Mr. Spencer Huh reports

NEO BATTERY MATERIALS ENTERS INTO BINDING AGREEMENT WITH PREFERRED CONTRACTOR FOR SOUTH KOREAN COMMERCIAL PLANT CONSTRUCTION

Neo Battery Materials Ltd. has entered into a binding agreement with its preferred contractor and expects the construction of the South Korean commercial plant to initiate next month in August.

Per the press release dated May 19, 2023, Neo had designated its preferred contractor for final negotiation and due diligence regarding construction project details, estimates and timelines. Through successful collaboration between the company's commercialization engineering team and the contractor for the past month, Neo Battery Materials has negotiated favourable project budgets, construction work deliverables and other necessary terms for the timely completion of the commercial plant.

In mid to late August, the contractor will break ground for the site clearance, civil engineering and foundational construction work. With a targeted completion by the first half of 2024, the facility will supply low-cost, high-performance silicon anode materials to EV (electric vehicle) battery cell manufacturers in South Korea, and across the United States and Europe. With an initial capacity of 240 tons per year, Neo Battery Materials will scale the manufacturing capacity up to 5,000 tons, to supply approximately three million EVs annually.

Spencer Huh, president and chief executive officer of Neo, commented: "The binding agreement with our preferred contractor has come at the right time as we continue actively co-operating with global battery manufacturers and EV automakers to optimize the materials for commercial-level specification and use. Together with the help of Gyeonggi province, we will build out the commercial plant strategically through the use of grants, subsidies and strategic investments across the South Korean battery supply chain."

About Neo Battery Materials Ltd.

Neo Battery Materials is a Vancouver-based company focused on electric vehicle lithium-ion battery materials. Neo has a focus on producing silicon anode materials through its proprietary single-step nanocoating process, which provides improvements in capacity and efficiency over lithium-ion batteries using graphite in their anode materials. The company intends to become a silicon anode active materials supplier to the electric vehicle industry.

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