NEO Battery Materials Signs Letter of Intent for Joint Venture with Lotus Energy Recycling

• Letter of Intent Signed with Lotus Energy Recycling for Canadian Joint Venture
• To Collaborate on Recycling End-of-Life Photovoltaic (PV) Cells and Solar Panels in North America
  • Focus on Recovering Valuable Silicon Materials for Battery Applications
• Initiated Recovered Silicon Material Testing and Evaluation for Anode Active Material Development in Lithium-Ion Batteries

TORONTO, Oct. 21, 2024 (GLOBE NEWSWIRE) — NEO Battery Materials Ltd. (“NEO” or the “Company”) (TSXV: NBM) (OTC: NBMFF), a low-cost silicon anode materials developer that enables longer-running, rapid-charging lithium-ion batteries, is pleased to announce the signing of a non-binding Letter of Intent (“LOI”) with collaborating partner, Lotus Energy Recycling (“Lotus”) on October 8, 2024. The LOI outlines the intent to form a joint venture (“JV”) focused on recycling end-of-life photovoltaic (PV) cells and solar panels in North America. Recovering valuable silicon materials for the lithium-ion battery supply chain will be a key emphasis of the project. There are no material terms or considerations with respect to the LOI.

As per the press release on July 26, 2024, NEO and Lotus entered into a collaboration agreement to develop silicon anode products manufactured from recycled solar PV cells. Since then, both parties have actively discussed exploring JV opportunities to create a North American recycling footprint. The initiative prioritizes i) de-risking environmental concerns during silicon raw material production and ii) diversifying NEO’s silicon upstream sources.

The planned JV will establish physical operations in Canada to collect, dismantle, and recycle end-of-life PV cells and solar panels. The primary goal is to recover high-purity silicon and other valuable materials to create a sustainable, resilient, and circular supply chain for battery materials and cell production. JV activities are expected to commence soon after a definitive agreement is reached between both parties.

As the LOI outlines, the JV aims to leverage Lotus’ proprietary recycling know-how and NEO’s expertise in silicon anode manufacturing. Key technological priorities are optimizing the recovered silicon for battery applications and improving recycling process operations. Moreover, joint research and development activities are planned to refine the processes and technologies employed in the recycling operations.

Mr. Spencer Huh, Director, President and CEO of NEO, stated, “Following our collaboration agreement, we have initiated sample testing and evaluation of Lotus’ recycled silicon feedstock. We aim to invest our resources to optimize these materials as the theme and importance of supply chain circularity and resiliency continue to grow. We aim to negotiate in good faith to reach an agreement to initiate Canadian recycling operations.”

Mr. Anthony Vippond, Co-Founder and CEO of Lotus, expressed, “The innovation objectives between Lotus and NEO are well aligned. We both strongly believe in the application of silicon into advanced battery materials. This recent LOI is a step towards our joint vision for electric vehicle battery applications. With complementary technologies and objectives, both companies will explore mutual opportunities via the proposed partnership and co-location of our operations.”

About Lotus Energy Recycling Pty Ltd.
Lotus Energy Recycling is an Australian-based company specializing in the recycling of photovoltaic solar cells and panels. Lotus employs proprietary technologies to recover high-purity silicon, ensuring environmentally-responsible disposal and repurposing of e-waste. Headquartered in Melbourne, Lotus Energy plans to establish a significant presence by constructing commercial facilities in Sydney, Melbourne, and Germany.

About NEO Battery Materials Ltd.
NEO Battery Materials is a Canadian battery materials technology company focused on developing silicon anode materials for lithium-ion batteries in electric vehicles, electronics, and energy storage systems. With a patent-protected, low-cost manufacturing process, NEO Battery enables longer-running and ultra-fast charging batteries compared to existing state-of-the-art technologies. The Company aims to be a globally-leading producer of silicon anode materials for the electric vehicle and energy storage industries. For more information, please visit the Company’s website at: https://www.neobatterymaterials.com/.

On Behalf of the Board of Directors
Spencer Huh
Director, President, and CEO
Tel: +1-437-451-7678

For Investor Relations, PR & More Information:
info@neobatterymaterials.com

This news release includes certain forward-looking statements as well as management’s objectives, strategies, beliefs and intentions. All information contained herein that is not clearly historical in nature may constitute forward-looking information. Generally, such forward-looking information can be identified notably, but not limited to, by the use of forward-looking terminology such as “plans”, “expects,” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur”, “be achieved”, and similar words referring to future events and results. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including but not limited to: (i) volatile stock prices; (ii) the general global markets and economic conditions; (iii) the possibility of write-downs and impairments; (iv) the risk associated with the research and development of advanced technologies; (v) the risk associated with the effectiveness and feasibility of technologies that have not yet been tested or proven on commercial scale; (vi) the risks associated with entering into joint ventures, collaboration agreements, joint development agreements, and similar commercial agreements; (vii) fluctuations in input precursor prices; (viii) the risks associated with uninsurable risks arising during the course of research, development and production; (ix) competition faced by the resulting issuer in securing experienced personnel and financing; (x) access to adequate infrastructure to support battery materials research and development activities; (xi) the risks associated with changes in the technology regulatory regime governing the Company; (xii) the risks associated with the various environmental regulations the Company is subject to; (xiii) risks related to regulatory and permitting delays; (xiv) the reliance on key personnel; (xv) liquidity risks; (xvi) the risk of litigation; and (xvii) risk management, as described in more detail in our recent securities filings available at www.sedarplus.com. Forward-looking information is based on assumptions management believes to be reasonable at the time such statements are made, including but not limited to, continued research and development activities, no material adverse change in precursor prices and development plans to proceed in accordance with plans and such plans to achieve their stated expected outcomes, receipt of required regulatory approvals, and such other assumptions and factors as set out herein. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in the forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such forward-looking information. Such forward-looking information has been provided for the purpose of assisting investors in understanding the Company’s business, operations, research and development, and commercialization plans and may not be appropriate for other purposes. Accordingly, readers should not place undue reliance on forward-looking information. We assume no obligation to revise or update these forward-looking statements except as required by applicable law.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.