Mr. Spencer Huh reports

Neo BATTERY MATERIALS SIGNS LETTER OF INTENT FOR JOINT VENTURE WITH LOTUS ENERGY RECYCLING

Neo Battery Materials Ltd. signed a non-binding letter of intent with collaborating partner Lotus Energy Recycling Pty. Ltd. on Oct. 8, 2024. The LOI outlines the intent to form a joint venture focused on recycling end-of-life photovoltaic cells and solar panels in North America. Recovering valuable silicon materials for the lithium-ion-battery supply chain will be a key emphasis of the project. There are no material terms or considerations with respect to the LOI.

As per the press release on July 26, 2024, Neo Battery and Lotus entered into a collaboration agreement to develop silicon anode products manufactured from recycled solar PV cells. Since then, both parties have actively discussed exploring JV opportunities to create a North American recycling footprint. The initiative prioritizes: (i) derisking environmental concerns during silicon raw material production; and (ii) diversifying Neo Battery's silicon upstream sources.

The planned JV will establish physical operations in Canada to collect, dismantle and recycle end-of-life PV cells and solar panels. The primary goal is to recover high-purity silicon and other valuable materials to create a sustainable, resilient and circular supply chain for battery materials and cell production. JV activities are expected to commence soon after a definitive agreement is reached between both parties.

As the LOI outlines, the JV aims to leverage Lotus's proprietary recycling know-how and Neo Battery's expertise in silicon anode manufacturing. Key technological priorities are optimizing the recovered silicon for battery applications and improving recycling process operations. Moreover, joint research and development activities are planned to refine the processes and technologies employed in the recycling operations.

Spencer Huh, director, president and chief executive officer of Neo Battery, stated: "Following our collaboration agreement, we have initiated sample testing and evaluation of Lotus's recycled silicon feedstock. We aim to invest our resources to optimize these materials as the theme and importance of supply chain circularity and resiliency continue to grow. We aim to negotiate in good faith to reach an agreement to initiate Canadian recycling operations."

Anthony Vippond, co-founder and chief executive officer of Lotus, expressed: "The innovation objectives between Lotus and Neo are well aligned. We both strongly believe in the application of silicon into advanced battery materials. This recent LOI is a step towards our joint vision for electric vehicle battery applications. With complementary technologies and objectives, both companies will explore mutual opportunities via the proposed partnership and co-location of our operations."

About Lotus Energy Recycling Pty. Ltd.

Lotus is an Australian-based company specializing in the recycling of photovoltaic solar cells and panels. Lotus employs proprietary technologies to recover high-purity silicon, ensuring environmentally responsible disposal and repurposing of e-waste. Headquartered in Melbourne, Lotus plans to establish a significant presence by constructing commercial facilities in Sydney, Melbourne and Germany.

About Neo Battery Materials Ltd.

Neo Battery is a Canadian battery material technology company focused on developing silicon anode materials for lithium-ion batteries in electric vehicles, electronics and energy storage systems. With a patent-protected, low-cost manufacturing process, Neo Battery enables longer-running and ultrafast-charging batteries compared with existing state-of-the-art technologies. The company aims to be a globally leading producer of silicon anode materials for the electric vehicle and energy storage industries.

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