’s silicon battery technology… 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.” – Spencer Huh, President & CEO, NEO Battery Materials Ltd.