Mr. P. Peter Pascali reports

PYROGENESIS CONFIRMS SUCCESSFUL PRIMARY TEST CAMPAIGN WITH LEADING BATTERY RECYCLER

PyroGenesis Inc. has released the successful results of a primary testing campaign with a leading battery recycler.

As announced previously (see press release dated Dec. 11, 2025), PyroGenesis signed a contract with a company engaged in large-scale battery recycling, to test PyroGenesis's high-temperature plasma as part of the client's material recovery and new battery production process. The client's extensive research and development have proved the recovery potential of key minerals (such as nickel, cobalt, copper and various oxides such as lithium) from batteries. Additionally, it was stated that the testing agreement had a timeline target of Q4 2025 to Q1 2026. With today's announcement, PyroGenesis confirms the success of the primary testing phase.

Separately, material samples from the tests were shipped to the client's facility to confirm various performance, yield and chemistry measurements.

The recent tests were witnessed by a team of client engineers at PyroGenesis's facilities. These tests confirmed the anticipated outcomes from using plasma in its specific application.

Given the above, there may be a subsequent testing phase required which, if needed, would be expected to occur before the end of Q2 2026. The client's ultimate goal would be to purchase an initial one-megawatt plasma torch system, followed by a subsequent purchase of five one-megawatt plasma torch systems or one five-megawatt plasma torch system. The client has indicated a potential need for multiple five-megawatt plasma torch systems. Despite the news announced today, there is no certainty as to if, and when, further tests may be required or if any future plasma torch systems would ever be purchased.

Project highlights

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

Scope:  confirmation after primary testing that PyroGenesis's plasma technology for superheating materials as part of the process to recover cathode or anode materials from batteries is a viable option; subsequent testing may occur toward scaling up to the potential purchase of: (i) an initial one-megawatt plasma torch system, followed by (ii) five one-megawatt plasma systems or one five-megawatt plasma torch system.

Timeline:  additional testing and go/no-go decisions toward scale-up to be completed by end of Q2 2026

Strategic impact:  supports end customer goals to achieve all-electric operations to increase competitiveness against overseas manufacturers for a cleaner, more sustainable supply chain for reusable battery material, reducing the reliance on new mining activities, and to provide a second life for batteries which, when retired, can have years of usable capacity left or be disassembled for material recovery; with the demand for lithium-ion batteries rapidly increasing, the volume of end-of-life lithium-ion batteries is expected to reach 20.5 million tons by 2040 from 900,000 tons in 2025, growing at an annual rate of 25 per cent; this emphasizes the need for effective recycling and repurposing strategies.

"As global electrification accelerates and the first major wave of large lithium-ion batteries approaches retirement, the test results we announced today confirm that plasma may be a valuable component in the manufacturing life cycle as the focus shifts from battery production to complete battery life cycle management," said P. Peter Pascali, president and chief executive officer of PyroGenesis. "The long-term sustainability and economics of the battery sector will increasingly depend on scalable, closed-loop recovery systems, capable of repurposing high-value minerals into new battery manufacturing. By deploying advanced technologies that include PyroGenesis's proven electric-based plasma torch systems, companies like our client are helping transform end-of-life batteries from a waste challenge into a strategic resource. In doing so, they enable battery manufacturers to reduce exposure to commodity price volatility and supply chain constraints for critical minerals while simultaneously: (i) lowering emissions; (ii) improving operational efficiency; and (iii) strengthening supply security. These results are an important first step in confirming the broad-based impact that switching to plasma can have on this industry challenge."

About PyroGenesis Inc.

PyroGenesis leverages 35 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 ultrahigh-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 (symbol: PYR), the OTCQX exchange (symbol: PYRGF) and the Frankfurt Stock Exchange (symbol: 8PY1).

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