NEO Battery Materials provides update on South Korean silicon anode commercial plant
by CM Staff
By the first half of 2024, NEO targets to complete the plant construction with an initial commercial capacity of 240 tonnes per annum (TPA).
TORONTO — NEO Battery Materials Ltd., a silicon anode materials developer that reportedly enables longer-running, rapid-charging lithium-ion batteries, announces that the Company has recently conducted an internal feasibility study of its Silicon Anode Commercial Plant in South Korea. The preliminary assessment has reportedly yielded robust economics and profitability for NEO’s cost-transformative silicon anode materials (NBMSiDE™), demonstrating the substantial potential for scalability, international plant expansion, and mass adoption in electric vehicle (EV) batteries. NEO will appoint a 3rd party engineering firm to validate the projections and figures through an industry-approved feasibility study.
The internal feasibility study has been conducted with the assumption that the South Korean Commercial Plant is the only operational, revenue-generating asset of NEO Battery Materials. The Study utilizes updated mass-production models generated by the EPC contractor, preferential bids submitted by construction contractors, cost projections of the optimized NBMSiDE™ derived from supplier and market quotations, and general macroeconomic conditions of the past fiscal year.
By the first half of 2024, NEO targets to complete the plant construction with an initial commercial capacity of 240 tonnes per annum (TPA). Financial projections integrated an equal proportional production of the two main product lines of NBMSiDE™, P-100 and P-200. Each silicon anode material will be supplied to global battery manufacturers and EV automakers at an initial average price of US$ 50,000 per tonne (US$ 50 per kg), resulting in maximum annual revenues of US$ 12.0 million at 240 TPA and US$ 50.0 million at 1,000 TPA.
Through NEO’s proprietary one-step manufacturing process and the use of a raw material, metallurgical-grade silicon or MG-Si, the Company expects to decrease the selling price of NBMSiDE™ while widening gross and EBIT margins with Phase I to Phase IV expansion. With mass production and material optimization, the Company says they are projected to achieve a 70% to 80% cost reduction in the selling price compared to current silicon anode options.
