NEO Battery Materials is partnering with a specialized Asian drone manufacturer on a joint development agreement (JDA) and has secured a CAD $4.5 million purchase order for their high-performance, silicon-enhanced battery solutions.

This collaboration aims to develop advanced batteries that offer increased energy density and capacity for the partner's AI-powered drones and UAVs, ultimately enhancing flight time and payload capacity.

“We are highly pleased to announce this milestone for NEO’s high-performance silicon battery development initiative for defence and industrial drone/UAVs,” commented Mr. Spencer Huh, President & CEO of NEO. “With our team from the globally-largest battery manufacturers and a proven track-record of commercializing complex battery products, we aim to build a secure supply chain outside of China to become a tier-1 battery solution vendor for U.S., European, and Asian drone/UAV manufacturers.”

Under the JDA, NEO Battery will design and manufacture two advanced battery products tailored to the Customer’s drone/UAV systems. The first product will incorporate the P-200 silicon anode series to produce high-capacity, high-power-output batteries designed for short-duration, combat drone missions. The second product will leverage the P-300N silicon series for industrial and surveillance UAVs, enabling extended flight-time capabilities and heavier payload capacities.

Structured in a three-phased development, NEO shall deliver (i) robust capacity retention and safety at high discharge/output rates and (ii) high energy density exceeding 350 watt-hours per kilogram (Wh/kg), representing more than a 40 to 59 percent increase compared to conventional drone batteries of 220 to 250 Wh/kg. The Customer will perform system-level integration of developed battery solutions and conduct rigorous, advanced field trials for final commercial deployment.