Mr. Bernard Tourillon reports

COMMERCIAL LI-ION BATTERIES MADE WITH NOVACIUM'S FIRST GEN ENGINEERED SIOX MATERIAL

HPQ Silicon Inc.'s France-based affiliate, Novacium SAS, has reached a first significant milestone.

Novacium commissioned an external laboratory to produce 18650 industrial batteries using its engineered SiOx material, for which HPQ Silicon Inc. holds exclusive global licences. This process was initiated with the intent to validate the immediate industrial potential of its SiOx material.

The first batch utilized 100 per cent graphite anode material, serving as benchmark batteries for performance comparison. These benchmarks were then compared with the second batch, which consisted of a blend of 90 per cent graphite and 10 per cent of Novacium's first-generation engineered SiOx anode material.

"Charging and discharging cycle tests are ongoing, and preliminary results, after five cycles, are not just promising, they exceed our expectations," said Dr. Jed Kraiem, PhD, chief operating officer of Novacium.

Achieving 14-per-cent battery capacity improvement with silicon integration

Achieving a 14-per-cent-overall improvement in industrial type full-battery capacity compared with the 100 per cent graphite benchmark batteries is indeed a significant accomplishment. These results surpass HPQ/Novacium theoretical estimate of validating a 10-per-cent improvement in battery performance for these tests.

The absence of a measurable first cycle degradation, despite incorporating silicon, is particularly noteworthy. Silicon is known to expand and contract during charging and discharging cycles, which can lead to capacity loss. The fact that this issue has been mitigated is a promising sign for the potential application of this technology in battery manufacturing.

Engineered SiOx materials strategy

Novacium and HPQ are focused on creating engineered SiOx anode materials designed to improve the performance of graphite-based lithium-ion batteries. These advancements target various applications, including energy storage systems, consumer electronics and electric vehicles.

"Drawing on our technical expertise gained from the photovoltaic industry, our goal is to produce a proprietary engineered SiOx anode materials using cost-effective equipment and highly scalable processes that are already proven in a multiton-scale pilot manufacturing line, therefore allowing for the seamless integration of our engineered SiOx anode material into existing electrode mixing and coating equipment," said Dr. Jed Kraiem PhD, chief operating officer of Novacium. "The resulting graphite and SiOx mixture will not only significantly enhance battery capacity but also can be utilized without modification by large-scale gigafactories worldwide."

Test objectives

The primary aim of making industrial batteries from the start was to showcase the ability to produce graphite and engineered SiOx anode materials that battery manufacturers can use without altering their existing production processes. This capability is central to the company's strategy. The initial outcomes not only highlight the adaptability and compatibility of Novacium's methods but also suggest the possibility for broader industry application.

Continuing the charging and discharging cycle tests will be crucial to further validate the long-term performance and durability of these batteries. If the positive trend observed in the initial cycles persists, it could significantly advance battery technology with potential implications for various applications, including electric vehicles and portable electronics.

"These first results exceed our expectations, especially considering that our initial series of tests used a non-optimized version of our SiOx material. This leaves room for further improved results in the future," said Bernard Tourillon, president and chief executive officer of HPQ Silicon and Novacium SAS. "As more cycle testing results become available, we believe that they will further confirm our unique ability to make this product and the commercial potential of Novacium-engineered SiOx-based anode materials."

Why use the 18650 battery model?

The commercial-grade lithium-ion battery model 18650 was intentionally selected due to its widespread use in consumer electronics, power tools and electric vehicle battery packs. This choice was strategic and aimed at leveraging the 18650 battery's established reputation for durability, high energy density and efficient power conversion capabilities. In other words, 18650 battery was chosen as the most standard lithium battery on the market.

The 18650 battery, characterized by its cylindrical form factor (18 millimetres by 65 mm), offers a balance between size and power, making it larger than standard AA batteries but significantly more potent, with a voltage of 3.7 volts and capacity ranging from 2,500 milliamp hours to 3,500 mAh. Its high drain capability and ability to be recharged hundreds or thousands of times without significant degradation make it an ideal candidate for projects demanding consistent, high-level power output. By selecting this battery type, which is a cornerstone in the electric vehicle industry, the company ensures seamless integration and avoids potential issues related to power conversion when transitioning between different types of batteries.

This decision capitalizes on the battery's reliability and efficiency and aligns with industry standards, providing a familiar reference point for further development and application in various technological arenas.

The company is aware that in the future, the standard battery will evolve toward the 21700 battery, therefore it is in process of preparing a next series of test using these types of industrial batteries.

"Today's announcement marks a significant milestone, reinforcing our strategic alliance with our associated company, Novacium. With our exclusive global licences, HPQ is strategically positioned in the global market as a reliable and sustainable source of innovatively engineered SiOx battery materials," Mr. Tourillon added.

About Navacium SAS

Novacium is an HPQ-associated company started in the third quarter of 2022. This green technology start-up is based in Lyon, France, and is a partnership with HPQ and three of France's leading research engineers, Dr. Jed Kraiem, PhD, Novacium's chief operating officer, Dr. Oleksiy Nichiporuk, PhD, Novacium's chief technical officer (CTO), and Dr. Julien Degoulange, PhD, Novacium's chief innovation officer (CIO). Novacium is a new research and development company which allows the researchers to develop their own technology in high-added-value fields connected to renewable energy, and allows HPQ Silicon, a Canadian company, to expand the depth and reach of technical teams to help 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 partners PyroGenesis Canada Inc. and Novacium SAS, new green processes crucial to make the critical materials needed to reach net zero emissions.

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