Nano One Charges Up Production of Low-Cost, Eco-Friendly Battery Materials

• Nano One reported significant progress in 2024 as it ramps up production of lithium iron phosphate (LFP) cathodes.
• LFP demand surged due to its advantages in cost, safety and suitability for electric vehicles and grid storage, now over 50% of cathode market.
• Nano One's patented One-Pot manufacturing process enables major reductions in cost, 30% cost savings and 80% less energy/water use.
• Strategic partnerships and a modular plant design support Nano One's production expansion and technology licensing plans.
• With $40M in government funding to draw and near-term revenue pathways, Nano One is well-positioned to capitalize on booming LFP demand.

Nano One Materials Corp. (TSX:NANO) is a Canadian battery materials company that has developed a patented One-Pot process for the low-cost, environmentally-friendly production of high-performance cathode materials used in lithium-ion batteries. Nano One's mission is to change how the world makes battery materials and establish itself as a leading cathode producer and process licensor.

The company is headquartered in Burnaby, British Columbia and operates its LFP production facility in Candiac, Québec. As of early 2025, Nano One has 48 patents issued and 56 pending related to its battery material production technologies and processes.

Surging Demand for LFP Cathodes

The global battery market experienced strong growth in 2024, driven by increasing adoption of electric vehicles (EVs) and energy storage systems (ESS). EV sales rose 25% to 17.1 million units, while ESS installations grew 53% to 205 gigawatt-hours.

Lithium iron phosphate (LFP) chemistries in particular saw rapid growth due to their advantages in cost, safety and lifetime. LFP's global cathode market share reached 56% in 2024, surpassing nickel-based chemistries. In the ESS segment, LFP accounted for over 95% of deployed capacity. Chairman Anthony TSE commented:

"The battery market saw strong growth in 2024, driven by electric vehicle & energy storage demand. China remained the leading market, but North America and Europe are poised for accelerating demand as they build out EV fleets and modernize electrical grids."

Nano One's Competitive Advantages

Nano One has developed a patented One-Pot process for producing LFP and other cathode materials that offers significant cost and environmental advantages over traditional methods. A 2024 cost comparison study with engineering partner Worley found that Nano One's process delivers 30% savings in capital and operating costs, an 80% reduction in energy and water use, 50% lower GHG emissions, and complete elimination of wastewater. CEO Dan Blondel stated:

"Nano One is uniquely positioned to meet surging demand for cathode materials with our One-Pot process."

The company's technology was designed for efficient, modular deployment, with minimal permitting requirements. This allows Nano One to rapidly scale production at its facilities and license its process to partners worldwide.

Nano One grew its patent portfolio to 48 patents issued globally in 2024, with over 56 pending. The company's intellectual property covers innovations in cathode materials, production processes, scale-up methods and battery recycling.

Government Funding & Strategic Partnerships

Nano One secured significant funding from the Canadian and US governments in 2024 to support its LFP production expansion. Highlights included $18 million from the Québec government, US$12.9 million from the US Department of Defense, and C$2.8 million from Next Generation Manufacturing Canada. The company also added $5 million in non-dilutive capital from a land sale.

These investments reinforce Nano One's role in building a North American LFP battery supply chain that is independent from China. Chinese firms currently dominate the LFP market, but proposed export restrictions on cathode materials and processing technology have increased the urgency for localized production in North America and Europe.

On the commercial front, Nano One initiated a partnership with global engineering firm Worley to jointly design, market and license modular LFP production plants using Nano One's One-Pot process. The company aims to leverage Worley's relationships and expertise to accelerate the worldwide deployment of its technology.

Expansion Plans & Revenue Pathways

Nano One is expanding LFP production capacity at its Candiac facility and advancing towards commercial sales. The company plans to complete engineering and launch a project to reach over 1,000 tons per annum output.

In parallel, Nano One is working with Worley on a standard plant design and equipment package for 25,000 tonne per annum LFP production. This will serve as the basis for licensing Nano One's One-Pot process to partners worldwide, providing a nearer-term pathway to revenue and growth alongside Nano One's own production expansion.

The company aims to draw down approximately $40 million in previously announced government funding in 2025 to support these initiatives. Nano One also continues to pursue additional non-dilutive funding opportunities and is advancing its M2CAM (metal to cathode active materials) technology for nickel-based cathodes with other partners.

For Investors

With leading low-cost production technology, a growing patent portfolio, and government-supported expansion plans, Nano One Materials is well-positioned to be a key player in the rapidly growing LFP battery materials market. The company's One-Pot process provides a unique cost and sustainability advantage as EV and energy storage demand accelerates LFP demand outside China.

Investors should watch for Nano One to announce new sales agreements, technology licensing deals, and production capacity expansions in the coming quarters as it executes on its near-term revenue and growth strategy. The company's partnerships with established players like Worley should help accelerate global deployment of its One-Pot LFP technology.

While Nano One will face competition from Chinese LFP giants and other emerging players, the company's patented One-Pot process and modular production strategy provide key advantages in cost, efficiency and scalability. If Nano One can successfully ramp up its own production while signing new technology licensing deals, it could deliver significant growth in the years ahead.

As with any pre-revenue technology company, investors should be aware of risks related to scale-up, customer adoption and potential delays. However, Nano One's recent progress and government backing indicate the company is on track to be a leading player in the LFP battery material space. As global demand for clean, affordable battery materials continues to grow, Nano One presents an attractive opportunity for investors to gain exposure to this key sector.