Nano One Materials secures C$18m to boost lithium iron phosphate production at Candiac facility

Nano One Materials Corp. has announced an exciting development for its lithium iron phosphate (LFP) production as it secured C$18 million in funding from the Government of Quebec. This substantial financial backing includes a C$15 million loan from Quebec’s Ministry of the Economy, Innovation and Energy and a C$3 million grant from the Ministry of the Environment, the Fight Against Climate Change, Wildlife and Parks. This strategic funding will significantly support Nano One’s efforts to advance the piloting and commercialization of its groundbreaking One-Pot™ process at its Candiac, Quebec facility.

This funding marks a pivotal moment for Nano One, a clean technology company focused on revolutionizing the production of cathode materials used in lithium-ion batteries. Despite a difficult year for the company, with shares down more than 58%, the announcement of this funding led to a 16% increase in its stock price, reaching C$1.01 on Monday. However, this surge does not negate the broader challenges facing Nano One as it continues to navigate a volatile market.

Nano One’s One-Pot™ process, a patented manufacturing technology, aims to reduce both the cost and environmental impact of producing LFP cathode materials. By eliminating multiple precursor steps, the One-Pot™ process integrates the iron and phosphate precursor steps with the lithium addition step, streamlining production while reducing energy intensity and greenhouse gas emissions. This innovative process could reshape the future of battery manufacturing by making production more cost-effective, environmentally friendly, and less reliant on problematic supply chains.

The C$15 million loan, provided through Investissement Québec, will directly support approximately C$63.4 million in eligible expenditures at Nano One’s Candiac facility between January 2023 and December 2026. This funding will help facilitate capacity expansion and the ongoing commercialization of Nano One’s technology, which is already demonstrating scalability. The government’s support complements a recent US$12.9 million grant awarded by the U.S. Department of Defense, underscoring Nano One’s growing recognition as a leader in North America’s emerging lithium-ion battery supply chain.

In a statement, Dan Blondal, CEO of Nano One, expressed his gratitude for the Quebec government’s support, highlighting the importance of the Candiac facility. He emphasized that the plant is positioned to lead the way in North American LFP production, playing a critical role in the region’s transition to electric vehicles (EVs) and energy storage systems. The Candiac facility is unique in that it houses the only LFP production plant outside of Asia, and Nano One has integrated the facility’s skilled team to strengthen its capabilities.

The Quebec government has long been committed to supporting green technologies, and its recent funding allocation to Nano One further reinforces its leadership in the battery industry. Christine Fréchette, Quebec’s Minister of the Economy, Innovation and Energy, praised the initiative, stressing that it would help position the province as a global leader in the energy transition and battery manufacturing. The support from the Ministry of the Environment, Climate Change, Wildlife and Parks, led by Benoit Charette, also underscores the government’s commitment to achieving its climate objectives by backing clean technologies that promote sustainability.

This funding will not only support Nano One’s research and development efforts but will also help create and secure over 40 skilled jobs at the Candiac plant. As the demand for electric vehicles and energy storage systems grows, Nano One is strategically positioned to expand its production capabilities, positioning Quebec as a key hub for clean technology and battery innovation.

In conclusion, the Government of Quebec’s financial commitment to Nano One Materials Corp. is a significant step toward advancing the production of LFP cathode materials in North America. The funding strengthens Nano One’s position as a leader in the clean technology space and supports Quebec’s ambitions to become a key player in the global battery market. With additional support from the U.S. Department of Defense and its industry partners, Nano One is well on its way to scaling its innovative manufacturing processes and contributing to a more sustainable energy future.