Mr. Peter Pascali reports

PYROGENESIS SIGNS PLASMA-BASED CONTRACT WITH LEADING BATTERY RECYCLER

PyroGenesis Inc. has signed a contract with a company engaged in large-scale battery recycling, for the testing of high-temperature plasma during the material recovery and new battery production process. The client is one of the largest of its kind in the world. The client's name and the total value of the project are being withheld for competitive and confidentiality reasons.

Project highlights

Purpose:  using plasma to replace fossil fuel heating during lithium-ion battery recycling

Scope:  testing of PyroGenesis's plasma technology for superheating materials as part of the process to recover certain cathode or anode materials from end-of-life batteries

Timeline:  Q4 2025 to Q1 2026

Strategic impact:  Supports end customer goals to achieve all-electric operations for a cleaner, more sustainable supply chain for reusable battery material, reducing the reliance on new mining activities and providing a second life for EV (electric vehicles) batteries which, when retired, can have years of usable capacity left or be disassembled for material recovery. With the demand for lithium-ion batteries, especially for EVs, rapidly increasing, the volume of end-of-life lithium-ion batteries has the potential to reach 20,500 kilotons by 2040 from 900 kilotons in 2025, growing at an annual rate of 25 per cent. This emphasizes the need for effective recycling and repurposing strategies.

As previously reported in the outlook section of PyroGenesis's second quarter earnings report, PyroGenesis had been in negotiations with a North American battery material recycler. The contract announced today is for a testing program to examine how plasma can be used in the recovery of cathode and anode materials from end-of-life lithium batteries.

The client is among the world's largest recyclers of batteries. Extensive research and development by the client has proven the recovery potential of key minerals from batteries such as nickel, cobalt, copper and various oxides such as lithium.

"As the use of lithium-ion batteries increases, and as the previous generation of electric vehicle batteries begin to reach their end of life, it is imperative that closed-loop remediation systems, that can recover viable minerals to produce new battery material, become more widely utilized," said P. Peter Pascali, president and chief executive officer of PyroGenesis. "Companies like our client, who are using advanced technology while placing emphasis on all-electric processes -- including those that may benefit from PyroGenesis's plasma -- will help battery and vehicle manufacturers shield themselves against volatile raw material pricing and critical mineral access while reducing carbon footprint and improving efficiency. We are excited by the possibility of PyroGenesis playing a role in the future of battery and critical mineral recycling."

About PyroGenesis Inc.

PyroGenesis leverages 34 years of plasma technology leadership to deliver advanced engineering solutions to energy, propulsion, destruction, process heating, emissions and materials development challenges across heavy industry and defence. Its customers include global leaders in aluminum, aerospace, steel, iron ore, utilities, environmental services, military and government. From its Montreal headquarters and local manufacturing facilities, PyroGenesis's engineers, scientists and technicians drive innovation and commercialization of energy transition and ultra-high temperature technology. PyroGenesis's operations are ISO 9001:2015 and AS9100D certified, with ISO certification maintained since 1997. PyroGenesis's shares trade on the Toronto Stock Exchange (PYR), OTCQX (PYRGF) and Frankfurt (8PY1) stock exchanges.

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