Nano One Materials Corp (TSX:NANO, OTC:NNOMF) reaffirmed its strategy to scale up localized production of lithium iron phosphate (LFP) battery materials, as global demand for the cathode active material accelerates and Western economies move to reduce reliance on Chinese supply chains.
"There is tremendous market opportunity in LFP, and the key to capturing market share lies in process innovation," Nano One CEO Dan Blondal told shareholders in a statement.
The Vancouver-based company has developed its proprietary One-Pot Process to simplify the production of LFP cathode materials used in electric vehicle (EV) batteries and energy storage systems. The process, which vertically integrates precursor and cathode production, is designed to reduce costs and environmental impacts while enhancing the scalability of battery material plants outside of Asia.
“One-Pot eliminates wastewater and dependence on China's iron sulphate, laying a sustainable foundation for easy-to-permit LFP plants that could unlock industrial growth potential in the West,” the CEO added.
According to BloombergNEF, global demand for cathode active materials is projected to reach 5.9 terawatt-hours by 2035, with LFP expected to account for 52% of the market—tripling its share from earlier estimates. Although China currently dominates the LFP market with roughly 95% of global production capacity, demand outside China is forecast to grow fivefold, driven by EVs and grid-scale energy storage.
Governments in Canada and the EU have responded by pledging joint investments in critical mineral infrastructure. During the recent G7 summit, member nations adopted a Global Critical Minerals Action Plan to catalyze investment in processing capacity and reduce dependencies on strategic materials.
At the same time, the International Energy Agency’s 2025 Global Critical Minerals Outlook identified Nano One as one of a few companies developing alternative LFP production methods aimed at mitigating supply chain risks. The report noted that key input materials—such as iron sulphate and purified phosphoric acid—are currently available at low cost in China but are difficult to source elsewhere without paying significant premiums.
“We are honoured to be shortlisted by the IEA as an LFP innovator,” Blondal said. “We are working closely with governments and our clients to de-bottleneck, de-risk and re-patriate the LFP supply chain, to fortify our energy security, and to add shareholder value.”
Nano One said it is actively sampling and collaborating with partners in North America, Europe, and the Indo-Pacific, with plans to finalize its first commercial license agreements to meet what it called the "imminent need for localized battery materials" in the global energy transition.