Mr. Spencer Huh reports

NEO BATTERY LAUNCHES FPV STRIKE DRONE OR LOITERING MUNITION BATTERY WITH HIGH-POWER & ENERGY PERFORMANCE

Neo Battery Materials Ltd. has officially launched its high-power and energy battery products specifically engineered for first-person view (FPV) strike drones or loitering munitions (LMs), demonstrating a 82-per-cent increase in energy density and doubling in flight range compared with Chinese incumbents.

• Launches high-power and energy FPV strike drone battery delivering 82-per-cent and 103-per-cent respective increase in energy density, and flight range versus Chinese incumbents at identical size, dimensions and current;
• One of first non-Chinese pouch battery alternatives for FPV strike drones with United States NDAA (National Defense Authorization Act) compliance for procurement eligibility into Department of War and allied military entities;
• Targets mass-market deployment at competitive price points across Ukraine, the U.S., South Korea, Japan and governments stockpiling FPV drones for national preparedness;
• Strategic integration into dual-use markets, including drones for precision agriculture, surveillance and industrial logistics.

Neo's new high performance battery products address the significant supply deficit in the global defense battery market, offering one of the first non-Chinese pouch battery alternatives for FPV strike drones. The company's drone battery platform offers a secure supply for defense drone/robotics applications and ensures compliance with the U.S. FY2026 National Defense Authorization Act (NDAA), supporting eligibility for direct procurement into the Department of War (DoW) and allied military organizations.

Both 6.5 and 11.5 Ah (ampere-hour) products are precision engineered to deliver improved stability and flight time under the high-intensity discharge conditions required for one-way strike drones. At identical size and dimensions, Neo's 6.5 Ah packs delivered an 82-per-cent increase in energy density compared with a commercial Chinese pack, enhancing from 129 to 235 watt-hours per kilogram (Wh/kg) or raising capacity from 3.3 to 6.5 Ah. In a simulated 250 km/h strike mission, the optimization translated into a 102.9-per-cent increase in flight range from 24.4 km to 49.5 km, given the same amperage (current delivery). The higher-capacity 11.5 Ah variant demonstrated a stronger power profile and lower temperature rise compared with a leading silicon battery product. Based on a 10C or six-minute discharge test, Neo's cell retained 78.8 per cent of capacity compared with 48 per cent for its benchmark.

Ensuring cost-competitive pricing, Neo developed the product lines to meet growing demand in Ukraine and the United States, where the transition toward a non-Chinese drone supply chain has become a procurement priority. The company is in discussions across Ukraine, the U.S., South Korea and Japan regarding the integration of these cells into active defence systems. Serving a dual-use purpose, the FPV strike drone battery portfolio will be further distributed to drones for precision agriculture, security/inspection and industrial logistics. To accommodate non-military use, both products are expected to retain a cycle life of approximately 1,000 (dis)charging cycles.

Beyond these initial engagements, Neo will actively support allied governments in building strategic drone inventories. Countries including Poland, Estonia, the Czech Republic, India and Singapore are incorporating large-scale stockpiling of FPV strike drones for their national preparedness strategies. By providing a reliable alternative to Chinese-dependent components, Neo positions itself to directly support international efforts to secure drone manufacturing and ensure national security concerns are addressed through supply chain resilience.

The FPV drone battery product lines are undergoing UN 38.3, KC and other relevant certifications to validate transport and usage safety. These qualifications will enable export readiness and support seamless commercial integration across international defense and industrial markets.

Neo is advancing a portfolio of next-generation battery technologies, including customized, premium cells with energy densities in the 300 to 150 Wh/kg range for high performance, bespoke drone and aerospace platforms. These programs position Neo to expand beyond the mass-market FPV segment into higher-value defence and aerospace applications, supporting a multitier growth strategy and long-term margin expansion. For this product launch and short-term strategy, however, the company is prioritizing the mass-market segment, where competitive price points relative to Chinese products are required to enable higher-volume deployment of FPV strike drones and loitering munitions.

"We are witnessing a fundamental shift in the economics of modern defense, where low-cost FPV drones can now neutralize armored vehicles or missile systems costing millions of dollars," stated Spencer Huh, president and chief executive officer of Neo. "Asymmetric warfare has prompted governments and defence ministries to pivot from high-cost legacy platforms towards mass-produced, uncrewed drones and robotics. In that context, a Chinese-independent supply chain has become a strategic requirement for national security. Neo intends to reliably deliver the high performance battery solutions that allow allies to achieve true supply chain independence and maintain their strategic advantage."

About Neo Battery Materials Ltd .

Neo Battery Materials is a Canadian battery technology company focused on developing and producing silicon-enhanced lithium-ion batteries in drones, unmanned aerial vehicles (UAV), robotics, unmanned systems, electronics, electric vehicles and energy storage systems for AI (artificial intelligence) data centres. With a patent-protected, low-cost manufacturing process, Neo Battery enables longer-running and ultrafast-charging batteries and provides end-to-end battery solutions from materials selection, cell architecture and process optimization. The company aims to be a globally leading producer of high performance lithium-ion battery components and materials, building a secure, robust battery supply chain in North America.

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