Nano One Materials: Powering the Battery Revolution with Cleaner, Cheaper Cathode Technology

• Nano One Materials has a unique process to improve the manufacturing of lithium-ion battery cathode materials
• The process reduces cost, complexity, energy intensity and environmental footprint by eliminating wastewater
• Nano One is partnering with Worley to design modular plants that can be licensed and deployed globally
• The company is targeting lithium iron phosphate (LFP) as its first commercial product to address the electric vehicle and energy storage markets
• Nano One has received investments and support from the U.S. Department of Defense, Canadian government, and Quebec to advance its technology and production

About Nano One Materials

Lithium-ion batteries are critical to the global transition to clean energy and electrified transportation. However, current methods for manufacturing the key cathode materials used in these batteries face challenges in cost, complexity, and environmental impact, especially when production is concentrated in Asia. Nano One Materials, a Canadian company, has developed an innovative process, 'One-Pot', to streamline cathode production and make it viable in North America and Europe. This patented process represents a significant departure from conventional manufacturing methods, offering reduced costs, lower carbon emissions, and decreased environmental impact while minimizing dependence on complex supply chains.

Unlike traditional cathode production facilities concentrated in Asia, Nano One has established North America's only specialized lithium iron phosphate (LFP) pilot plant in Quebec. This facility serves as both a proof of concept and a demonstration of the scalability of their technology. The company has attracted substantial attention from major industry players, forming strategic partnerships with established names like Sumitomo Metal Mining, Rio Tinto, and Worley.

Rather than pursuing traditional manufacturing, Nano One has adopted a technology licensing model. The company aims to deploy its innovative plant design packages globally, enabling partners to establish more efficient and environmentally conscious cathode production facilities. This approach has garnered support from multiple government entities, with funding received from U.S., Canadian, British Columbia, and Quebec authorities, reflecting the strategic importance of developing domestic battery supply chains in North America.

The company's strategy addresses several critical challenges in the battery industry: the need for more cost-effective production methods, the imperative to reduce the carbon footprint of battery manufacturing, and the strategic goal of diversifying global supply chains beyond Asia. Through its licensing model and strategic partnerships, Nano One is positioning itself as a key enabler in the transformation of how battery materials are produced worldwide.

Interview with Chief Executive Officer, Dan Blondal

The Nano One Process Advantage 

Traditional manufacturing of cathode materials like lithium iron phosphate (LFP) involves multiple steps and separate precursor (PCAM) and cathode (CAM) processes, often done in different countries. This leads to added costs, energy usage, and waste generation. Nano One's patented one-pot process combines the PCAM and CAM steps into a single reaction, mixing lithium and other metals together to form the final cathode powder. As Nano One CEO Dan Blondal explains:

"It drives down the complexity, we don't have to build as many process plants. We're not using as much energy to drive those steps in the process and ultimately we're able to form the cathode materials more quickly and without any wastewater."

The elimination of wastewater is a key differentiator, as it removes the need for costly treatment infrastructure and makes permitting easier. Blondal notes:

"The elimination of wastewater and byproduct, sodium sulfate byproduct, eliminates complexity, cost, energy intensity, and ultimately makes the process in any plant we build easier to permit and quicker to come up to speed and operate."

Modular Plant Licensing Strategy 

To commercialize its technology, Nano One has recently partnered with Worley, a major global engineering firm, to create a standard plant design that packages the process, equipment, and intellectual property. This modular plant setup avoids the need for customized engineering at each site, reducing costs and enabling rapid deployment.

The business model is to license the plant design to established chemical, battery or industrial companies looking to build LFP production capacity. Licensees would pay an upfront fee to Nano One and Worley to cover engineering and design work, followed by a royalty stream based on the output of the operating plants.

According to Blondal:

"What we're delivering is a plant, and a customer would license that [plant], they become the licenser, they be responsible for the building and the operation of that plant."

By using this capital-light, annuity-based approach, Nano One can propagate its technology widely without the intensive capital needs of building and running plants itself.

LFP Focus & Addressable Market 

Nano One is initially targeting LFP as the chemistry for its first wave of plants. LFP is attractive because it is the lowest cost, safest and longest-lasting type of lithium-ion cathode. While previously considered inferior in energy density, LFP has seen major improvements and is gaining market share, especially in China. Blondal sees this trend playing out globally:

"We believe that LFP will go that way in Europe and in North America, and it's not a matter of if, it's just a matter of who and when."

LFP is well-suited for applications requiring frequent cycling and high durability, such as commercial electric vehicles, energy storage systems and the mass market for entry-level passenger EVs. Blondal emphasizes the scale of the opportunity, stating

"It's one of the reasons we chose LFP, but we have this adaptability to all the other chemistries as well, and that's what makes this technology, the one-pot technology, very robust."

Government & Strategic Support 

Nano One has attracted buy-in from key government and industry stakeholders. This includes a US $12.9 million investment from the U.S. Department of Defense to help commission Nano One's LFP demonstration plant in Quebec. Blondal frames this as part of an effort to build a secure North American supply chain that can grow on its own, ultimately to improve the security of the North American energy corridor and supply chain.

The company also received CAD $18 million from the government of Quebec to expand its facility, which will lever the existing expertise in the province. Nano One has established partnerships with Worley to co-develop and market the modular plants globally, and with Sumitomo Metal Mining to advance the technology for additional battery chemistries. These relationships underscore the credibility and applicability of Nano One's approach to the broader cathode market.

The Investment Thesis for Nano One Materials:

• Nano One's one-pot cathode manufacturing process reduces costs by 30%+ and energy consumption by 80% vs. incumbent technology
• Modular plant licensing model provides capital-efficient revenue streams from upfront fees and ongoing royalties on production
• Initial focus on LFP chemistry positions Nano One in the fast-growing commercial EV and energy storage markets
• Technology is chemistry-agnostic, opening up opportunities across the broader lithium-ion battery cathode space
• Validation from the U.S. Department of Defense, Canadian government, and global partners like Worley and Sumitomo Metal Mining
• Exposure to the electrification and battery megatrends with a differentiated and less commoditized business model vs. raw material extraction

Macro Thematic Analysis

The global transition to electric vehicles and renewable energy is driving unprecedented demand for lithium-ion batteries. Annual revenues for the lithium-ion battery cathode materials market is expected to grow to over $89 billion by 2030, while the lithium-ion battery market is expected to surpass $164 billion by 2030. However, battery production is currently concentrated in Asia, raising concerns about the security and sustainability of supply chains. Nano One CEO Dan Blondal captures the opportunity:

"We are right at the center of this and it is very much a pure play in the space, and the cost advantages that we have over the incumbent technology are quite tremendous."

As major automakers and governments invest billions into electrification, onshoring battery manufacturing has become a strategic priority. Companies like Nano One that enable localized, cleaner, and lower-cost cathode production stand to benefit immensely from these tailwinds. 

With many battery gigafactories under construction in North America and Europe, the race is on to establish the upstream supply chains. With its one-pot process and modular plant strategy, Nano One can be a key technology provider and partner in this buildout.