NEO Battery Materials Secures $4.5M UAV Battery Deal

NEO Battery Materials secured a CAD 4.5 million multi-year purchase order and joint development deal with an Asian AI-powered UAV systems maker to produce P-200 and P-300N silicon-enhanced batteries, each surpassing 350 Wh/kg energy density.

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NEO Battery Materials Ltd., a Canadian developer of silicon-enhanced battery materials, has secured a multi-year CAD 4.5 million purchase order and joint development agreement with an Asian manufacturer of AI-powered flight control systems for unmanned aerial vehicles (UAVs). The agreement calls for NEO to design and produce two advanced battery products tailored to the manufacturer’s drone platforms, with integration planned into systems supplied to industrial and military customers in South Korea and India.

The first product, based on NEO’s P-200 silicon anode series, is engineered for high capacity and power output in short-duration combat drone missions. The second, leveraging the P-300N anode series, targets industrial and surveillance UAV applications, emphasizing extended flight time and increased payload capacity. Both battery solutions aim to exceed energy density benchmarks of 350 Wh/kg—more than a 40 percent improvement over conventional UAV batteries rated at 220–250 Wh/kg—while maintaining robust capacity retention and safety under high discharge rates.

“We are highly pleased to announce this milestone for NEO’s high-performance silicon battery development initiative for defence and industrial drone/UAVs,” commented Mr. Spencer Huh, President & CEO of NEO. “With our team from the globally-largest battery manufacturers and a proven track-record of commercializing complex battery products, we aim to build a secure supply chain outside of China to become a tier-1 battery solution vendor for U.S., European, and Asian drone/UAV manufacturers.”

The joint development initiative is structured in three phases covering design, manufacturing, and system-level integration. Following prototype delivery, the customer will conduct rigorous field trials to validate performance and safety before final commercial deployment. The three-year purchase order will generate revenue as NEO meets development milestones and delivers the commercial products.

These silicon-enhanced batteries are expected to be integrated into drone systems serving commercial, industrial, and defense operations across the Asia-Pacific region, marking a significant step in NEO’s growth in the UAV battery market.

Source: Neo Battery Materials Ltd.

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