Published: January 18, 2023 |

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NEO Battery Materials Ltd. has announced that the city of Pyeongtaek in South Korea’s Gyeonggi Province has approved the construction permit for its silicon anode commercial plant following a “rigorous examination and due diligence period.”

With an initial capacity of 240 tons per year, the commercial plant will be capable of supplying silicon anodes for up to 160,000 electric vehicles, and NEO said it plans to target the full-fledged capacity at a minimum production of 2,000 tons per year.

The electric vehicle (EV) lithium-ion battery materials developer said it will now proceed to the invitation for bid to select the ideal contractor for construction, and the initial construction phase will include site clearance and basic civil engineering to prepare for the build-out of the plant.

“We are extremely excited to announce this long-awaited milestone goal to initiate the first steps of our commercial plant’s construction,” NEO president and CEO Spencer Huh said in a statement.

“From the active, diligent work of our commercialization engineering team, we have completed the due diligence period with the city earlier than expected to gain the approval, and we will continue to expedite the next processes to break ground and establish the company into an indispensable supplier of silicon anodes in the EV battery supply chain as soon as possible,” Huh added.

The company said it is actively looking to secure reliable, long-term investors, including institutional investors and corporations, to provide strategic investments for construction and equipment. Management deems strategic investors that possess the necessary resources, competencies, and network can support its business initiatives to expand in the global EV lithium-ion battery sector, it added. As it progresses with commercialization, it said minimizing equity dilution and achieving the optimal capital structure level was a priority.

Additionally, through South Korean subsidiary NBM Korea Ltd, NEO said its management team is in active discussion with multiple domestic financial institutions to secure strategic debt financing at favorable terms with low-interest rates.

“As we are on schedule to proceed to the next stages, the construction permit approval is a substantial catalyst that provides an advantageous position to attract the ideal strategic investments and also serves as a symbolic milestone to our business advancements. We aim to deliver subsequent news that bolsters both our business and financial position to create significant value for our shareholders,” Huh said.

Source: Proactive Investors

About NEO Battery Materials Ltd.
NEO Battery Materials Ltd. is a Vancouver-based company focused on lithium-ion battery materials for electric vehicle and energy storage applications. NEO has a focus on producing silicon anodes 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 electric vehicle industry.

To stop by NEO’s website, CLICK HERE

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