Shares of NEO Battery Materials (TSXV: NBM) surged on Monday after the company announced a partnership with a Fortune Global 500, multinational chemical materials company for the development of silicon-based anode materials.
The identity of the partner will remain confidential due to competitive strategy and protection of proprietary technologies, NEO said, only revealing that it has multi-billion annual revenue with over 40,000 employees in over 50 countries.
Under a joint development agreement signed Monday, the companies will work together to develop silicon anode products with advanced chemical coatings designed to improve their structural durability and limit undesirable reactions that can decrease battery capacity during use.
Based on the successful completion of development objectives, both parties intend to commercialize the jointly enhanced silicon anodes for EV lithium-ion batteries, NEO said. The company currently has a patent-protected, low-cost manufacturing process for silicon anodes that enables longer-running and ultra-fasting charging batteries.
Commenting on the JDA, the first signed by the company, NEO chief executive Spencer Huh said the synergies with the partner “are expected to generate unmatched battery performance compared to state-of-the-art products.”
NEO Battery Materials’ stock soared over 30% to a 52-week high of C$0.44 on the JDA announcement, giving the company a market capitalization nearly C$47 million. By 1:40 p.m. ET, it has pulled back slightly to C$0.40 apiece.
