Nano One Materials Corp TSX:NANO, the Canadian clean-tech company developing process technologies for lithium-ion battery cathode materials, has strengthened its alliance with Japan’s Sumitomo Metal Mining (SMM), underscoring the global race to secure cheaper and more sustainable supply chains for electric vehicles.
SMM, one of Japan’s largest mining and refining groups with operations in 14 countries, said it had “a high degree of confidence” in Nano One’s One-Pot process, which simplifies the production of cathode active materials (CAM) such as lithium iron phosphate (LFP). The method promises to lower costs, reduce waste water, and cut energy consumption — features that are increasingly prized by automakers and regulators alike.
“We are committed to offering cost-effective production of CAM to our customers while minimizing energy intensity, wastewater and supply chain uncertainty,” said Munekazu Kawata, executive officer and general manager of SMM’s battery materials division. “After much due diligence, we are convinced that Nano One’s technology is a high-quality, cost-effective manufacturing solution.”
SMM first invested C$16.9m in Nano One in September 2023, securing a strategic collaboration agreement aimed at commercialising the Canadian group’s technology. Since then, the two companies have run performance trials in Japan, modelled economic scenarios, conducted detailed intellectual property reviews, and tested product performance.
Both sides say these exercises have reinforced their conviction that the technology is ready for large-scale use.
The backing of SMM, which generated sales of about $11bn last year and holds more than $21bn in assets, represents a significant vote of confidence. The Tokyo-listed group is Japan’s biggest supplier of nickel-rich ternary cathodes such as lithium nickel cobalt aluminium oxide (NCA), used in many high-performance electric vehicles. In 2022, it also expanded into LFP through the acquisition of a cathode plant in Vietnam from Sumitomo Osaka Cement.
Rapid shift underway in global battery industry
The latest endorsement by SMM highlights the rapid shift underway in the global battery industry. Long seen as a cheaper but lower-range alternative to nickel-based chemistries, LFP has enjoyed a renaissance as improvements in energy density have allowed it to compete directly on performance while retaining advantages on cost, safety and durability.
Analysts now expect LFP to account for roughly half of all cathode demand within the next decade, up from less than a third today.
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That trend has already reshaped supply chains. Chinese manufacturers dominate LFP production, controlling both intellectual property and mass-production capacity. Western carmakers, eager to diversify their sources of supply and avoid over-reliance on China, have been seeking new partners. Nano One’s localisation-friendly One-Pot process — which removes steps from traditional production and simplifies the precursor materials used — is being positioned as a solution.
Alex Holmes, Nano One’s chief operating officer, said: “Current market dynamics amplify the strategic value of our technology in enabling the economic localization of cathode materials supply chains. The combined experience and collaboration between Sumitomo Metal Mining and Nano One over the past two years has led us to this significant milestone in our partnership….we are confident our partnership will lead to future commercial production opportunities that will accelerate the adoption of LFP and global supply chain security.”
Tie up brings credibility to Nano One
For Nano One, the tie-up with a Tier 1 supplier such as SMM brings credibility as well as resources. For SMM, the partnership offers a foothold in technology that could complement its existing portfolio and ensure it remains competitive as demand for LFP accelerates.
The collaboration remains at the pilot and pre-commercial stage, and Nano One has not disclosed when full-scale production might begin. But the deeper integration of two companies with complementary expertise — one in mining and large-scale production, the other in process innovation — points to an emerging trans-Pacific alliance in an industry still searching for a secure and sustainable path to electrification.
