Stock price up 275% over the past year, Nano One progresses commercialization efforts with JV partners in the lithium ion battery industry
Battery cathode materials nanotech company, Nano One Materials Corp. (TSX: NANO) (“Nano One”) continues to make solid progress with regards to commercialization of their patented licenses via several joint development agreements. The Company has also recently been upgraded to the TSX exchange, trading under the new ticker “NANO”.
Nano One is working with some of the biggest names in the battery and EV industry
Source: Nano One investor presentation
Nano One’s recent development agreements update
Announced on April 20, 2021, Nano One reported that they had successfully advanced phases one and two of their joint development agreement (JDA) with their multi-billion-dollar Asian (outside China) cathode producer development partner. The announcement stated: “LNMO cathode materials have met performance metrics and initial economic targets. Next steps include scale up, detailed economic modeling, third-party evaluation and planning for commercialization……The JDA provides a framework to develop a business plan for the commercialization of cathode materials, through a joint venture, licensing of Nano One’s technology and or through further development work.”
The key takeaway here for investors is that Nano One has developed advance intellectual property that will help cathode makers make next-generation batteries, needed to support the next generation of electric vehicles that require lower cost, faster charging, and still with good energy density and power. Nano One’s high-performance lithium-nickel-manganese-oxide (LNMO) cathode materials (using Nano One’s patented one-pot process) is also known as high voltage spinel (HVS). It delivers energy and power on par with other high-performance cathodes and is more cost effective because it is cobalt free, low in nickel and does not require excess lithium. LNMO’s three-dimensional spinel structure enables lithium ions to flow more quickly than other types of cathode for fast charging and discharge and keeps it from expanding, contracting and straining the battery.
Announced on June 3, 2021, Nano One and Johnson Matthey entered into a joint development agreement for lithium-ion battery materials. The co-development agreement is for next generation products and processes for Johnson Matthey’s eLNO® family of nickel-rich advanced cathode materials using Nano One’s patented one-pot process. The agreement also includes a detailed commercialization study for pre-pilot, pilot and scaled up production.
Announced on May 6, 2021, Nano One and niobium producer CBMM entered into a co-development agreement. The project will build on CBMM’s niobium products and technologies, and on Nano One’s successful demonstration and patenting of niobium coated cathode materials. Niobium coatings protect the cathode which leads to long-term cycling stability and improved battery durability.
Nano One is targeting to make US$1B from the forecast US$23 billion cathode market by 2025
Source: Nano One investor presentation
Car makers and customers are demanding electric cars at lower prices with longer lasting and better batteries. To achieve this car makers, cathode and anode manufacturers, are spending up big on R&D and innovation. For most companies, it is easier and faster to pay a royalty to benefit from this better technology than spend billions of dollars trying to develop it themselves. The battery cathode market alone is forecast to be worth an incredible US$23 billion by 2025, so there is plenty of incentive to have the best technology. Nano One’s goal is to target just US$1 billion of the sector.
Nano One has done the work and is now rapidly co-developing better cathode materials to support cathode and battery manufacturers, and ultimately the EV and energy storage industries. This should potentially lead to successful commercialization and the beginning of strong revenues for Nano One.
Nano One is recently cashed up after a successful equity capital raise of C$28.9 million and trades on a market cap of C$436 million after a nice 275% stock price rise over the past year. There should be good times ahead for Nano One.
Matthew Bohlsen is a Senior Editor for InvestorIntel.com. With a Graduate Diploma in Applied Finance and Investment, and a Graduate Diploma in Financial Planning. He ... <Read more about Matthew Bohlsen>