Shares Of This Micro Cap Jump on Multi-Year Offtake and Joint Development Deal

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Thursday, October 2, 2025

As the broader markets pause near all-time highs, one micro-cap is heating up after announcing a major offtake and joint development agreement that ignited a sharp rally in its shares.

As mentioned, shares of NEO Battery Materials Ltd. (TSX-Venture: NBM) (OTC: NBMFF) are on the move higher as the company announced that it has signed a multi-year offtake and joint development agreement with a North American lithium-ion battery company that focuses on specialized applications such as drones, unmanned aerial systems (UAS), and defense-related mobile systems. The deal covers the supply of 50 metric tons of NEO’s proprietary silicon anode materials, NBMSiDE® P-200 and P-300N, over an initial four-year period beginning in 2026. Pricing will be set according to a mutually agreed structure that reflects prevailing material and processing costs, with delivery volumes subject to production capacity, qualification milestones, and the customer’s operational needs.

In addition to the supply agreement, both companies will collaborate to integrate and optimize NEO’s silicon materials within lithium-ion and lithium-polymer battery cells. The partnership will focus on improving energy density, charging and discharging rates, safety, and power output through real-world field testing in drones and UAS. Meanwhile, NEO continues to advance its production scale-up, moving toward 20 tons per year and ultimately 240 tons annually, supported by plans to lease a commercial facility for manufacturing customized batteries for drones, robotics, automotive, and other high-performance applications.

“This Offtake and JDA represent another critical milestone in the commercialization of NEO’s silicon battery technology, as we expand into synergistic, revenue-potential verticals of battery design and manufacturing. By partnering with a North American battery company, we are advancing our mission to establish a robust and high-quality North American battery supply chain. For the Western world, our Company aims to become the go-to alternative for high-performance battery materials and components to any end-use application,” expressed Mr. Spencer Huh, President & CEO of NEO.

Shares of NBM are currently trading up 12.5% at $0.72 while U.S. listed shares (NBMFF) pull back slightly (-3.85%) at $0.50 per share in mid-morning trading.

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