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NEO Battery Materials Initiates Defence & Industrial Drone Battery Cell Development Program for High-Performance Solutions

• Initiated High-Performance Battery Cell Development Program for Defence & Industrial Drones and Unmanned Aerial Vehicles (UAV)
  • Resolving Primary Performance Limitation in Drones, Batteries, via Leveraging Proprietary Silicon Battery Materials, P-200 & P-300N
• To Deliver Pouch-Type, Silicon-Enhanced Battery Cells with (i) Longer Flight Time, (ii) Heavier Payloads, and (iii) Reliable Operations
  • Expects to Offer Industry-Leading Drone Battery Performance with Low Costs
• Growing Need for Advanced Drone Battery Solutions from Industry Expansion & Government Funding
  
  

TORONTO, Aug. 18, 2025 (GLOBE NEWSWIRE) -- NEO Battery Materials Ltd. (鈥淣EO鈥� or the 鈥淐ompany鈥�) (TSXV: NBM) (OTC: NBMFF), a low-cost silicon battery materials developer that enables longer-running, rapid-charging batteries, is pleased to initiate a new development program for high-performance lithium-ion batteries tailored for the growing drone and unmanned aerial vehicle (UAV) industry. The project leverages NEO鈥檚 proprietary silicon battery materials, NBMSiDE^庐 P-200 and P-300N, to resolve the primary limitation in drone technology 鈥� battery performance.

The global drone and UAV market continues to expand across tactical defence, commercial delivery, precision agriculture, and emergency response. Despite the increasing operational demands of drones, battery performance remains the primary constraint, limiting flight time, payload capacity, and mission capability. Through this high-performance development program, NEO will deliver end-to-end battery solutions with (i) high capacity, (ii) high power output, and (iii) fast charging with reliable safety to address the demanding needs of drone and UAV manufacturers.

NEO鈥檚 pouch-type lithium-ion battery cells are under development, leveraging the Company鈥檚 advanced silicon anode materials combined with a complex battery design fit for advanced drone systems. Two distinct battery solutions will be designed and commercialized:

1. One incorporating the P-200 series for short-duration, ultra-high-capacity 鈥渙ne-time use鈥� or tactical drones for defence and military applications
2. Another using the new P-300N series for long-range, heavy-duty logistics, surveillance, and agricultural drones/UAVs requiring extended cycle life and operational range

Picture of NEO鈥檚 High-Performance, Pouch-Type Lithium-Ion Batteries Under Development for Drone & UAV Applications

Due to industry-leading capacities of 2,500 mAh/g for P-200 and 2,000 mAh/g for P-300N, both products are expected to offer performance levels that exceed conventional drone batteries while maintaining low costs. The Company鈥檚 initiative builds on recent technical successes, patent advancements, and new engineering expertise in battery manufacturing, positioning NEO to enter synergistic downstream segments.

Mr. Spencer Huh, President & CEO of NEO, commented, 鈥淒ue to an increase in global defence spending and a heightened emphasis on operational efficiencies, these macroeconomic trends are driving demand for higher-performance batteries in advanced surveillance technologies and unmanned systems (UAS). This aligns closely with the capabilities of NEO鈥檚 silicon-enhanced batteries.鈥�

鈥淎t the same time, there is clear diversification away from the dependence on Chinese-sourced batteries in critical drone systems in defence. NEO鈥檚 battery development initiative will provide a timely, domestically sourced option that offers both performance advantages and supply chain security,鈥� added Mr. Huh. 鈥淭o enter the high-performance drone battery market, we will first target local Korean manufacturers and partner with U.S. firms to secure government grants provided by the Department of Defence and the Department of Homeland Security.鈥�

Dr. J.S. Jeoung, SVP of Cell Development, expressed, 鈥淣ew advanced drone/UAV technologies require new battery designs, materials, and performance. Especially for defence drones, there is a critical need for battery manufacturers or foundries that can customize battery designs and shapes for different drone/UAV bodies. With our battery components manufacturing capability, we aim to become an end-to-end battery platform solution provider for the end-users.鈥�

About NEO Battery Materials Ltd.
NEO Battery聽Materials聽is聽a聽Canadian battery materials technology company focused on developing silicon anode materials for lithium-ion batteries in electric vehicles, electronics, and energy storage systems. With a patent-protected, low-cost manufacturing process, NEO Battery enables longer-running and ultra-fast charging batteries compared to existing state-of-the-art technologies. The Company aims to be a globally-leading producer of silicon anode materials for the electric vehicle and energy storage industries. For more information, please visit the Company鈥檚 website at: .

On Behalf of the Board of Directors
Spencer Huh
Director, President, and CEO

For Investor Relations, PR & More Information:
T: +1 (437) 451-7678

This news release includes certain forward-looking statements as well as management's objectives, strategies, beliefs and intentions. All information contained herein that is not clearly historical in nature may constitute forward-looking information. Generally, such forward-looking information can be identified notably by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including but not limited to: volatile stock prices; the general global markets and economic conditions; the possibility of write-downs and impairments; the risk associated with the research and development of advanced and battery-related technologies; the risk associated with the effectiveness and feasibility of technologies that have not yet been tested or proven on commercial scale; manufacturing process scale-up risks, including maintaining consistent material quality, production yields, and process reproducibility at a pilot or commercial scale; compatibility issues with existing battery chemistries and unforeseen the risks associated with entering into and maintaining collaborations, joint ventures, or partnerships with battery cell manufacturers, original equipment manufacturers, and various companies in the global battery supply chain; the risks associated with the construction, completion, and financing of commercial facilities including the Windsor and South Korean facilities; the risks associated with supply chain disruptions or cost fluctuations in raw materials, processing chemicals, and additive prices, impacting production costs and commercial viability; the risks associated with uninsurable risks arising during the course of research, development and production; competition faced by the Company in securing experienced personnel and financing; access to adequate infrastructure and resources to support battery materials research and development activities; the risks associated with changes in the technology regulatory regime governing the Company; the risks associated with the timely execution of the Company鈥檚 strategies and business plans; the risks associated with the lithium-ion battery industry鈥檚 demand and adoption of the Company鈥檚 silicon anode technology; market adoption and integration challenges, including the difficulty of incorporating silicon anodes within battery manufacturers and OEMs systems; the risks associated with the various environmental and political regulations the Company is subject to; risks related to regulatory and permitting delays; the reliance on key personnel; liquidity risks; the risk of litigation; risk management; and other risk factors as identified in the Company鈥檚 recent Financial Statements and MD&A and in recent securities filings for the Company which are available on . Forward-looking information is based on assumptions management believes to be reasonable at the time such statements are made, including but not limited to, continued R&D and commercialization activities, no material adverse change in precursor prices, development and commercialization plans to proceed in accordance with plans and such plans to achieve their stated expected outcomes, receipt of required regulatory approvals, and such other assumptions and factors as set out herein. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in the forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such forward-looking information. Such forward-looking information has been provided for the purpose of assisting investors in understanding the Company's business, operations, research and development, and commercialization plans and may not be appropriate for other purposes. Accordingly, readers should not place undue reliance on forward-looking information. Forward-looking information is made as of the date of this presentation, and the Company does not undertake to update such forward-looking information except in accordance with applicable securities laws.

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