HPQ targets 1.5M Endura+ cell capacity in 2025

Executive Summary

• HPQ Silicon Inc.'s subsidiary, Novacium SAS, has finalized its 2025-2026 production plan for its third-generation (Gen3) engineered silicon-based anode material.
• The company's Lyon, France, facility is confirmed capable of producing approximately two tonnes per year (TPY) of Gen3 material, supporting the manufacturing of up to 1.5 million HPQ Endura+ and/or Novacium-branded 18650 lithium-ion battery cells annually.
• Cell production will be subcontracted to an existing large-scale battery manufacturer to avoid capital expenditure on new facilities, allowing for rapid commercial deployment.

Key Details

• Current Production Capacity: The Lyon facility can produce ~2 tonnes per year (TPY) of Gen3 anode material.
• Cell Output (Current): This material volume supports the production of up to 1.5 million 18650 lithium-ion battery cells annually.
• Manufacturing Strategy: HPQ and Novacium are subcontracting cell production to a large-scale battery manufacturer with existing infrastructure to meet volume requirements, avoiding the need for costly new facility investments.
• Market Context: Comparable 18650 cells with lower energy density and cycle life retail between $4.50 and $8.00 USD per cell; HPQ aims to deliver higher-performance alternatives within this price range.
• Future Expansion Target: Expanding Gen3 anode material production to 50 tonnes per year (TPY) would enable the manufacture of approximately 40 million HPQ Endura+ and/or Novacium-branded 18650 battery cells annually.
• Financing Status: HPQ is in active discussions with prospective public and private financing partners to fund the development and construction of a dedicated 50 TPY pilot plant.
• Project Timeline: The next critical milestone is securing financing, followed by detailed engineering, construction, and commissioning to transition from limited pilot output to industrial-scale commercial production.

Notable Quotes

• "Our ability to produce sufficient material for over a million high-performance battery cells per year is a tangible demonstration of the commercial readiness of our Gen3 technology." — Bernard Tourillon, President and CEO, HPQ Silicon and Novacium SAS.
• "Scaling to 50 tonnes per year marks the bridge from limited pilot output to industrial relevance... With financing and construction of a dedicated plant, we will be positioned to deliver tens of millions of advanced cells annually strengthening our ability to monetize our technology portfolio and pursue North American production opportunities in line with global supply chain priorities." — Bernard Tourillon, President and CEO, HPQ Silicon and Novacium SAS.