Mr. Denis Geoffroy reports

NANO ONE PROVIDES UPDATE ON VALIDATED FEEDSTOCK SUPPLIERS FOR LFP CATHODE PRODUCTION

Nano One Materials Corp. has achieved a key milestone in its feedstock qualification program. A diverse range of lithium carbonate and phosphoric acid suppliers have now been prequalified for LFP (lithium-iron-phosphate) cathode production, with suppliers of iron oxide also advancing through validation. Input material sources have now been identified in multiple regions -- including Canada, the United States, Europe, Chile and Argentina. This raw material supply chain and qualification work supports the Canada Development Company (DevCo) project announced Sept. 11, 2026, and was undertaken at Nano One facilities in Canada -- these work programs have also been supported by the government of Canada, the government of Quebec and the U.S. government.

Lithium and phosphate prequalified, iron advancing through validation

Three lithium carbonate suppliers have now been prequalified, spanning material sources in Argentina and Chile, while a further two suppliers in the United States and Canada are in the process of prequalification. Three phosphoric acid suppliers have now been prequalified, from sources in the United States and Europe, with a further two development-stage sources in Canada commencing early-stage sampling work. An iron oxide supplier in Canada is advancing toward tonne-scale validation, with a source in Europe also in the process of validation -- a further five potential suppliers of iron are in development.

Prequalification of feedstock involves the material being validated at pilot reactor scale using Nano One's process for CAM (cathode active material) quality and consistency. A typical feedstock qualification process may take up to two years to advance through A-Sample (gram to kilogram scale) to B-Sample (kilograms to tens of kilograms) to C-Sample (hundreds of kilograms to tonne-scale samples); this early qualification work is important as it will allow a shorter timeline and pathway to production for future planned LFP projects using Nano One's technology.

"Nano One has approached the building of LFP CAM production capacity outside of Asia with the objective of establishing an integrated supply chain from the ground up in order to provide for greater self-resiliency going forward. Over the past few years, the company has established key relationships with suppliers of input materials for lithium, iron and phosphate and has now made significant progress in advancing those feedstock sources through qualification with its own proprietary processing technology, from a diverse range of suppliers across multiple continents. The establishment of a diverse and resilient supply chain network is key, as the energy storage sector continues to be the major driver of growth in LFP demand, with defence applications emerging as a small but strategic segment with the strictest content procurement policies on sourcing," said Denis Geoffroy, chief operating officer of Nano One.

"Iron is seemingly everywhere, but the right purity, located and sourced from the right regions, simply isn't," Mr Geoffroy added. "We have worked diligently, collaborating with the key supply chain partners, and, thanks to the government of Canada's recent support for iron feedstock diversification, have now been able to research and develop our technology to expand the universe of iron even further."

One-Pot removes the pCAM chokepoint

Conventional LFP plants buy iron-phosphate precursor (pCAM) and react it with lithium carbonate. The International Energy Agency's Energy Technology Perspectives 2026 puts China's share of precursor cathode material above 95 per cent, so a plant outside China that depends on pCAM inherits the concentration regardless of where it sits.

One-Pot removes the step. It makes LFP cathode directly from lithium carbonate, iron and phosphoric acid -- raw materials produced in multiple jurisdictions -- so provenance is managed at the raw-material level rather than accepted from a precursor supplier. As the process accepts a range of iron inputs, Nano One is qualifying iron oxide from producers in Europe and Canada as well as iron from two U.S. producers. The process is patented and owned by Nano One.

The prequalification work also strengthens Nano One's licensing strategy: licensees building plants on One-Pot can draw on prequalified feedstock specifications and sources rather than starting supplier qualification from the very beginning, which can lead to an accelerated path to operations for future projects sped up by 12-plus months.

LFP for energy storage secures defence supply

Energy storage is building the LFP industrial base, and defence is a dual-use segment of that market -- a small but significantly strategic one. The Center for Strategic and International Studies notes that defence battery needs will remain a fraction of commercial demand, and the U.S. Department of Defense's (DoD) own 2026 outlook puts its lithium-ion demand in the hundreds of megawatt-hours a year, so defence buyers rely on the industrial base energy storage builds. Canada's emerging cell-manufacturing base is also moving toward LFP. For the company's customers, lithium and phosphate have been prequalified for Candiac's package, with iron oxide validation under way.

Canadian inputs, Canadian IP (intellectual property) and Canadian priorities

Canada's critical minerals list includes lithium, phosphorus and high-purity iron -- the three inputs to LFP cathode. Canada's defence industrial strategy prioritizes secure supply chains for key inputs and Canadian-owned intellectual property; Nano One's One-Pot process is patented and Canadian owned, part of a platform supported by over 50 granted patents held by the company.

A Canadian iron oxide producer is advancing toward tonne-scale validation and the recently announced Canada DevCo project plans to connect domestic upstream resources to local LFP cathode production. The company is also qualifying early-stage samples from producers and developers in Canada across all three inputs -- lithium, phosphate and iron -- the focus being on building a supply base in tandem with resource owners and developers in Canada that are bringing their projects on line in the coming years. The Candiac expansion is supported by the government of Canada, the government of Quebec and the U.S. Department of Defense (DoD).

Europe

Europe is one of the DevCo jurisdictions identified in the company's Aug. 26, 2026, strategy update, alongside Canada and the United States. The program has European sources for two of the three inputs: Phosphoric acid has been prequalified, and iron oxide is in validation.

Procurement rules are tightening

In the United States, Section 842 of the fiscal 2026 National Defense Authorization Act (10 U.S.C. paragraph 4865) requires the Department of War (DoW) to procure advanced batteries whose functional cell components -- including cathode materials -- are not owned, sourced, refined or produced by a foreign entity of concern (FEOC), starting with new acquisition programs on Jan. 1, 2028. A battery qualifies only where final assembly is by a non-FEOC, more than 95 per cent of functional-cell-component cost is non-FEOC, and it is produced without technology licensed from an FEOC.

The program documents the provenance of LFP cathode inputs for cell manufacturers subject to FEOC rules, and One-Pot is technology that Nano One owns. Under the U.S. Defense Production Act (DPA), a business producing in Canada qualifies as a domestic source, along with the fact that Canada is part of the U.S. National Technology and Industrial Base.

The company continues to target initial commercial LFP supply agreements for small-scale defence and energy storage applications; commissioning of the expanded approximately 800-tonne-per-annum Candiac capacity is expected in the first half of 2027.

About Nano One Materials Corp.

Nano One is a process technology company changing how cathode active materials (CAMs) are produced for lithium-ion batteries. Nano One's platform is built on a portfolio of patented processes, decades of manufacturing know-how and modular plant designs that enable scalable, cost-competitive and easier-to-permit CAM production with resilient supply chains. The technology eliminates waste water and byproducts while enabling regionally sourced raw materials and reducing exposure to foreign supply chain volatility. Modular plants are designed with fewer steps to reduce capex (capital expenditure), energy and environmental intensity and accelerate deployment, manufacturing and licensing. Product development and process optimization are based at Nano One's innovation centre in Burnaby, B.C., while piloting, demonstration and commercial production are based in Candiac, Que., supported by a team with more than 15 years of commercial cathode manufacturing experience supplying global cell manufacturers. Strategic collaborations with global partners (including Sumitomo Metal Mining, Rio Tinto and Worley) support Nano One's design-one/build-many growth strategy. Nano One has received funding support from the governments of Canada, the United States, Quebec and British Columbia.

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