Nano One Materials Corp (TSX:NANO, OTC:NNOMF) Senior Vice President of External Affairs Adam Johnson joined Proactive to discuss the company securing $12.9 million in funding from the US Department of Defense (DoD).
Johnson explained how this funding, combined with other government support, positions Nano One for future growth in North America, particularly in Canada and the US.
Proactive: Exciting news out of the company last week: $12.9 million US in funding from the US Department of Defense. It was a huge announcement. Can you share some thoughts on this funding and what it will do for Nano One?
Adam Johnson: Sure, happy to. It was a big day for us. The funding really puts us in a much stronger financial position. Between the DoD funds, additional government support, and some sales from unused land, along with tough cost reduction measures, we are now well-positioned to meet our objectives. These include the commercialization of our LFP (lithium iron phosphate) technology and moving into production in the near future.
There’s been a lot of talk not only about the DoD funding, but also other programs like the Department of Energy’s loans and the Inflation Reduction Act. Can you clarify how Nano One is engaging with these?
Yes, absolutely. It's a complex landscape. For example, we secured funding under the US Defense Production Act Title III, which is a unique program. Canada is considered a domestic source for these funds, which is quite rare. For the Department of Energy’s programs, funds are restricted to projects within the US, so once we expand operations there, we may access those. Lastly, the Mineral Security Partnerships (MSP) is another avenue we’re exploring, focusing on unlocking upstream resources, such as critical minerals, in places like Africa and South America.
What made the Department of Defense select Nano One for this significant investment?
The DoD recognized the strategic importance of what we’re doing, especially in the context of two major global disruptions: COVID-19 and Russia’s invasion of Ukraine. These events highlighted the vulnerabilities in global supply chains, particularly for critical materials. Congress allocated funds under the Defense Production Act to help create a stronger industrial base. Our LFP technology plays a key role in achieving this, starting in Canada and later expanding to the US and other regions.
What about support from the Canadian government? How are they involved in Nano One’s mission, particularly with competition from China?
Canada is working to align with the US and the EU in reducing reliance on Chinese battery materials. Currently, there’s a consultation process underway that will close on October 10th, assessing the potential for tariffs on Chinese battery imports. Additionally, Canada is considering putting a 100% duty on Chinese electric vehicles. It’s all about unlocking domestic supply, and our LFP solution is a key part of that.
How has the funding impacted your partners and stakeholders?
This funding is a huge shot of confidence for our potential partners and off-takers. Securing these DoD funds wasn’t easy, and the fact that we’ve done so speaks volumes about the credibility of our project. Even John Molnar, a prominent US politician, issued a bipartisan statement supporting this initiative. We’re excited to continue progressing and bring battery materials to North American markets.
Quotes have been lightly edited for clarity and style