NEO Battery Materials Ltd. (TSX-V:NBM) has announced that it is in the process of establishing NBM America Ltd, a fully-owned subsidiary, as it actively seeks US expansion opportunities that include its core silicon anode business and new value-added projects in the battery materials industry.
As a private company, the electric vehicle (EV) lithium-ion battery materials developer said NBM America will focus on securing funding opportunities from state-level programs to federal-level initiatives that include the Inflation Reduction Act and Department of Energy funding.
The subsidiary will also target accessing the large pool of US venture capital funding that focuses on cleantech thematic investing and strengthening EV infrastructure, NEO said. Numerous opportunities will create a stable financial runway for NBM America to construct additional commercial plants and value-add projects like silicon waste recycling in the US.
"We are now actively pursuing the US expansion strategy following highly positive results from optimization and commercialization progress of our silicon anode materials, NBMSiDE,” NEO CEO Spencer Huh said in a statement.
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“We also recognize the substantial potential for silicon waste recycling in the US as we have secured core engineers and researchers,” Huh added.
Ohio: The new strategic US battery hub
In the first phase of its US business expansion plan, NEO said it will open a research and development (R&D) centre and office in Ohio.
NBM America will begin active business development to enter the US market for the core silicon anode business and will concurrently evaluate new battery materials projects to add further value for NEO Battery Materials, it added.
The subsidiary will also allow closer interaction with US-based parties to expedite business and collaborative activities, and additional manpower will be supplemented to support this expansion, the company added.
NEO said Ohio has been recognized as a strategic hub for the growing US battery supply chain, and currently provides a favorable business environment for foreign companies, especially for those in the battery supply chain like NEO Battery Materials.
It noted that Ultium Cells, a joint venture between LG Energy Solution and General Motors, has started production in its Ohio gigafactory battery plant with a $2.3 billion investment, and recently, LG Energy Solution and Honda have announced a joint venture for a gigafactory battery plant in Ohio ($4.4 billion investment). The company has initiated communication with the state of Ohio, and will continue with the necessary proceedings with its advisor in Ohio, it said.
“Through NBM America, we strongly believe NEO can increase its exposure to the larger business and investment community in the US,” Huh concluded.
NEO Battery Materials is a Vancouver-based company focused on producing silicon anode materials through its proprietary single-step nanocoating process, which provides improvements in capacity and efficiency over lithium-ion batteries using graphite in their anode materials. The company intends to become a silicon anode active materials supplier to the electric vehicle industry.
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