NEO Battery Materials signs MOU with Automobile & PCB Inc.
by CM Staff
The MOU establishes strategic investment and cooperation between NEO and A&P to advance the Korean mass production facility of NEO’s silicon anode materials for electric vehicle (EV) lithium-ion batteries.
VANCOUVER — NEO Battery Materials Ltd. announces that the Company has signed a Strategic Memorandum of Understanding (MOU) with Automobile & PCB Inc. on June 7th. The MOU establishes strategic investment and cooperation between NEO and A&P to advance the Korean mass production facility of NEO’s silicon anode materials for electric vehicle (EV) lithium-ion batteries.
A&P is a public company listed on the KOSPI, the main board of the Korea Exchange. In 2021, A&P has recorded annual revenues of CAD $70M with its automotive parts business, and its related company, Yongsan, generated automotive parts manufacturing revenues of CAD $600M in 2021. Yongsan possesses 17 production sites across 5 countries including South Korea, China, the U.S., Mexico, and India, and it employs ~3,300 workers across the company’s global network.
Through this strategic MOU, NEO and A&P will pursue cooperation to construct NEO’s Silicon Anode Commercial Plant in South Korea by attracting strategic investments to NBM Korea Co. Ltd., a wholly owned subsidiary of NEO. A&P will actively support NEO in its commercialization efforts, and both parties have established a top priority of pursuing strategic investments into NBM Korea.
Both parties have also agreed to take advantage of the network of A&P’s related companies, YSP and Yongsan, to strengthen NEO’s global business network. Through its reported product quality and management, Yongsan is a vendor to Hyundai, Kia Motors, Suzuki, Geely Auto, and BYD Auto.
Mr. Spencer Huh, President and CEO of NEO, commented, “Through this MOU, NEO Battery Materials is closer to completing the initial strategic financing through NBM Korea. We are very excited to establish a practical business relationship with A&P in South Korea. A&P has been in the automotive industry for more than 45 years through its direct and related companies. We strongly believe that we could secure the first and meaningful financing shortly.”