NEO Battery Materials (NBM.V) is a company focused on electric vehicle lithium-ion battery metals. NEO has a focus on producing silicon anode materials through its proprietary single-step nano coating process, which provides improvements in capacity and efficiency over lithium-ion batteries using graphite in their anode materials.
NEO Battery Materials has the goal to become a silicon anode active materials supplier to the electric vehicle industry.
Today, the company announced it has signed a Memorandum of Understanding (MOU) with an Asia-based producer of high-purity silicon powder through recycling silicon by-product waste from solar photovoltaic cell and semiconductor manufacturing. Due to the sensitive nature of the information, and strategic reasons, the recycler will remain confidential until officially disclosed.
Under the MOU terms, the purpose will be to significantly enhance the price competitiveness of silicon anode materials for electric vehicle lithium-ion batteries by integrating the Recycler’s cost-reduced, recycled silicon input into NEO’s proprietary silicon anode materials, NBMSiDE™.
The Recycler’s silicon waste recycling technology may enable NEO Battery Materials to realize a substantial price reduction in the silicon input by 30% and up to 40%.
In early January 2023, NEO Battery Metals expects to receive recycled high-purity silicon and conduct sample testing to assess for performance, viability, and collaboration/research direction.
Further silicon input price reductions will drastically enhance NBMSiDE™ price competitiveness compared to existing high-priced competitors, and the Company may also uniquely secure a long-term supply and stable price of silicon input through recycled silicon by-product waste from solar energy & semiconductor industries.
NEO is also in discussions with the recycler regarding collaborative opportunities to enter the North American market. NEO has the potential to provide cost- and environment-friendly silicon anodes through vertically-integrating silicon anode production with the Recycler’s silicon waste recycling. More collaboration and joint development activities with lithium-ion battery supply chain players are expected in the upcoming year.
At time of writing, the stock is up over 11% on the news.
The stock is at an interesting point. We confirmed a basing and a reversal breakout with the stock closing above $0.165 a few weeks ago. As long as the stock remains above this zone, the uptrend remains intact.
Going forward, the stock will have to take out the major resistance zone at the $0.25 zone. We tested this just a few days ago and saw profit taking. These recent highs will need to be taken out. Perhaps the catalyst will be the press releases expected in January.