Nano One Materials (TSX:NANO), the Canadian lithium-ion battery materials specialist, has signed a new joint development agreement with Michigan-based Our Next Energy (ONE) to collaborate on North American production of lithium iron phosphate (LFP) cathode active materials.
The deal is interesting because it brings together two innovative companies in the EV battery supply chain, both active in North America where the demand for locally produced EV battery raw materials, components and batteries is rising sharply and is actively being supported through regulation and government financing.
Nano One is currently the only company in North America producing LFP cathode active materials. It uses a patented process to minimise costs and its environmental footprint. Our Next Energy is an energy storage company developing electric vehicle batteries with longer functional ranges than its competitors. Its Gemini battery being developed with the support of BMW is designed to extend the range of a ride to 600 miles, significantly beyond the current EV battery reach of 150 miles.
The two companies intend to collaborate on the validation, qualification, and production of a North American supply of LFP cathode active materials.
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Nano One’s Quebec plant to be repurposed
The cathode materials will be produced at Nano One’s Candiac facilities in Quebec for potential use in ONE’s production LFP cells used in Aries and Gemini batteries. The Aries batteries are designed for class 3-6 trucks and deliver a 150-mile range on a single charge without nickel and cobalt. The Gemini battery is being developed to have a range of 600 miles with the view of being incorporated in BMW’s iX electric SUV.
The Canadian materials specialist said the milestones for its pilot and future production at the Candiac facility are aligned with ONE’s battery production growth projections. Nano One intends to repurpose its Candiac plant for the pilot production of LFP cathode active materials, with re-commissioning scheduled for Q3 2023. This move gives Nano One a multi-year head start over competitors in the race to commercialise a clean, green and secure LFP supply chain in North America.
ONE began production of its Aries LFP battery pack earlier this year. The company is also building ONE Circle, its first battery cell factory of 20GW due to begin operation in 2024.
Robust battery supply
The two collaborating companies aim to qualify and validate the LFP cathode active materials from Nano One’s previously announced 200 tonnes per annum pilot, which could lead to a binding offtake agreement from the company’s future commercial production facility.
“We look forward to collaborating with ONE and co-developing a robust and economically resilient LFP battery supply chain that is decoupled and environmentally differentiated from the dominance of the overseas market. It is another important step forward for Nano One in the process to securing offtakes and monetizing our technology,” said Nano One CEO Dan Blondal.
“Establishing a North American supply chain for LFP batteries is one of the pillars on which we founded ONE,” said Mujeeb Ijaz, CEO of ONE. “Nano One’s innovative and localised CAM process is aligned with ONE’s efforts to grow our local material supply chain.”
