NEO Battery Signs Multi-Year Offtake Agreement for Silicon Battery Materials with North American Drone & UAS Battery Company

Core Insights - NEO Battery Materials Ltd. has signed a multi-year offtake agreement and a Joint Development Agreement with a North American lithium-ion battery company to supply silicon anode materials for high-performance applications [2][3][4] Offtake Agreement - The customer has committed to purchasing a total of 50 tons of NEO's silicon anode materials, specifically NBMSiDE® P-200 and P-300N, over an initial four-year term, with supply expected to start in 2026 [3] - Pricing for the silicon anode materials will be determined based on a mutually agreed structure reflecting raw material and processing costs at the time of supply [3] Joint Development Agreement - The JDA establishes a framework for collaboration where NEO will supply its silicon anodes for evaluation within the customer's battery cells, focusing on enhancing energy density, charging/discharging rates, and power output [4] - Both parties will conduct joint development and optimization of battery performance through field tests in unmanned aerial systems (UAS) and drones [4] Production Expansion - NEO is progressing towards expanding its silicon anode production to 20 tons per year, with plans to scale up to 240 tons per year to meet increasing demand [5] - The company is also exploring leasing a commercial facility to produce high-performance, customized batteries for various applications, including drones and robotics [5] Strategic Goals - The agreements represent a significant milestone in the commercialization of NEO's silicon battery technology, aiming to establish a robust North American battery supply chain [6] - The company aspires to become a leading producer of high-performance battery materials and components for various end-use applications [6][7]