Nano One Materials Corp (CVE:NNO) (OTCMKTS:NNOMF) received its final payment of nearly C$1.2 million from Sustainable Development Technology Canada for its lithium-ion battery cathode materials projects.
The funds will go towards supporting the Vancouver-based clean technology company’s Demonstration Pilot Plant project and the recently launched Scaling Advanced Battery Materials project.
Nano One told shareholders on Monday that it has satisfied all commitments and reporting requirements on the Demonstration Pilot Plant project, which was completed in March.
The firm also said that Sustainable Development Technology Canada (SDTC), a governmental program, has released the 10% holdback portion of its contribution, totaling around C$208,000.
Nano One was approved in May 2019 for an additional C$5 million from SDTC for its Scaling Advanced Battery Materials project. The company recently entered a funding agreement with SDTC which sees Nano One receive an initial payment of nearly C$974,000.
The new round of support from SDTC extends and leverages the success Nano One achieved during its demonstration pilot project, according to Dan Blondal, Nano One’s CEO.
The first contribution strengthens Nano One’s financial position, the first of five such installments from SDTC over the next three years, Blondal told shareholders on Monday.
“The goals are to expand our laboratory, pilot plant and staffing to support the advancement of next generation lithium ion battery cathode materials, used in electric vehicles and renewable energy storage,” Blondal said in a statement.
The upcoming funding round will support activities on various cathode materials initiatives with consortium partners Volkswagen, Pulead Technology and Saint-Gobain, including detailed supply chain validation, process optimization and plant design for the full-scale production of Lithium Iron Phosphate (LFP).
Nano One aims to demonstrate improved durability and production of high energy density lithium nickel manganese cobalt oxides (NMC).
Proceeds from SDTC funding are non-dilutive, non-repayable and will be awarded in five installments and dispersed at the beginning of four sequential project phases with a 10% holdback awarded upon completion of the project, according to Nano One.
Blondal said the firm is “proud” to be a recipient of SDTC support, telling shareholders: “It validates our unique approach and provides valuable leverage to investors and our strategic partners.”
Nano One has developed patented technology and pilot scale demonstration for the low-cost production of high-performance lithium-ion battery cathode materials used in electric vehicles, energy storage and consumer electronics.
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