Nano One Secures C$26.5 Million Funding to Accelerate LFP Commercialization

• Nano One Materials reports a strong financial position with total net assets of C$21.4 million as of Q4 2024, which has been further bolstered by the recent C$26.5 million in funding received in Q1 2025.
• The company has secured C$26.5 million in non-dilutive funding through government contributions (C$12.75 million) and a sale-leaseback transaction (C$13.7 million), significantly strengthening its balance sheet for lithium-iron-phosphate (LFP) commercialization initiatives.
• The company is executing a dual-focused growth strategy centered on pre-sales marketing and customer qualification at its Candiac plant, with initial product sales targeted at sophisticated sectors like defense and aerospace as catalysts for larger orders and licensing deals.
• Nano One's patented One-Pot process technology avoids the sulfating part of the supply chain, thereby reducing capital costs, energy use, and environmental footprint while simplifying permitting processes for LFP cathode production.
• A strategic alliance with Worley Chemetics has completed preliminary design and full-scale layout of the modular "Design One, Build Many" plant, confirming the economic advantages of Nano One's One-Pot process for LFP cathode materials.

Nano One Materials Corp. (TSX:NANO) is a process technology company specializing in lithium-ion battery cathode active materials. The company's patented One-Pot process reduces costs, is easier to permit, lowers energy intensity, environmental footprint, and reliance on problematic supply chains. Nano One is leveraging its LFP (lithium-iron-phosphate) pilot production plant in Québec—the only facility and expertise of its kind outside of Asia—to drive energy security, supply chain resilience, industrial competitiveness, and increased performance through process innovation. The company has formed strategic collaborations with international companies like Sumitomo Metal Mining, Rio Tinto, and Worley to support a design-one-build-many licensing growth strategy.

Recent developments at Nano One Materials Corp. indicate significant progress in its commercialization initiatives and financial strengthening, positioning the company as a potential key player in the North American battery materials supply chain. For investors considering Nano One, the company offers exposure to the growing battery materials sector with a technology that addresses critical environmental and economic challenges in cathode production, backed by substantial government and strategic partner support, though commercialization timelines and market adoption remain key factors to monitor.

Strategic Financial Strengthening

Nano One has significantly improved its financial position in early 2025, securing C$26.5 million in non-dilutive funding from two main sources. The company received C$12.75 million in government contributions, primarily as reimbursement for eligible project expenditures, and completed a sale-leaseback transaction that generated net proceeds of C$13.7 million plus a C$2.0 million deferred payment via vendor loan. In a news release,

"These funds strengthen our balance sheet," said Nano One's CEO and Founder, Dan Blondal, "and enable us to fully execute on our capacity expansion, production and licensing plans through 2025 and further."

This highlights the company's confidence in its ability to advance its commercialization strategy without requiring additional equity capital in the near term. Blondal noted that this funding reflects the strategic importance of our One-Pot process for energy and supply chain security, adds considerable shareholder value and supports commercialization and the fulfillment of our corporate objectives."

The sale-leaseback transaction involved the company's building and land at its Candiac Facility, with Nano One securing a 15-year lease agreement with renewal provisions for up to an additional 15 years. This transaction provides immediate capital while ensuring long-term operational stability in Québec. The carrying value of the assets subject to the sale-leaseback was approximately C$6.5 million, indicating a significant gain on the transaction.

Government Support & Financing

The Quebec government has demonstrated substantial support for Nano One's technology and commercialization efforts.

• The company received an award of C$18.0 million in financing from the Government of Québec, consisting of a C$15.0 million loan from the Ministry of the Economy, Innovation and Energy (MEIE) through Investissement Québec
• C$3.0 million grant from the Ministry of the Environment, the Fight against Climate Change, Wildlife and Parks (MELCCFP), through its Technoclimat program
• In the first quarter of 2025, Nano One received C$9.7 million from Investissement Québec and Technoclimat
• The company also reports having approximately C$29 million in reimbursements remaining to claim over the coming two years from its contracted government programs, providing additional financial runway

The C$15.0 million loan directly supports approximately C$63.4 million of eligible expenditures between January 2023 and December 2026 at the Candiac Facility. Nano One estimates that C$30.0 million of eligible expenditures have already been incurred. The loan's repayment period begins 60 months after the first disbursement and will be repaid over a subsequent 60-month period. The C$3.0 million grant is specifically directed toward facilitating a transition to cleaner and more efficient manufacturing.

This significant government support highlights the strategic importance of Nano One's technology to Quebec's and Canada's battery supply chain ambitions. It also provides validation of the company's technical approach and potential economic impact.

Commercial Strategy & Technology Advantages

Nano One is executing what it describes as a dual-focused growth strategy centered on pre-sales marketing and customer qualification at its Candiac plant. The company believes that initial product sales are critical because they build "confidence, leading to larger orders, and larger orders lead to license deals. This approach suggests a staged commercialization strategy where initial sales to sophisticated sectors such as defense and aerospace serve as catalysts for broader market adoption.

A key aspect of Nano One's business model is its licensing strategy, which Blondal notes Nano One remains totally transparent to tariffs making the company effectively tariff-proof. This positions the company to adapt to changing trade regulations and restrictions, a significant advantage given the increasing geopolitical tensions affecting battery supply chains.

The company has identified lithium-iron-phosphate (LFP) cathode materials as the cornerstone of its near-term market strategy. This focus is based on LFP's dominant global demand trajectory and its applicability across renewable energy storage, data centers, AI applications, and mid-range electric vehicles. Blondal emphasizes that North America must build a robust LFP supply chain or risk being run over by global competitors, particularly from China.

Importantly, Nano One's One-Pot technology differentiates itself by avoiding the sulfating part of the supply chain, which the company claims significantly reduces capital costs, energy use, and environmental footprint while simplifying permitting processes. This technological edge could position Nano One advantageously in the developing North American LFP market.

Strategic Alliance Progress

Nano One's alliance with Worley Chemetics represents a significant step in the company's commercialization strategy. In December 2024, the company reported that this alliance had conducted a joint cost comparison that confirmed the economic advantages of Nano One's One-Pot process for LFP cathode production.

Additionally, the preliminary design and full-scale layout of the modular "Design One, Build Many" plant has been completed and is being marketed to prospective clients. This modular approach aligns with Nano One's licensing strategy, potentially enabling faster and more cost-effective deployment of its technology.

The alliance with Worley Chemetics provides Nano One with engineering expertise and credibility when approaching potential licensing partners. Worley's global reach and reputation in industrial process engineering could accelerate the adoption of Nano One's technology, particularly among large-scale battery material producers.

Investment Considerations

Nano One Materials Corp. presents a potentially interesting opportunity for investors seeking exposure to the battery materials technology sector. The company has developed a process innovation that addresses several key challenges in cathode material production, including cost, environmental impact, and supply chain resilience.

The significant government support and strategic partnerships Nano One has secured provide validation of its technology and approach. The non-dilutive funding recently obtained strengthens the company's financial position and extends its runway to achieve commercial milestones.

However, investors should consider that Nano One is still in the early stages of commercialization, with initial product sales and licensing deals yet to be announced. The timeline to significant revenue generation remains uncertain, and the company will face competition from established cathode material producers and other emerging technologies.

The company's focus on LFP cathode materials aligns with market trends, particularly in energy storage and mid-range electric vehicles. The potential expansion of North American battery manufacturing capacity could create substantial opportunities for Nano One if its technology proves commercially viable at scale.

For investors with a medium to long-term horizon and an interest in the battery supply chain, Nano One represents a technology-focused approach to addressing critical challenges in cathode production. The company's progress in the coming quarters, particularly regarding initial product sales and licensing agreements, will be important indicators of its commercial potential and long-term value proposition.