Nano One Materials Candiac, a wholly-owned subsidiary of Nano One Materials Corp [TSX: NANO], has been granted C$18 million in financing from the Government of Québec, which includes a C$15 million loan from the Ministry of the Economy, Innovation and Energy (MEIE) through Investissement Québec, and a C$3 million grant from the Ministry of the Environment, the Fight against Climate Change, Wildlife and Parks (MELCCFP).
This funding will enable the continuation of piloting and commercialisation of Nano One’s One-Pot process, in addition to increasing production capacity of the Candiac plant.
Nano One Materials Corp is a clean technology company changing how the world makes cathode active materials for lithium-ion batteries. Applications include electric vehicles (EVs), stationary energy storage systems (ESS), and consumer electronics. Its patented One-Pot process reduces costs, carbon intensity (lower GHGs), environmental footprint, and reliance on problematic supply chains.
The C$15 million loan directly supports approximately C$63.4 million of eligible expenditures between January 1, 2023, through December 31, 2026, at Nano One’s lithium iron phosphate (LFP) production facility in Candiac. The company estimates that C$30 million of eligible expenditures have been incurred to date. The loan repayment period begins 60 months after first disbursement and will be repaid over a subsequent 60-month period.
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The C$3M grant also reimburses expenses incurred at the Candiac facility, and is directed towards a transition to cleaner and more efficient manufacturing.
Dan Blondal, CEO of Nano One said “We made a pivotal acquisition in Candiac…of North America’s only existing LFP production facility and have since integrated its highly experienced team. Candiac is positioned as a center of excellence to support larger scale production facilities and a localized supply chain that also reduces the environmental footprint of batteries, and we are delighted to be leading this in Québec.”
The funds apply to some of the expenses incurred during the construction and operation of the company’s 200 tpa piloting line that was successfully commissioned in 2023, and for capacity expansion planned at the facility in 2025 and 2026.
Québec’s contributions to Nano One’s Candiac facility complement the US$12.9 million in non-dilutive funding awarded to Nano One by the US Department of Defense on September 30, 2024 which is similarly directed towards capacity expansion expenses at the Candiac facility.
Support from Québec and the US government accelerates trials, demonstration and commercialization. This support also reinforces Nano One and Québec as leaders in the emerging North American lithium-ion battery supply chain for electric vehicles (EV’s), energy storage systems (ESS), and defence applications.
What are the benefits of Nano One’s One-Pot process?
The benefits of One-Pot mainly attribute to the elimination of the iron and phosphate precursor steps (pCAM) by integrating them with the lithium addition step (CAM), high efficiency thermal processing, and the elimination of sodium sulphate wastewater. This has the potential to reduce complexity, costs, footprint, and energy intensity compared to incumbent processes.
One-Pot enabled facilities could also be easier to site, permit, construct, operate and be decoupled from foreign supply chains of concern. Depending on energy sources and jurisdiction, there could also be a reduction of GHG emissions by up to 50% compared to incumbent methods of producing LFP CAM, as outlined in a full life cycle assessment carried out by Minviro in 2023.
“By investing C$18 million in the Nano One pilot plant project, we are giving ourselves the means to strengthen Québec’s expertise in the manufacturing of Québec green batteries,” said Christine Fréchette, Minister of the Economy, Innovation and Energy and Minister responsible for Regional Economic Development. “It’s with initiatives like these that our government continues to position Québec as a leader in this sector of the future for our energy transition and our economy.”
