NEO Battery Materials Ltd. signs multi-year offtake agreement with a lithium-ion battery company
October 3, 2025
by CM Staff
Under the Offtake, the Customer has committed to a total purchase volume of 50 tons of NEO’s silicon anode materials, NBMSiDE® P-200 and P-300N, over an initial 4-year term.
TORONTO — NEO Battery Materials Ltd. announces the signing of a multi-year offtake agreement and a Joint Development Agreement with a North American lithium-ion battery company specializing in performance-intensive, speciality applications, including unmanned systems (UAS), drones, and defense-related mobile systems.
Under the Offtake, the Customer has committed to a total purchase volume of 50 tons of NEO’s silicon anode materials, NBMSiDE® P-200 and P-300N, over an initial 4-year term. NEO says it anticipates supplying the initial P-200 and P-300N materials starting in 2026. Annual volumes are subject to production capacity and availability, qualification milestones, and operating deployment needs of the Customer’s products. The price for the silicon anode materials will reportedly be determined through a mutually agreed-upon pricing structure based on prevailing raw material and processing costs at the time of each supply.
To reinforce the Offtake supply commitments, the JDA reportedly establishes a collaborative framework in which NEO will supply its P-200 and P-300N silicon anodes for evaluation and validation within the Customer’s lithium-ion and lithium-polymer battery cells. Both parties will jointly develop and optimize battery performance via system-integrated field tests in UAS and drones. The Customer will manufacture battery cells with various chemistries and cell formats, and NEO says it will iteratively adjust its silicon battery technology based on feedback data.
In a press release, NEO Battery Materials stated that it “is progressing with its initiative to expand silicon anode production to 20 tons per year, following the positive validation of recent prototypes and direct demand for high-performance materials from end users.” Following 20-ton mass producibility tests and material quality/performance validation, the Company says it will scale up production to 240 tons per year to meet downstream demand and to support the Company’s in-house battery manufacturing business.
“This Offtake and JDA represent another critical milestone in the commercialization of NEO’s silicon battery technology, as we expand into synergistic, revenue-potential verticals of battery design and manufacturing. By partnering with a North American battery company, we are advancing our mission to establish a robust and high-quality North American battery supply chain. For the Western world, our Company aims to become the go-to alternative for high-performance battery materials and components to any end-use application,” expressed Mr. Spencer Huh, President & CEO of NEO.
