Nano One Materials Corp (CVE:NNO) (OTCMKTS:NNOMF) said its collaboration with leading lithium iron phosphate (LFP) cathode materials producer Pulead Technology has yielded better than expected results.
Under a deal struck in January this year, the two companies have been collaborating to develop and optimize scaled up production of LFP cathode materials using Nano One's patented technology to make lithium ion batteries, which are currently in great demand.
The pair are also exploring possible licensing and commercialization opportunities.
"Nano One's technology mixes lithium, iron, phosphate, and a carbon coating in a one pot process and the joint development results have exceeded our targets in terms of both cost reduction and performance," Dan Blondal, CEO at Nano One said in a statement.
"Furthermore, Nano One has identified and evaluated a low cost, high purity and high volume source of iron that enables our process to eliminate an intermediate step in the supply chain. This brings about savings that are very much in line with our goals. The joint development work is now proceeding to determine the full scale economics and an optimized path to commercialization."
LFP is widely considered to be the safest, lowest cost and longest lasting of all lithium ion batteries and demand for them is expected to double to more than 200,000 tonnes per year in 2025 for use in electric buses, vehicles, energy storage systems and as an environmental alternative to lead-acid batteries.
Blondal said the firms' work was "well positioned" to change how the world makes battery materials and he believes this could disrupt the LFP supply chain.
"Pulead brings tremendous manufacturing and supply chain expertise to the joint development project, and we are looking forward to advancing our partnership to the next level," he added.
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