In the latest episode of the Investing, Markets & Money podcast, host Stuart Fieldhouse caught up with Dan Blondal, CEO of Nano One Materials, to discuss the Canadian battery technology company’s rapid progress and growing international footprint.
Nano One, which develops patented processes for producing lithium iron phosphate (LFP) cathode materials, has secured fresh funding from Natural Resources Canada (NRCan). The new $5 million grant complements roughly $40 million in prior non-dilutive support from the U.S. Department of Defense and the Government of Quebec, aimed at scaling its LFP demonstration facility in Quebec. Blondal said the funding provides “extended runway” and “multiples on shareholder investment,” since each dollar of company capital attracts two to four dollars in matching support.
More than a financial boost, Blondal emphasized that such government backing is critical to building the midstream of the battery supply chain in North America—a segment currently dominated by China. Nano One’s process innovation aims to help Western nations decouple from Chinese supply chains while maintaining cost competitiveness.
Unlike traditional LFP production in China, which relies on iron sulfate tailings from titanium refining, Nano One’s patented “one-pot process” uses iron oxide and metal powders, eliminating the need for iron sulfate and completely removing wastewater by-products. This environmentally cleaner, more scalable approach addresses two major barriers to establishing LFP production in the West: cost and permitting complexity.
Nano One’s strategic partnerships
Nano One’s partnerships underscore its growing strategic importance. The company’s collaboration with Sumitomo Metal Mining, which holds a 5% equity stake, continues to deepen. Sumitomo views Nano One as the most viable non-Chinese route to LFP cathode production, recognizing the advantages of its clean process. Similarly, Rio Tinto is working with Nano One to qualify lithium feedstocks for use in the one-pot process—part of a strategy to create a modular, franchise-ready plant design that could be replicated globally.
Blondal also discussed Nano One’s participation in the Arkansas Lithium Technology Accelerator (ALTA), where state and federal stakeholders are working to build a domestic lithium value chain. Arkansas’ Smackover brine formation, long known for bromine extraction, is now being developed for lithium production, and Nano One’s midstream technology could be a key link between raw materials and finished cathode materials.
Battery supply chain decoupling
On the policy front, Blondal highlighted how China’s recent restrictions on LFP technology exports and the U.S. Inflation Reduction Act’s “45X” clean-energy tax credits create “wind in our sails.” With $7 billion in annual U.S. tax credits potentially at stake, North American battery producers urgently need localized LFP supply—a gap Nano One is well positioned to fill.
Looking ahead, Blondal said investors can expect more non-dilutive capital, continued patent growth (now at over 50 granted globally), and further licensing and joint-venture deals. Nano One is also preparing for expansion into Europe, where decarbonization goals and supply chain resilience are top priorities.
“The hard work we’ve done on LFP—the long-term vision—is starting to bear fruit,” Blondal said. “We’re seeing tremendous engagement not just from government, but now increasingly from industry.”
Watch: How Nano One is helping decouple batteries from China
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Content
00:00 More funding for Nano One
02:57 Geopolitical background and decoupling from China
07:52 The Sumitomo collaboration
10:14 Joining the Arkansas Lithium Technology Accelerator (ALTA) program
14:00 Why is Arkansas taking the lead?
15:26 The Rio Tinto partnership
17:35 New patents approved
18:31 Impact of China’s export restrictions
22:27 Nano One’s involvement with Europe and the G7
24:39 Future plans
