Establishment Of Canada’s First Silicon Anode Facility

TORONTO - NEO Battery Materials Ltd. entered into a definitive lease agreement with the City of Windsor, Ontario securing 8 acres of surplus lands at Windsor Airport. This significant milestone marks a critical step toward establishing Canada’s first advanced silicon anode manufacturing facility, further solidifying NEO’s role in strengthening the Canadian battery value chain.

Located in one of Canada’s key automotive and battery hubs, NEO will lease 8 acres or 350,000 square feet to construct a commercial plant capable of producing 5,000 tons of silicon anodes annually. Initially planning to invest CAD 69 million, NEO expects to invest approximately CAD 120 million in total over the next 8 years for future expansion of the Windsor facility and value-added projects. The investment is expected to create over 100 skilled jobs when fully operational. NEO’s facility is expected to play a pivotal role in reducing reliance on imported materials and enhancing the resilience of the burgeoning battery supply chain in Ontario and across North America.

With an initial term of 49 years, the Agreement includes tax incentives and favourable lease terms compared to market rates, reflecting Windsor’s commitment to fostering economic growth and innovation in battery technology. Through a Community Improvement Plan, Windsor City Council has approved, in principle, a grant for NEO Battery Materials to support their establishment and operations. NEO’s decision to establish its first North American manufacturing facility in Windsor underscores the Company’s confidence in the region’s infrastructure, workforce, and business-friendly environment.