Mr. Bernard Tourillon reports

IMPROVING THE PERFORMANCE OF ANODE MATERIALS WITH NOVACIUM'S PATENTED SURFACE TREATMENT PROCESSES

HPQ Silicon Inc.'s affiliate company based in Lyon, France, Novacium SAS, has acquired a family of patents related to the surface treatment of carbon-base materials from Dr. Alexander Zaderko.

Dr. Zaderko is a world-renowned researcher from the University of Kyiv in Ukraine with more than 20 years of experience in carbon functionalization for various applications, including energy and supercapacitors.

Improving battery performance of silicon-based anode materials

Silicon-based anodes have up to 10 times the energy density of a graphite-based anode, which is why Porsche, Mercedes and GM are betting on silicon-anode batteries.

While silicon-based anode materials hold great promise for batteries, they are known to suffer from significant degradation during charging and discharging cycles. To address this issue, a common approach is the application of a carbon coating. This carbon coating is widely used to mitigate some of the degradation, improving the overall performance and durability of silicon-based anodes.

In collaboration with Dr. Zaderko, Novacium's team of researchers have adapted and validated the substantial potential of Novacium surface treatments for carbon-based materials in battery applications.

Initial tests have shown significant performance improvements in silicon-based Li (lithium)-ion batteries. These results indicate that the new surface treatment has a dual effect on battery properties: it reduces degradation by improving the interface with the electrolyte, enhancing cyclability (battery lifespan); and also reduces charging time.

Potential performance improvement for a wide range of lithium-ion batteries

Furthermore, initial test results with graphite anode materials alone (without silicon) suggest that the new surface treatment positively impacts the performance of graphite-based Li-ion batteries by enhancing the graphite-electrolyte interface.

"Our innovative approach aims to significantly improve the operation of lithium batteries," said Oleksiy Nichiporuk, Novacium's chief technical officer (CTO). "We believe that the application of Novacium's patented surface treatments has the potential to transform and enhance the performance of Li-ion batteries, benefiting not only silicon-based anode materials but the entire battery market."

Novacium's surface treatment process and HPQ's battery strategy

HPQ is committed to providing custom silicon (Si)-based anode materials solutions to industry players. The company's exclusive access to Novacium's new surface treatment further enhances HPQ's appeal to industry players.

The market for silicon-based materials for lithium batteries is expanding

A major trend in the lithium battery industry is the introduction of small amounts (between 5 per cent and 10 per cent) of silicon oxide (SiOx) into graphite composite electrodes. This is due to the fact that pure graphite anodes have essentially achieved their maximum performance in terms of energy density.

This new reality is driving a surge in demand for silicon anode materials. As of 2023, this market is valued between $1.1-billion (U.S.) and $2.7-billion (U.S.). Its growth prospects indicate a potential demand of 300,000 tons by 2030, estimated at $15-billion (U.S.), according to one source, and $131.6-billion (U.S.) in 2033 according to another source.

It is important to highlight that silicon-based materials for Li-ion batteries currently make up a relatively small portion, accounting for less than 10 per cent, of the global demand for graphite, which is primarily used in the manufacture of anode materials for Li-ion batteries. This graphite market is estimated to be worth $25-billion in 2023.

"Novacium's new patented surface treatment, which also improves the performance of graphite-based Li-ion batteries commonly used in the industry, provides HPQ and Novacium with a unique opportunity to offer solutions tailored to both the short- and long-term needs of the battery industry," said Bernard Tourillon, president and chief executive officer of HPQ Silicon and Novacium SAS. "Promising preliminary discussions have already started to take place with entities already under non-disclosure agreements (NDAs) with HPQ on the potential of this technology."

About Novacium SAS

Novacium is green technology startup based in Lyon, France, started in Q3 2022. It is the result of a partnership between three of France's leading research engineers, Jed Kraiem, PhD, Novacium's chief operating officer (COO), Dr. Nichiporuk, PhD, Novacium's chief technical officer (CTO), and Julien Degoulange, PhD, Novacium's chief innovation officer (CIO), that wanted to start a new research and development company to develop their own technology in high-added-value fields connected to renewable energy, and HPQ Silicon, a Canadian company, looking to expand the depth and reach of technical team in order to develop its silicon and new renewable energy projects.

About HPQ Silicon Inc.

HPQ Silicon is a Quebec-based TSX Venture Exchange Tier 1 industrial issuer. HPQ is developing, with the support of world-class technology providers PyroGenesis Canada Inc. and Novacium SAS, new green processes crucial to make the critical materials needed to reach net-zero emissions.

HPQ activities are centred around the following five pillars:

1. Becoming a green low-cost (capex (capital expenditures) and opex (operating expenditures)) manufacturer of fumed silica using the fumed silica reactor, a proprietary technology owned by HPQ that is being developed for HPQ by PyroGenesis.
2. Becoming a zero-CO2 (carbon dioxide), low-cost (capex and opex) producer of high-purity silicon (2N+ to 4N) using its Purevap quartz reduction reactors, a proprietary technology owned by HPQ that is being developed for HPQ by PyroGenesis.
3. Becoming a producer of silicon-based anode materials for battery applications with the assistance of Novacium SAS.
4. HPQ Silicon affiliate Novacium SAS is developing a low-carbon chemical base on demand and high-pressure autonomous hydrogen production system.
5. Working to become the first producer of nano silicon materials from high-purity silicon chunks using the proprietary Purevap nano silicon reactor (NSiR), a technology owned by HPQ that is being developed for HPQ by PyroGenesis.

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