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Battery materials technology developer Nano One announces strategic investment from Sumitomo, shares up

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(Kitco News) - Shares of battery cathode material technology developer Nano One Materials (TSX: NANO) are trading higher today after the company announced a strategic investment from Sumitomo Metal Mining (SMM).

According to the company’s statement, the amount to be invested is C$16.9 million and Nano One will issue a total of 5,498,355 common shares, representing approximately 5% of the current issued and outstanding shares of Nano One on the closing of the investment.

Importantly, the companies agreed to undertake joint development of manufacturing technology for battery cathode materials for electric vehicles (EVs), among other collaborative work.

In its press release, Sumitomo said this is the first time that a producer of cathode active material (CAM) has invested in Nano One, adding that CAM is one of the four main materials for batteries and is “the most expensive and significant component.”

“Nano One possesses unique CAM production technology, called the One-Pot Process. This technology reduces process complexity, resulting in fewer process steps and lower CAPEX and OPEX compared to current technology. Nano One’s One Pot technology will enable CAM production at a lower cost and environmental impacts than current technology,” Sumitomo said.

The company noted that the aim of this joint development work will be to achieve a low-cost, low environmental impact production process for lithium iron phosphate (LFP) CAM and nickel-rich CAM chemistries, such as lithium nickel manganese cobalt oxide (NMC) by integrating Nano One technology into SMM’s production process.

SMM said it will also seek other collaborations with Nano One in the field of CAM production, including collaborations such as the establishment of a joint venture and licensing agreements.

Nano One Materials is a clean technology company with a patented, scalable and low carbon intensity industrial process for the low-cost production of high-performance lithium-ion battery cathode materials.

Japan’s SMM (TSE: 5713) produces and sells CAM for vehicle batteries. In accordance with market demand, the company aims to increase monthly CAM production capacity from the current approximately 5,000 tonnes to 7,000 tonnes in FY2025, 10,000 tonnes in FY2027 and 15,000 tonnes in FY2030.

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