NEO Battery Materials Ltd. has signed a Memorandum of Understanding (“MOU“) with the Province of Gyeonggi (“Gyeonggi-do” or the “Province“) on May 30th. The MOU establishes grounds for investments and cooperation between NEO and Gyeonggi-do to advance the mass production of silicon anode materials for electric vehicle (EV) batteries.
Through the MOU, NBM Korea Co., Ltd., a wholly owned subsidiary of NEO Battery Materials, will initially invest, over the next 5 years, 24 billion KRW or approximately 25 million CAD to support the construction and expansion of the silicon anode commercial plant located on a 107,000 sq. ft. site in Oseong Foreign Investment Complex, Pyeongtaek City, Gyeonggi-do. With the discussed upfront capital investments, NEO emphasizes a priority for mass-production optimization and validation as minimizing the timeline to enter the market and establishing the Company’s presence within the EV supply chain is vital to technology adoption in the industry. Along with the Province’s officials and entities, the Company aims to transform Gyeonggi-do into an essential manufacturing and R&D hub of silicon anode materials.
As Gyeonggi Province has also agreed and recognized the importance of commercializing silicon anode materials, which have emerged as an essential next-step in the development of rechargeable battery materials, the Province has decided to provide active and continuous administrative and business support to enable the early mass-production of NBMSiDE™. In addition, both NEO and the Province can establish and operate a Working-Level Committee for standards of comprehensive cooperation, and separate mutual consultations will be held successively.
Mr. Han Kyu Lee, 2nd Vice-Governor of Administration of Gyeonggi-do, commented, “Lithium-ion batteries are the next catalyst for South Korea’s economic growth, succeeding the semiconductor industry, but the Korean battery industry is only a house built on sand without distinctive competitiveness and innovation in battery material technology. We expect that the cooperation between NEO Battery Materials, which possesses silicon anode material technology, and the Gyeonggi Province will substantially contribute to increasing the competitiveness of battery material technology.”
Mr. Spencer Huh, President and CEO of NEO, commented, “Through this MOU, NEO Battery Materials has secured a practical and useful partnership with the Province of Gyeonggi, which is the most populous and largest provincial economy in South Korea. We are incredibly excited to establish another step to advance the commercialization of NEO’s silicon anode through Gyeonggi-do’s various support and cooperation. Additionally, with the signing of the MOU, we expect that ongoing corporate developments will be able to proceed and produce results without problem and deterrence to the plan.“