NEO Battery and NBM Korea Enters into Definitive Lease Agreement for Operational Battery Electrode Manufacturing Facility

Executive Summary

• NEO Battery Materials Ltd. and its South Korean subsidiary have entered into a definitive three‑year lease for an operational battery electrode manufacturing facility in the Gimje Free Trade Zone, Korea.
• The leased asset includes megawatt‑hour scale lithium‑ion battery electrode production equipment, enabling immediate commercial‑scale manufacturing of silicon‑enhanced electrodes.
• The agreement provides NEO with rapid market entry and capacity expansion while avoiding the capital outlay and construction risk of building a new plant.

Key Details

• Lease Parties: NEO Battery Materials Ltd./NBM Korea Co., Ltd. (lessee) and ENPLUS Co., Ltd. (lessor).
• Facility Location: Gimje Free Trade Zone, South Korea.
• Asset Leased: Megawatt‑hour lithium‑ion battery electrode production equipment, plus associated office, warehouse, and auxiliary infrastructure.
• Term: Initial three‑year term with a right of first refusal to renew under identical terms.
• Consideration: Cash settlement via lump‑sum security deposit and monthly lease payments (specific amounts confidential).
• Purpose – Initial Production: Supplying battery electrodes to existing major automotive OEMs and downstream manufacturers.
• Future Adaptation: Facility will be reconfigured to produce custom silicon‑enhanced electrodes for new clients in drones, robotics, and electronics.
• Strategic Impact: Provides immediate commercial‑scale capacity, expected to double output within months through extended shifts and automation; accelerates NEO’s transition from technology development to production.
• CEO Quote: “Our entry into this operating electrode manufacturing facility marks an inflection point for the Company… avoiding capital intensity, removing construction risk, and immediately manufacturing high‑quality battery products.”

Notable Quotes

• Spencer Huh, President & CEO: “Our entry into this operating electrode manufacturing facility marks an inflection point for the Company, meaningfully advancing our transition into a production‑ready battery company. This lease arrangement has allowed us to avoid the capital intensity associated with new plant builds, remove multiple quarters of construction and commissioning risk, and immediately manufacture high‑quality battery products using NEO's proprietary technology and know‑how.”