NEO Battery Materials Ltd. (TSX-V:NBM) said it has signed a Memorandum of Understanding (MOU) with the Province of Gyeonggi in South Korea to advance the mass production of silicon anode materials for electric vehicle (EV) batteries.
NBM Korea, a wholly owned subsidiary of NEO Battery Materials, will initially invest 24 billion Korean won (around C$25 million) over the next five years to support the construction and expansion of the silicon anode commercial plant located on a 107,000 square feet site in Oseong Foreign Investment Complex, Pyeongtaek City, Gyeonggi-do.
"Through this MOU, NEO Battery Materials has secured a practical and useful partnership with the Province of Gyeonggi, which is the most populous and largest provincial economy in South Korea. We are incredibly excited to establish another step to advance the commercialization of NEO's silicon anode through Gyeonggi-do's various support and cooperation,” Spencer Huh, president and CEO of NEO said in a statement.
“Additionally, with the signing of the MOU, we expect that ongoing corporate developments will be able to proceed and produce results without problem and deterrence to the plan," he added.
READ: NEO Battery manufactures NBMSiDE pouch-type full cells for product evaluation in genuine battery charging conditions
NEO Battery noted that Gyeonggi Province recognizes the importance of commercializing silicon anode materials, which have emerged as an essential next-step in the development of rechargeable battery materials, and has decided to provide active and continuous administrative and business support to enable the early mass-production of NBMSiDE (silicon anode active materials).
Han Kyu Lee, second vice-governor of administration of Gyeonggi-do, commented: "Lithium-ion batteries are the next catalyst for South Korea's economic growth, succeeding the semiconductor industry, but the Korean battery industry is only a house built on sand without distinctive competitiveness and innovation in battery material technology.
“We expect that the cooperation between NEO Battery Materials, which possesses silicon anode material technology, and the Gyeonggi Province will substantially contribute to increasing the competitiveness of battery material technology."
NEO Battery Materials is a Vancouver-based company focused on electric vehicle lithium-ion battery materials. It has a focus 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 EV industry.
Contact the author at jon.hopkins@proactiveinvestors.com