Nano One Provides Corporate Update

Executive Summary

• Nano One outlines its 2026 strategic objectives, emphasizing the move toward first commercial LFP cathode material sales from its Candiac demonstration plant by end‑2026.
• The company reports a recent $7 million equity raise (gross proceeds) plus a $5 million NRCan grant, bringing total non‑dilutive capital secured since 2024 to over $63 million and cash on hand to $25.8 million as of Dec 2025.
• Nano One is advancing its “Design‑One‑Build‑Many” licensing model, targeting completion and market launch of a commercial‑ready One‑Pot LFP CAM Package in the first half of 2026.

Key Details

• Market Context – Global LFP demand now represents ~50 % of all lithium‑ion cell chemistries; North America is a fast‑growing region with projected U.S. LFP capacity rising from ~180 GWh (2024) to ~290 GWh (2025), requiring >600,000 t/yr of LFP cathode material.
• Candiac Facility – Pilot line (~200 tpa) already operational for sampling and small‑scale sales; Demonstration line being upgraded to ~800 tpa capacity, targeted for commissioning H1 2027. First commercial off‑take agreements (defence & energy‑storage) are expected by end‑2026.
• Licensing Strategy – “Design‑One‑Build‑Many” approach includes a ready‑to‑license One‑Pot LFP CAM Package (ISBL design, class‑3 cost estimate, preliminary process design package, vendor quotes). Marketing slated for H1 2026.
• Partnerships – Ongoing collaborations with Sumitomo Metal Mining (technology commercialization), Rio Tinto (lithium carbonate supply), Worley Chemetics/Worley Comprimo (process design & engineering), and Arkansas Lithium Technology Accelerator (U.S. plant opportunities).
• Financing Activity – December 2025 equity financing raised $7 million gross; additional $5 million NRCan grant awarded for Candiac expansion. Total undrawn government funding available: $25.8 million (as of Dec 2025). ATM program used modestly as a low‑cost liquidity source.
• Government & Policy Support – Canadian Minister of Energy & Natural Resources publicly endorses Nano One’s role in domestic battery supply chain resilience; U.S. NDAA (2025) and 45X tax credit create demand for locally produced LFP cathodes, aligning with Nano One’s target markets.
• Strategic Objectives for 2026 –
• Advance customer qualifications at Candiac to secure initial commercial sales & multi‑year purchase commitments.
• Finalize and market the CAM Package for licensing; continue technology‑only license negotiations.
• Maintain capital discipline while leveraging non‑dilutive funding sources to support scale‑up.

Notable Quotes

• Alex Holmes, President & CSO: “Candiac is a stepping stone to first revenue… targeting initial commercial LFP supply agreements for defence and energy‑storage applications by the end of 2026.”
• Dan Blondal, CEO: “We have laid the groundwork…and we are focused on execution, converting target customer engagement into commercial sales of product and technology and building a recurring revenue base through licensing and royalties.”
• Carlo Valente, CFO: “This financing complements our non‑dilutive sources… As of December 2025, the Company had $25.8 million in undrawn government funding available.”

Materiality Assessment: Material – Positive (the release provides forward‑looking information on revenue generation, production scaling, and significant financing that could materially affect shareholder value).