NEO Battery Materials Ltd (CVE:NBM) (OTCMKTS:NBMFF) (FRA:1BC) revealed that it has struck a Memorandum of Understanding (MoU) with Ferroglobe Innovation (FGI), a subsidiary of Ferroglobe PLC (NASDAQ:GSM) (FRA:5FG), a top global supplier of silicon metal, silicon-based and manganese-based specialty alloys and ferroalloys.
The Vancouver battery metals resource company said the two firms entered into a non-disclosure agreement (NDA) in April and have “advanced discussions regarding the development of silicon powders and anode materials.”
Under the terms of the MoU, the companies intend to pursue synergies and mutual benefit through combining NEO's silicon nanocoating technology and FGI's silicon materials to “optimize the electrochemistry, performance, and cost of the silicon powder and anode materials in lithium-ion batteries.”
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“Advancing cost-effective manufacturing capabilities for the silicon downstream are of priority and essence for the full adoption of silicon anodes in electric vehicles and energy store solutions (ESS) applications,” noted the company.
Ferroglobe is a dominant global producer of silicon metal and its respective alloys, operating with 26 production centers in Canada, France, South Africa, Spain, and the US among other big markets. Ferroglobe Innovation has developed proprietary technology to produce high-purity silicon powders and to supply customized solutions to customers in the manufacturing industry.
“Ferroglobe accounts for 14% of the global production capacity of silicon metal and is recognized as the leading producer of ferroalloys in the European Union,” said the company.
In a statement, NEO President Spencer Huh said: "We are highly excited to be in discussion with Ferroglobe. The expertise and experience that FGI brings is invaluable to NEO's accelerated plan of commercialization.”
“NEO emphasizes that cost and performance of silicon anode materials are highly complementary as one cannot go without the other. Thus, we will engage closely with Ferroglobe to push the development of low-cost, mass-producible end market anode materials."
NEO is focused on developing silicon anodes, which provide improvements in capacity and efficiency over lithium-ion batteries using graphite in their anode materials. The company intends to become an integrated silicon producer and anode materials supplier to the electric vehicle industry.
Contact the author Uttara Choudhury at uttara@proactiveinvestors.com
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