Nano One Materials' 2024 in Review: Cathode Innovator Makes Strides in Commercialization & Secures Key Partnerships & Government Backing

About Nano One Materials

Nano One Materials (TSX: NANO) is a Canadian clean technology company that has developed innovative processes for producing low-cost, high-performance cathode materials used in lithium-ion batteries. Nano One's One-Pot process streamlines the cathode manufacturing process, while their M2CAM technology enables the use of sulfate-free metals, eliminating wasteful byproducts. In 2024, Nano One made significant strides in commercializing its technology through strategic partnerships, government support, and the expansion of its production capabilities.

Corporate Developments

• Partnership with Worley: Nano One partnered with global engineering firm Worley to create a standard plant design that packages Nano One's process, equipment, and intellectual property. This modular plant setup reduces costs and enables rapid deployment via licensing to cathode manufacturers.
• Licensing model: Nano One is pursuing a licensing model for its technology. Licensees will pay an upfront fee to cover engineering and design, followed by ongoing royalties based on production volumes. This capital-efficient approach allows Nano One to commercialize globally without the intensive capex of building its own plants.
• Leadership additions: Nano One strengthened its leadership team and advisory board, adding executives and advisors with significant combined experience in cathode manufacturing, business development, and capital markets. latterly in Q4 Anthony Tse joined as Chair of the Board of Directors - a seasoned executive with nearly 30 years of experience in high-growth tech industries, including 15 years in the energy transition sector. As former CEO of Galaxy Resources, he transformed the company into a top 5 global lithium producer (now part of Arcadium), and brings extensive experience in strategy, M&A, and corporate finance across multiple continents, along with current board positions at Li-Cycle, Li-Metal, and Minviro.
• Patent Approval: In 2024, Nano One significantly expanded its patent portfolio with 11 new patents, including 7 recently issued/allowed patents across multiple jurisdictions (Japan, India, Taiwan, US, and China), bringing their total to 48 patents globally with 56+ pending applications. The new patents cover innovations in battery assembly, cathode material formation, M2CAM® technology, kiln design, and coating processes for their One-Pot manufacturing system

Operational Progress

• LFP focus: Nano One is initially targeting the production of lithium iron phosphate (LFP) cathodes, which offer the lowest cost, best safety and long lifetimes. The company sees LFP as well-suited for mass market EVs, energy storage, and industrial applications.
• Candiac facility expansion: Nano One's cathode production facility in Candiac, Quebec is undergoing expansion from 200 tpa to 1,000+ tpa of LFP cathode material using its One-Pot process. This sole LFP plant in North America will serve to derisk scale-up and train future licensees.
• Government support: Nano One secured $18M  from the Government of Quebec to expand its LFP production and R&D facilities in Candiac and Burnaby. The company also received $12.9M rom the US Department of Defense to support North American LFP production using its technology
• Third-party validation: Nano One is sending LFP samples produced with its One-Pot process out to third parties for qualification, targeting customers across the ESS, defense, industrial, and automotive sectors.

Financial Performance

• Revenue model: Nano One is pursuing diversified revenue streams including licensing fees, production royalties, potential joint ventures, and independent manufacturing. The company aims to leverage its patents and know-how while minimizing capital intensity.
• Government funding: In addition to the CAD$18 million secured from Quebec Government and the US$12.9 million US Department of Defence in 2024, Nano One has received over CAD$20M in non-dilutive and non-repayable government funding from Canada, BC and Quebec since 2014. This support validates the strategic importance of Nano One's technology.
• Cash position: As of Q3 2024, Nano One had a cash balance of +CAD$13M to fund its ongoing expansion and R&D efforts since which time it has also received Government of Quebec funding.

2025 Outlook

Looking ahead, Nano One is well-positioned to benefit from the rapid growth of the lithium-ion battery market driven by the global transition to EVs and renewable energy. The company's technology addresses key pain points of cost, complexity, and environmental footprint in cathode production.

Key potential catalysts for 2025 include:

• Completion of the Candiac facility expansion and third-party qualification of LFP
• Signing of initial licensing agreements for the One-Pot process with cathode producers
• Expansion of partnerships across the battery supply chain and OEMs
• Advancement of next-generation cathode technologies beyond LFP (NMC, LNMO, etc.)
• Continued support from government and strategic investors

Conclusion

2024 was a pivotal year for Nano One Materials as it made tangible progress towards the commercialization of its innovative cathode manufacturing technology. With a differentiated, IP-protected process, strategic partnerships in place, and a capital-efficient business model, Nano One is well-positioned to be a key player in the rapidly growing battery supply chain. As the world accelerates its transition to electrification, Nano One offers a compelling way for investors to gain exposure to this megatrend.