NEO Battery Materials Ltd., a low-cost, silicon-enhanced battery materials and components developer that enables longer-running, rapid-charging lithium-ion batteries, is pleased to receive its first, multi-year purchase order valued at $4.5 million CAD and secure a Joint Development Agreement (“JDA”) for high-performance battery products with an Asian manufacturer specializing in AI-powered mission flight control systems for drones and unmanned aerial vehicles (UAV) (the “Customer”).
NEO’s silicon-enhanced battery products will deliver industry-leading capacities, safety-reinforced power output, and overall weight reduction to enhance flight time, payload capacity, and mission operability.
“We are highly pleased to announce this milestone for NEO’s high-performance silicon battery development initiative for defence and industrial drone/UAVs,” commented Mr. Spencer Huh, President & CEO of NEO. “With our team from the globally-largest battery manufacturers and a proven track-record of commercializing complex battery products, we aim to build a secure supply chain outside of China to become a tier-1 battery solution vendor for U.S., European, and Asian drone/UAV manufacturers.”
Under the JDA, NEO Battery will design and manufacture two advanced battery products tailored to the Customer’s drone/UAV systems. The first product will incorporate the P-200 silicon anode series to produce high-capacity, high-power-output batteries designed for short-duration, combat drone missions. The second product will leverage the P-300N silicon series for industrial and surveillance UAVs, enabling extended flight-time capabilities and heavier payload capacities.
Structured in a three-phased development, NEO shall deliver (i) robust capacity retention and safety at high discharge/output rates and (ii) high energy density exceeding 350 watt-hours per kilogram (Wh/kg), representing more than a 40 to 59 percent increase compared to conventional drone batteries of 220 to 250 Wh/kg. The Customer will perform system-level integration of developed battery solutions and conduct rigorous, advanced field trials for final commercial deployment.
The Customer has accordingly committed to a 3-year purchase order of the two advanced silicon-enhanced battery products, valuing the total purchase commitments to $4.5 million CAD. Revenues are expected to be realized upon the completion of agreed JDA objectives and the delivery of commercial battery products. The Customer intends to integrate NEO’s silicon battery products into drone and UAV systems supplied to Asia-Pacific (APAC) industrial companies and governmental agencies, including South Korean and Indian military operations.
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