NEO Battery Materials Ltd. and its South Korean subsidiary, NBM Korea Co., Ltd., have signed a definitive lease agreement with ENPLUS Co., Ltd. to occupy an operational battery electrode manufacturing facility in the Gimje Free Trade Zone. The agreement, finalized on November 10, 2025, secures access to a fully equipped production line capable of megawatt-hour (MWh)–scale lithium-ion battery electrode manufacturing.
The lease spans an initial three-year term, during which NEO Battery Materials will utilize the facility’s production equipment, office space, warehouse, and auxiliary infrastructure. The company has also obtained a right of first refusal to renew the lease under identical terms. Financial terms include a cash security deposit and monthly lease payments. No equity, warrants, or other securities have been issued in connection with the lease.
This arrangement enables NEO Battery Materials to bypass the capital-intensive process and time delay associated with constructing a new plant. The existing facility will support immediate manufacturing of advanced electrodes, allowing the company to scale capacity rapidly through extended operational shifts and automation enhancements. Management anticipates that these measures could double production capacity within the coming months.
Initially, the site will serve established automotive original equipment manufacturers (OEMs) and other downstream partners. As operations ramp up, NEO Battery Materials plans to adapt its silicon-enhanced electrode technology for a broader client base, including companies in the drone, robotics, and electronics sectors. These custom formulations leverage NEO’s proprietary low-cost manufacturing process to deliver longer cycle life and faster charging performance in lithium-ion batteries.
Mr. Spencer Huh, President & CEO of NEO, commented, “Our entry into this operating electrode manufacturing facility marks an inflection point for the Company, meaningfully advancing our transition into a production-ready battery company. This lease arrangement has allowed us to avoid the capital intensity associated with new plant builds, remove multiple quarters of construction and commissioning risk, and immediately manufacture high-quality battery products using NEO’s proprietary technology and know-how”.
Source: Neo Battery Materials
