Forge Nano and Samsung SDI target North Carolina battery production for defense and industrial markets

Forge Nano, Inc. has formed a strategic partnership with Samsung SDI to support the construction and operation of a 3 gigawatt-hour battery manufacturing facility in Morrisville, North Carolina, giving the U.S. advanced materials company a stronger industrial partner as it prepares for a public listing through Archimedes Tech SPAC Partners II Co. (NASDAQ: ATII). Samsung SDI will help Forge Nano establish high-throughput battery cell production, purchase cells from the Gigafactory under a conditional procurement agreement beginning in 2028 and make Forge Nano an authorized distributor of Samsung SDI cells in the U.S. market. The announcement matters because U.S. battery manufacturing remains a strategic priority for defense, industrial, non-consumer automotive and critical infrastructure customers seeking secure domestic supply chains. ATII recently traded around $10.84, with a market value of approximately $320.8 million, as investors evaluate whether Forge Nano’s planned Nasdaq listing can combine semiconductor equipment, atomic layer deposition technology and domestic battery cell production into a credible advanced manufacturing growth story.

Why could Forge Nano’s Samsung SDI partnership strengthen its U.S. battery manufacturing strategy?

Forge Nano’s Samsung SDI partnership strengthens its U.S. battery manufacturing strategy because it pairs a domestic technology company with a global tier-one battery manufacturer at the exact point where scale becomes difficult. Many battery startups can claim differentiated materials, coatings or cell designs. Far fewer can build reliable high-volume manufacturing, secure customer commitments and meet demanding specifications for defense, industrial and infrastructure buyers.

The partnership directly addresses that scaling problem. Samsung SDI is expected to support construction, operational setup and manufacturing execution at Forge Nano’s Morrisville, North Carolina Gigafactory. That gives Forge Nano access to battery production knowledge that would be difficult to replicate internally. In a sector where manufacturing yield, consistency and supply-chain discipline determine commercial success, Samsung SDI’s support could materially reduce execution risk.

The deal also adds a demand signal. Samsung SDI has signed a conditional procurement contract to purchase cells manufactured at the Gigafactory starting in 2028. That does not eliminate commercial risk, but it gives the plant a clearer path to utilization than a speculative factory built ahead of customer demand. For investors watching the proposed ATII merger, that distinction matters.

Forge Nano is also gaining distribution relevance through the agreement. The company will become an authorized U.S. distributor of Samsung SDI cells, giving it a broader market-facing role before the North Carolina plant reaches full operation. That could help the company develop customer relationships, understand U.S. demand patterns and build a sales channel tied to established battery products.

How does the 3 GWh North Carolina Gigafactory fit into U.S. battery supply-chain policy?

The Morrisville Gigafactory fits directly into the policy and industrial push to localize advanced battery production in the United States. Forge Nano is investing between $300 million and $330 million in the 3 GWh facility, supported by a $100 million grant from the U.S. Department of Energy. That public funding element is important because it shows the project is tied to national priorities around domestic battery capacity, critical infrastructure resilience and advanced manufacturing.

The facility is expected to produce both Samsung SDI cell products and Forge Nano’s own Atomic Armor cell products. That dual-production model could make the factory more strategically useful than a single-product facility. It gives Forge Nano a way to manufacture established Samsung SDI products while also scaling its differentiated technology platform for customers that need higher performance, greater durability or secure U.S. sourcing.

The domestic supply-chain angle is especially relevant for defense and industrial buyers. These customers often require reliable supply, secure sourcing and performance under demanding operating conditions. Battery cells used in defense, aerospace, drones, robotics, grid-edge systems and other mission-critical platforms cannot depend entirely on fragile overseas supply chains.

The 2028 operational target gives investors a clear timeline, but also highlights the scale of work ahead. The project must move through construction, equipment installation, workforce development, qualification, customer validation and production ramp. The Samsung SDI partnership improves credibility, but the plant’s value will depend on execution over the next two years.

Why does Samsung SDI’s role reduce but not eliminate Forge Nano’s execution risk?

Samsung SDI’s role reduces execution risk because battery manufacturing is a production discipline, not only a technology story. Building advanced cells at scale requires process control, quality assurance, equipment selection, supply-chain management, safety systems and yield optimization. Samsung SDI’s involvement gives Forge Nano a more credible route to high-throughput production than building the plant entirely on its own.

The agreement also gives Forge Nano access to manufacturing expertise and supply-chain pricing. That could improve the economics of the Morrisville plant if Samsung SDI’s operating support helps reduce startup inefficiencies and procurement costs. For a company transitioning toward public markets through a SPAC merger, anything that lowers perceived scaling risk can strengthen the investor narrative.

However, the risk is not gone. The procurement agreement is conditional, manufacturing is not expected to begin until 2028 and battery plants can face delays, cost overruns, qualification challenges and customer ramp uncertainty. Investors should be careful not to treat the partnership as equivalent to guaranteed revenue or guaranteed plant utilization.

The strongest interpretation is that Samsung SDI gives Forge Nano a better industrial foundation. The weaker interpretation is that Forge Nano still needs to prove it can convert partnership language into operating performance. The next milestones will matter more than the announcement itself, including construction progress, production readiness, customer qualification and evidence that Atomic Armor can be integrated into future Samsung SDI battery products.

What does the partnership mean for ATII ahead of Forge Nano’s proposed Nasdaq listing?

The partnership matters for ATII because Forge Nano is in the process of going public through a proposed merger with Archimedes Tech SPAC Partners II Co. SPAC investors often look for evidence that a target company has more than projections. A strategic partnership with Samsung SDI, a conditional procurement arrangement and a Department of Energy-supported battery plant give Forge Nano more tangible operating anchors as the transaction moves toward completion.

ATII recently traded around $10.84, close to the typical SPAC trading range where investors are still waiting for deal execution, redemption levels and post-merger operating performance. The Samsung SDI announcement may strengthen the business case behind the merger, but the stock will likely remain tied to SPAC mechanics until shareholders vote and the transaction closes.

The planned public-market story is broad. Forge Nano is not only a battery manufacturer. It describes itself as a U.S.-based semiconductor equipment and advanced materials company using atomic layer deposition technology for AI-era chip manufacturing and defense battery applications. That gives the company exposure to two major industrial themes: advanced semiconductor production and secure domestic battery supply.

The challenge is that public investors will demand evidence across both sides of the business. The company must prove that its semiconductor equipment opportunity and battery manufacturing strategy can scale without overextending capital or execution capacity. The Samsung SDI deal helps the battery side look more credible, but investors will still judge Forge Nano by revenue conversion, margins, plant ramp and public-company discipline.

Why does Atomic Armor matter to the Samsung SDI and Forge Nano battery story?

Atomic Armor matters because it is Forge Nano’s core technology differentiator. The company’s platform is based on atomic layer deposition, a process used to apply nanoscale coatings with precision. In batteries, the goal is to strengthen materials and interfaces at the atomic level, improving performance, durability and reliability without requiring customers to redesign entire battery chemistries.

Samsung SDI’s agreement includes accelerating development efforts to incorporate Forge Nano’s Atomic Armor technology into future battery products. That detail is strategically important because it suggests the partnership is not limited to contract manufacturing or distribution. It also creates a technology collaboration path that could expand Forge Nano’s role inside future battery product development.

For defense and critical infrastructure customers, durability can be as important as raw energy density. Batteries used in harsh environments need to perform under stress, temperature variation, vibration and demanding duty cycles. Coating technology that improves stability and lifespan could be valuable if it proves itself at manufacturing scale.

The business question is whether Atomic Armor becomes a premium technology adopted by larger partners, or remains one of many battery-material enhancement approaches competing for validation. Samsung SDI’s involvement improves the credibility of the technology pathway, but commercial adoption will depend on performance data, cost, manufacturability and customer acceptance.

How could the deal affect competition in U.S. advanced battery manufacturing?

The deal could increase competitive pressure in U.S. advanced battery manufacturing by giving Forge Nano a model that blends startup technology, federal support and tier-one manufacturing expertise. Many U.S. battery initiatives have struggled because they rely too heavily on one of those three elements while lacking the others. Technology without scale is not enough. Government funding without operational discipline is not enough. Manufacturing expertise without differentiated products may not create lasting advantage.

Forge Nano is trying to combine all three. The Department of Energy grant helps support the capital stack. Samsung SDI brings manufacturing and market credibility. Forge Nano contributes atomic layer deposition technology and a domestic production platform. If the model works, it could become a template for how U.S. battery companies partner with global manufacturers while still expanding domestic capacity.

The competitive implications extend beyond electric vehicles. Forge Nano is emphasizing defense, industrial, critical infrastructure and non-consumer automotive applications. That positioning could help the company avoid some of the most crowded and margin-sensitive areas of the battery market. It may also align better with customers that prioritize secure supply and specialized performance over pure commodity pricing.

The market will still be demanding. Battery manufacturing is capital-intensive, and global competitors benefit from large scale, deep supply chains and years of process refinement. Forge Nano’s opportunity is to avoid competing purely on commodity volume by focusing on performance, domestic security and specialized use cases. The Samsung SDI partnership makes that strategy more plausible.

Which risks could shape Forge Nano’s Gigafactory and public-market story?

Forge Nano’s biggest near-term challenge is turning the Morrisville Gigafactory from a strategic announcement into a functioning industrial asset. A 3 GWh battery facility requires construction discipline, equipment installation, workforce readiness, safety qualification and supplier coordination before it can begin meaningful production. Manufacturing is not expected to begin until 2028, which leaves a long execution window where delays or cost pressure could affect investor confidence, even with Samsung SDI’s support.

The proposed public-market route also remains an important variable. Forge Nano has agreed to merge with Archimedes Tech SPAC Partners II, but the transaction still depends on regulatory filings, shareholder approval, redemption levels and closing conditions. Investors looking at ATII will need to assess both the operating story behind Forge Nano and the mechanics of the SPAC deal, because the amount of capital available after closing could shape the company’s ability to fund its manufacturing ambitions.

Customer qualification may be just as important as factory construction. Defense, industrial and critical infrastructure customers often require strict performance, reliability and safety validation before adopting battery cells for mission-critical uses. Producing cells at scale is only one part of the challenge. Forge Nano will also need to show that its products can meet demanding customer standards consistently in commercial production.

Capital intensity adds another layer of risk. The Gigafactory budget of $300 million to $330 million is supported in part by a $100 million U.S. Department of Energy grant, but the project still requires substantial funding, working capital and operating discipline. If construction costs rise, qualification takes longer than expected or commercial demand ramps more slowly, Forge Nano may need additional capital after listing.

What should investors watch next after the Samsung SDI partnership?

Investors should watch construction milestones at the Morrisville Gigafactory, including facility progress, equipment installation, manufacturing hiring and operational readiness updates. The 2028 target gives the market a timeline, but confidence will depend on visible progress. Delays would weaken the story, while steady execution would support the investment case.

The ATII merger process is another key watchpoint. Filing updates, shareholder vote timing, redemption levels and any PIPE or financing developments will shape how much capital Forge Nano has after the transaction. A strong balance sheet after closing would make the Samsung SDI partnership more investable. A weaker capital position could increase execution concerns.

The market should also watch whether Samsung SDI deepens its technology collaboration around Atomic Armor. Procurement and manufacturing support are important, but integration of Forge Nano technology into future Samsung SDI battery products could carry greater long-term upside. That would suggest the relationship is evolving from manufacturing support into product differentiation.

The broader question is whether Forge Nano can become a credible public-market advanced manufacturing company. The Samsung SDI partnership gives it a stronger story across U.S. battery production, defense supply chains and technology-enabled cell manufacturing. The next phase will determine whether that story can move from strategic promise to measurable revenue, production capacity and public-market trust.

Key takeaways on what Forge Nano’s Samsung SDI partnership means for ATII and U.S. battery manufacturing

• Forge Nano has formed a strategic partnership with Samsung SDI to support construction and operation of a 3 GWh battery manufacturing facility in Morrisville, North Carolina.
• Samsung SDI is expected to assist Forge Nano with construction, operational setup and high-throughput battery manufacturing, reducing some of the scaling risk tied to a new U.S. cell plant.
• The facility is expected to produce Samsung SDI battery cells alongside Forge Nano’s own Atomic Armor cell products once manufacturing begins in 2028.
• Samsung SDI has signed a conditional procurement agreement to purchase battery cells produced at the North Carolina Gigafactory beginning in 2028.
• Forge Nano will also become an authorized distributor of Samsung SDI cells in the U.S. market, giving it a near-term commercial channel beyond future Gigafactory output.
• Forge Nano is investing between $300 million and $330 million in the plant, supported by a $100 million U.S. Department of Energy grant.
• The project targets domestic battery demand from defense, industrial, non-consumer automotive and critical infrastructure customers that need secure U.S.-based supply chains.
• The partnership strengthens the investor story around Forge Nano’s proposed Nasdaq listing through Archimedes Tech SPAC Partners II Co., currently trading under ATII.
• ATII recently traded around $10.84, showing that the market is still evaluating the proposed SPAC transaction, future redemption levels and Forge Nano’s ability to execute after listing.
• The main risks include construction delays, SPAC closing uncertainty, capital intensity, customer qualification, manufacturing yield and whether Samsung SDI’s support converts into durable revenue growth.