Nano One Materials Corp TSX:NANO has achieved an important milestone by successfully completing the evaluation and benchmarking of its process, cathode materials and techno-economic modelling, under a Cathode Evaluation Agreement with a currently undisclosed global automotive manufacturer.
Success has led the parties to commence a new Cathode Evaluation Agreement that adds LFP to the program and expands the collaboration to target performance, cost and environmental specifications of cathode materials to meet the needs of the OEM. Financial terms towards the project are confidential, Nano One said this week.
The parties jointly evaluated Nano One’s NMC cathode materials for use in automotive lithium-ion batteries and demonstrated significant potential to reduce environmental footprint, capital costs and operating costs while meeting performance criteria.
Nano One is a widely followed clean technology company with a patented, scalable and low carbon intensity industrial process for the low-cost production of high-performance lithium-ion battery cathode materials. It employs approximately 120 people at its innovation and commercialisation hubs in British Columbia and Québec, including the only LFP plant and production team in North America.
Hatch study: significant environmental benefits
As part of the initial evaluation project, a third-party study, conducted by engineering firm Hatch Ltd., outlined that Nano One’s patented One-Pot and M2CAM (metal to cathode active material) processes offer significant environmental benefits and cost advantages when compared to conventional cathode processes. The report also identified opportunities for further optimisation and cost savings during scale-up and commercialisation.
The successful outcome of this initial evaluation project has led to Nano One and its automotive partner to enter a new phase of collaboration and a second Cathode Evaluation Agreement, during which the parties will expand their evaluation and focus on specific performance, cost and environmental parameters for NMC and LFP materials.
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In addition, Nano One and its automotive partner are developing a roadmap to execute on a joint vision to promote waste free high performing cathodes in world class cells. The joint vision aligns with Canadian and US government initiatives and the underlying objectives of the recent Inflation Reduction Act.
Nano One CTO, Dr. Stephen Campbell, explained further: “Nano One has successfully demonstrated that its unique M2CAM One-Pot process has the potential to significantly reduce process cost and eliminate waste while meeting performance targets for both its nickel rich and cobalt free materials. Our M2CAM technology can use lithium carbonate or lithium hydroxide and uses metals instead of metal sulfates. This makes it cost and capital competitive, it reduces steps in the supply chain, it lowers water usage by approximately 60% and it eliminates a large and environmentally wasteful amount of sodium sulfate by-product.”
Nano One’s technology could prevent over 2 billion kilograms of wasteful sodium sulphate by-product, for every 15 million electric vehicles or for each terawatt-hour of battery production.
Long term strategic potential
“Over the past 24 months our team has built a collaborative relationship with the automotive company,” said Andrew Muckstadt, VP of Business Development for Nano One, “and it is rewarding to know that they are pleased with the results and looking to do more with us.”
Muckstadt said that success in this project has given both parties added confidence in the long-term strategic potential of Nano One’s technology and led to the signing of an additional Evaluation agreement. “We share a common vision with our automotive partner to drive down cost, complexity and environmental footprint in the EV cathode supply chain, and we are now developing a roadmap for our collaborative efforts to fulfill this vision,” he said.
