Nano One Materials Corp (TSX:NANO, OTC:NNOMF) announced Monday that its subsidiary, Nano One Materials Candiac, has received C$18 million in financial support from the Government of Québec to bolster its production of lithium-ion battery cathode active materials.
The funding includes a C$15 million loan from Investissement Québec, mandated by the Ministry of the Economy, Innovation and Energy (MEIE), and a C$3 million grant from the Ministry of the Environment, the Fight Against Climate Change, Wildlife and Park.
The financing aims to advance the piloting and commercialization of Nano One’s patented One-Pot process, which promises to lower production costs and greenhouse gas emissions, as well as capacity expansion at the company’s Québec facility.
The C$15 million loan will cover eligible expenditures at Nano One’s lithium iron phosphate (LFP) production facility through 2026, with repayment starting five years after the first disbursement. The C$3 million grant will assist the company’s transition to cleaner, more efficient manufacturing processes.
The funds also support Nano One’s 200-ton-per-year piloting line, commissioned in 2023, and planned capacity expansions in 2025 and 2026.
"We are grateful to the Government of Québec for its leadership and support of the battery industry and the emerging LFP market, and for recognizing Nano One's commitment to piloting and commercializing our technology in the province,” Nano One CEO Dan Blondal said in a statement.
“We made a pivotal acquisition in Candiac, Québec, on November 1, 2022, of North America's only existing LFP production facility and have since integrated its highly experienced team. Candiac is positioned as a center of excellence to support larger scale production facilities and a localized supply chain that also reduces the environmental footprint of batteries, and we are delighted to be leading this in Québec."
The Québec government’s backing complements US$12.9 million in non-dilutive funding awarded to Nano One by the US Department of Defense in September 2024, also aimed at capacity expansion in Candiac.
"By investing $18 million in the Nano One pilot plant project, we are giving ourselves the means to strengthen Québec's expertise in the manufacturing of Québec green batteries,” said Christine Fréchette, Minister of the Economy, Innovation and Energy in a statement.
Nano One’s One-Pot process integrates multiple production steps, eliminating iron and phosphate precursors while reducing wastewater, energy intensity, and greenhouse gas emissions by up to 50% compared to traditional methods.
Shares of Nano One gained 2.3% on the news, trading at $0.89 in Toronto on Monday afternoon.