Neo Battery receives $4.5-million purchase order

Mr. Spencer Huh reports NEO BATTERY SECURES $4.5 MILLION PURCHASE ORDER FOR HIGH-PERFORMANCE SILICON BATTERY SOLUTIONS FROM ASIAN DRONE MANUFACTURER Neo Battery Materials Ltd. has received its first, multiyear purchase order valued at $4.5-million and secured a joint development agreement for high performance battery products with an Asian manufacturer specializing in artificial-intelligence-powered mission flight control systems for drones and unmanned aerial vehicles. Neo's silicon-enhanced battery products will deliver industry-leading capacities, safety-reinforced power output and overall weight reduction to enhance flight time, payload capacity and mission operability. "We are highly pleased to announce this milestone for Neo's high performance silicon battery development initiative for defence and industrial drone/UAVs," commented Spencer Huh, president and chief executive officer of Neo. "With our team from the globally largest battery manufacturers and a proven track record of commercializing complex battery products, we aim to build a secure supply chain outside of China to become a Tier 1 battery solution vendor for U.S., European and Asian drone/UAV manufacturers." Under the JDA, Neo Battery will design and manufacture two advanced battery products tailored to the customer's drone/unmanned aerial vehicle systems. The first product will incorporate the P-200 silicon anode series to produce high-capacity, high-power-output batteries designed for short-duration, combat drone missions. The second product will leverage the P-300N silicon series for industrial and surveillance UAVs, enabling extended flight-time capabilities and heavier payload capacities. Structured in a three-phased development, Neo shall deliver: (i) robust capacity retention and safety at high discharge/output rates; and (ii) high energy density exceeding 350 watt-hours per kilogram, representing a more-than-40- to 59-per-cent increase compared with conventional drone batteries of 220 to 250 Wh/kg. The customer will perform system-level integration of developed battery solutions and conduct rigorous, advanced field trials for final commercial deployment. The customer has accordingly committed to a three-year purchase order of the two advanced silicon-enhanced battery products, valuing the total purchase commitments to $4.5-million. Revenues are expected to be realized upon the completion of agreed JDA objectives and the delivery of commercial battery products. The customer intends to integrate Neo's silicon battery products into drone and UAV systems supplied to Asia Pacific industrial companies and governmental agencies, including South Korean and Indian military operations. 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, robotics, unmanned systems, electronics, electric vehicles and energy storage systems for artificial intelligence data centres. With a patent-protected, low-cost manufacturing process, Neo Battery enables longer-running and ultrafast-charging batteries, and provides end-to-end battery solutions from material 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. We seek Safe Harbor.