Clean technology company Nano One (TSX: NANO) (OTC: NNOMF) (Frankfurt: LBMB), the specialist producer of battery cathode materials, has completed trials ahead of schedule, progressing to producing with full commercial-size reactors.
The Canadian firm has patented One-Pot technology for the production of lithium iron phosphate (LFP), the cathode material used in electric vehicles, electric storage and commercial electronics.
The technology is very cost effective and has a low environmental impact. Over the last few months trials at the company’s Candiac plant have shown that LFP production can be scaled up to commercial size while keeping results consistent with lab scale.
The company said trial results have helped identify key processing parameters and will expedite the commercial scale-up process.
Nano One’s blue chip strategic collaborations
Nano One already has in place strategic collaborations and partnerships with electric vehicle makers and major industry supply chain companies like BASF, Umicore and Rio Tinto.
Following the trials the company plans to ship commercial-scale LFP samples to select customers for evaluation. This is planned for the last quarter of this year.
Managing to produce high-quality LFP cathode material ahead of schedule will help fast-track Nano One’s’s progress towards profitability.
Nano One’s VP Business Development Andrew Muckstadt said this week, “we are able to talk to select customers about taking orders and potentially supplying them with LFP for their business plans in the future. As major players are still determining their supply chain and partners, we are demonstrating we have a viable product that can be produced in North America and replicated around the world.”
Shipping commercial-scale samples is the precursor for discussions on binding offtake agreements for both the output from the company’s existing Candiac plant and the first full commercial line to be built nearby.
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Battery supply chain is being redefined
The battery supply chain in North America is being redefined since the introduction of the US Inflation Reduction Act in summer 2022 which is heavily focused on making sure that electric vehicle makers and other equipment manufacturers “buy local” when it comes to components and materials.
The bill provides tax credits of up to $7,500 per vehicle to OEMs who ensure that their battery supplies are sourced mostly in North America and a few other countries.
There are very few battery materials makers such as Nano One out there, who are in the position to start supplying in a relatively short time from now. Many are still years away from having a large-enough production process in place.
Reactors being optimized
Nano One’s newly installed 200 tonne per year reactors are in the process of being optimized for scale-up and medium-term plans include expanding production to 2,000 tonnes, expected towards the end of 2024.
According to the Center for Global Energy Policy at Columbia University global demand for lithium-ion batteries reached almost 700 gigawatt-hours (GWh) last year, a 67% increase year on year. As the key platform technology for electric vehicles, energy storage systems and portables, these types of batteries are expected to see demand grow at an annual compound rate of 20% over the next decade.
