- Nano One Materials Corp. (TSX:NANO) stock jumped more than 25 per cent Thursday after it was awarded US$12.9 million by the U.S. Department of Defense.
- The award is aimed at accelerating the formation of a resilient industrial base and lithium iron phosphate battery supply chain in the United States and Canada.
- The project will support work underway at Nano One facilities in Burnaby, British Columbia, and Candiac, Québec, from July 1, 2024, through 2026.
- Shares of Nano One Materials were trading at C$0.88 as of 1:09 pm ET, and the stock is down 70.95 per cent this year.
Nano One Materials Corp. (TSX:NANO; OTC Pink:NNOMF; FRA:LBMB) stock jumped more than 25 per cent Thursday after it was awarded US$12.9 million by the U.S. Department of Defense (DoD).
Nano One was given the award, worth roughly C$17.8 million, to accelerate the formation of a resilient industrial base and lithium iron phosphate (LFP) battery supply chain in the United States and Canada.
The DoD made the award through the Defense Production Act Investments office’s Title III program to the clean technology company to address energy security requirements of the defence sector.
In a news release Thursday, Nano One stated the project will support work at the company’s facilities in Burnaby, British Columbia, and Candiac, Québec, from July 1, 2024, through 2026.
“The funds will expand capacity at Nano One’s Candiac, Québec location, which is North America’s only lithium iron phosphate production facility,” the news release stated. “The award is broadly focused on improving energy security by accelerating the formation of a resilient industrial base and LFP battery supply chain in the United States and Canada.”
“Nano One is committed to resilient battery materials supply chains in North America, and commends the U.S .Department of Defense for its support across the lithium-ion battery sector,” Dan Blondal, CEO and founder of Nano One, said in a statement. “These funds build on our existing assets in Candiac and other sources of capital to accelerate our partnerships, sales pipeline and commercialization plans while enhancing value for our collaborators and shareholders.
“DoD’s due diligence not only confirms emerging market demand for LFP and its importance to a strong industrial base for energy security, but also recognizes Nano One for its deep know-how, its strategic objectives and for the advantages of its One-Pot LFP production process.”
The Government of Canada has also recognized the emerging importance of the LFP supply chain by placing lithium, phosphorous and high-purity iron on the Critical Minerals list.
LFP technology offers significant advantages in terms of cost, safety, security of supply, and environmental impact compared with traditional lithium nickel manganese cobalt oxide cathode materials, according to Nano One.
According to Nano One Materials, LFP is suited to high-volume, heavy-duty applications in stationary energy storage systems and electric vehicles. Fastmarkets reported that LFP batteries accounted for 65 per cent of the China’s total battery output in the first six months of 2023. Globally, China dominates approximately 95 per cent of the world’s LFP production capacity, according to the International Energy Agency.
About Nano One
Nano One Materials Corp. is a clean technology company with a patented process for the low-cost, low-greenhouse-gas production of lithium-ion battery cathode active materials. Applications include electric vehicles, stationary energy storage systems, and consumer electronics.
Shares of Nano One Materials Corp. (TSXV:NANO) are up 25.71 per cent, trading at C$0.88 as of 1:09 pm ET. Nano One stock is down 70.95 per cent this year, however.
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(Top photo: Nano One Materials Corp.)