Nano One Reports Strong Q1 2025 Results Advancing Strategic Battery Technology Platform

• Nano One reported total net assets of $25.5 million as of Q1 2025, bolstered by $26.5 million in non-dilutive funding received during the quarter from sale-leaseback transactions and government programs.
• The company's One-Pot processing technology addresses critical supply chain vulnerabilities in lithium-ion battery cathode production, eliminating dependency on China-controlled metal-sulfate inputs.
• Strategic partnerships with Sumitomo Metal Mining, Rio Tinto, Worley, and backing from the U.S. Department of Defense validate the company's technology platform and market positioning.
• The Québec facility operates as North America's only LFP demonstration plant with full-scale commercial equipment, serving as a platform for partnerships and scale-up activities.
• Management emphasizes a Design-One-Build-Many licensing model to enable global deployment while maintaining reduced capital costs and execution risks.

Nano One Materials (TSX:NANO) operates as a process technology company specializing in lithium-ion battery cathode active materials. The company has developed proprietary One-Pot processing technology designed to address critical bottlenecks in battery supply chain localization. For investors evaluating Nano One, the company presents a strategic play on battery supply chain security and localization trends, with demonstrated financial stability and validated technology backed by major industrial and government partners.

Strong Q1 2025 Financial Position

Nano One demonstrated solid financial footing in its first quarter results, reporting working capital of $24.8 million and cash equivalents of $27.8 million. The company's financial strength was enhanced by significant non-dilutive funding sources during the period:

• In Q1 2025, total proceeds of $26.5 million were received between the sale and leaseback transaction (net proceeds of $13.7 million), and drawdowns on government programs of $12.8 million.
• Additionally, the company noted that approximately $29.0 million remains in reimbursements to claim over the coming two years from contracted government programs," indicating continued non-dilutive funding visibility.
• Net income of $2.7 million for Q1 2025 was driven by government grant recognition and gains from the sale-leaseback transaction, demonstrating the company's ability to leverage strategic financial structures.

Addressing Critical Supply Chain Bottlenecks

In a company article, CEO Dan Blondal articulates the strategic opportunity facing the battery industry, stating:

"The real bottleneck is what happens after extraction—how we refine, process, and transform them into cost-competitive cathode materials, at scale and at home."

The company positions its technology as addressing fundamental supply chain vulnerabilities. Blondal explains the scope of the challenge, "Cathode materials account for 30–50% of a lithium-ion battery's total cost, and their production is notoriously difficult to localize. Production is costly, hard to permit, and tied to overseas manufacturing and proprietary know-how."

This positioning addresses growing concerns about supply chain security in critical industries.

As Blondal notes, "Beyond their role in a low-carbon economy, the low-cost, high-quality advantage of Chinese EVs is a direct competitive threat to the future of Western automakers. Batteries are also the foundation of energy storage systems (ESS) and have become central to energy security and sovereignty."

One-Pot Technology Platform

Nano One's core technological differentiation centers on its One-Pot processing platform, which the company describes as integrating precursor (pCAM) and cathode (CAM) production into one streamlined process, using domestically sourced metal powders and lithium carbonate as inputs."

The company emphasizes environmental and operational benefits: "No wastewater—no costly treatment or discharge. No sodium sulfate by-products—no disposal logistics. No China-controlled inputs—no exposure to trade uncertainty. Reduced cost, energy, water, permitting, and supply chain risk."

Blondal positions this as more than incremental improvement:

"China controls the metal-sulfate inputs, using capital-, water-, and energy-intensive methods that are challenging to replicate and permit in North America, Europe, and other emerging battery markets. Attempts to copy and paste this model in the West have consistently failed."

Operational Demonstration & Scale-Up Strategy

The company's Québec facility provides tangible validation of its technology platform. Management describes it as operating "using full-scale commercial equipment—and it's already serving as a platform for partnerships, training, and scale-up."

Nano One has adopted what it terms a "practical, modular approach to scaling" designed to "reduce capital cost, execution risk, and time to deployment." This strategy addresses traditional scaling challenges in industrial technology deployment.

The company outlines its scaling methodology where the demonstration plant in Québec is set as a launchpad for revenue and growth. Our modular strategy reduces engineering timelines and investment risk. Our Design-One-Build-Many growth strategy enables scalable replication."

Strategic Partnerships & Validation

The company's technology platform has attracted validation from major industrial and government stakeholders.

As Blondal notes, "Nano One already has the backing of Sumitomo Metal Mining, Rio Tinto, Worley, the U.S. Department of Defense, and the governments of Canada and Québec."

The partnership with Worley provides particular strategic value for global deployment. The company emphasizes that alliance with Worley provides global reach and delivery capability, positioning Nano One to scale internationally through established engineering and construction networks.

Government backing, including from the U.S. Department of Defense, signals recognition of the strategic importance of battery supply chain security. This validation supports the company's positioning in defense and energy security applications.

Licensing Model

Nano One's business model centers on technology licensing rather than direct manufacturing, which management presents as enabling broader market impact while reducing capital intensity.

Blondal explains, "Nano One's Design-One-Build-Many licensing model isn't just a business strategy—it's a framework to disrupt outdated, sulfate-based processes."

The licensing approach aims to friend-shore battery production through domestic and allied partnerships while securing the supply chain with scalable, easier-to-permit technology that reduces reliance on foreign-controlled inputs.

This model positions the company to benefit from global battery localization trends without the capital requirements of direct manufacturing operations.

Market Context & Investment Outlook

Management frames the opportunity within broader geopolitical and industrial trends.

Blondal observes, "As global trade systems are up-ended, supply chains rethought, and energy security reprioritized, it is easy to dismiss the relevance of lithium-ion batteries. We think they're central."

The company positions batteries as extending beyond clean energy applications: "From electric military vehicles to grid-scale storage and AI-driven defence systems, batteries underpin modern logistics and operations. Governments are responding by ramping up defence spending, catalyzing supply chains, and rethinking the industries that enable them."

For investors, Nano One presents a strategic play on battery supply chain localization with demonstrated financial stability and validated technology. The company's Q1 2025 results show strong liquidity position and non-dilutive funding sources, providing operational runway for technology deployment.

The combination of proprietary technology addressing critical industry bottlenecks, strategic partnerships with major industrial players, and government backing positions the company to benefit from growing emphasis on supply chain security. The licensing model offers potential for scalable revenue generation without proportional capital intensity.

However, investors should consider execution risks inherent in technology scaling and the competitive dynamics of the evolving battery industry. The company's success will depend on successful commercial deployment of its technology platform and market adoption of its licensing model.