Nano One Materials Corp (TSX:NANO, OTC:NNOMF) and Our Next Energy (ONE) have announced a joint development agreement (JDA) to collaborate on the production of lithium iron phosphate (LFP) cathode active materials (CAM) for energy storage.
The CAM will be manufactured at Nano One's Candiac facility in Québec, Canada, for potential use in ONE's Aries and Gemini batteries.
The partnership aims to establish a North American supply chain for LFP batteries, aligning with ONE's goal of growing the local material supply chain while minimizing costs and environmental impact.
Shares of Nano One Materials gained 6% to $2.87 in late-afternoon trading on Wednesday.
In a statement, Dan Blondal, CEO and founder of Nano One, commented: "This is great news for our shareholders and also for our government supporters, and it is another important step forward for Nano One in the process to securing offtakes and monetizing our technology.
"We want to work with well-funded companies that have the backing of global industry leaders, and the battery technology and production experience to capture significant market share, so it is with great confidence that we are adding ONE to our ecosystem of trusted partners."
Nano One will utilize its patented One-Pot process for the pilot production of LFP CAM at the Candiac plant, providing the company with a significant competitive advantage in the North American LFP supply chain.
ONE has already commenced production of its Aries LFP battery pack and is constructing ONE Circle, a 20 GWh battery cell factory in Van Buren Township, Michigan, set to begin operations in 2024.
Mujeeb Ijaz, CEO and founder of ONE, noted: "Nano One's innovative and localized CAM process is aligned with ONE's efforts to grow our local material supply chain while minimizing cost, complexity, and environmental footprint."
Both Nano One and ONE believe they can meet or surpass rigorous industrial validation standards. The partnership benefits from strong government support in the United States and Canada, along with strategic partners and shareholders that include automotive OEMs, multinational critical mineral suppliers, and leading chemical companies.
ONE is a Michigan-based energy storage technology company focused on engineering batteries for transportation and stationary applications.
Nano One is a clean technology company specializing in the low-cost production of high-performance lithium-ion battery cathode materials, with collaborations with automotive OEMs and strategic industry supply chain companies.
This collaboration marks a significant step forward in establishing a localized and environmentally sustainable supply chain for LFP batteries in North America.
Contact the author at jon.hopkins@proactiveinvestors.com
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