NEO Battery Materials Ltd. signed a strategic memorandum of understanding (MOU) with Automobile & PCB establishing 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.

NEO Battery Materials Ltd. is a Vancouver-based company focused on electric vehicle lithium-ion battery materials. NEO has a focus on producing silicon anode materials through its proprietary single-step nanocoating process, which provides improvements in capacity and efficiency over lithium-ion batteries using graphite in their anode materials. NEO’s technology effectively counters volume expansion in the Si anode.

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 US, 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 dominance in product quality and management, Yongsan is a reputable vendor to Hyundai, Kia Motors, Suzuki, Geely Auto, and BYD Auto.