Nano One to Receive Additional C$4.3M from the Government of Canada to Advance Battery Material Production for Energy Security & Defence
“Extra C$4.3 M grant fast‑tracks DCS/MES rollout, nudging Candiac capacity toward 800 tpa milestone”
On April 8 2026 Nano One announced an additional C$4.3 million non‑repayable contribution from Natural Resources Canada (NRCan), bringing total NRCan support to C$9.3 million. The funds will reimburse eligible expenses for installing a Distributed Control System (DCS) and Manufacturing Execution System (MES) at the Candiac demonstration plant, plus ongoing third‑party engineering. The scope expansion adds software integration that enables the facility to scale from its current 200 tpa pilot line toward ≥800 tpa (potentially >1,000 tpa) for defence, energy‑storage and automotive markets. Sumitomo Metal Mining continues as an in‑kind technical partner.
- Incremental financing: The grant is non‑dilutive and adds to a sizable existing government funding base (C$12.31 M awarded since Oct 2025). While not a breakthrough capital raise, it directly funds critical automation software that has been a known bottleneck.
- Execution acceleration: DCS/MES implementation shortens the path to commercial‑ready production by improving reliability, cybersecurity and traceability—key for automotive IATF certification. This moves the 800 tpa target forward from an expected H1 2027 window toward earlier 2026‑27 execution.
- Strategic alignment: The funding dovetails with prior U.S. DoD contracts, G7 supply‑chain initiatives and existing partnerships (Sumitomo, Worley). It reinforces Nano One’s positioning as a domestic LFP supplier for defence and grid storage, sectors that are expected to drive near‑term demand.
- Market perception: Because the market already priced in substantial NRCan support, the incremental C$4.3 M is viewed as a positive surprise rather than routine. It reduces execution risk and may prompt short‑term buying pressure.
Overall, the news constitutes a material positive development: it materially improves the likelihood of meeting the 800 tpa scale‑up timeline without diluting shareholders.
Nano One develops the patented One‑Pot™ process for low‑cost lithium‑iron‑phosphate (LFP) cathode active material. The flagship is the Candiac, Québec demonstration plant, currently operating a 200 tpa pilot line with an automated 20 m³ reactor. The strategic goal is to scale this facility to ≥800 tpa (flexible up to >1,000 tpa) for defence, grid‑storage and EV markets, while licensing the technology globally.