NEO Battery Establishes Collaboration Agreement with Lotus Energy to Strengthen Recycled Silicon Anode Initiative

TORONTO, July 26, 2024 - (TSXV: NBM) (OTC: NBMFF)

• New Collaboration Agreement with Australia-Based Solar PV Recycler - Lotus Energy Recycling
  • Lotus Energy: Proprietary Recycling Technology Know-How to Produce High-Purity 99.9% Recycled PV Silicon
  • To Reach 3,600 kg Per Annum Scale in 2024 and Expansion to 120,000 kg Per Annum Subsequently Planned in Each of Melbourne, Sydney, and Germany by 2026
• Will Explore Joint Venture Opportunities for North American Footprint in Silicon Recycling
  • Will Apply to Governmental Funding for International Cooperation
• To Enhance Commercial Viability, Material Compatibility, and Supply Chain Resiliency by Extending Commercial Relationships with Silicon Recyclers

NEO Battery Materials Ltd. ("NEO" or the "Company"), a low-cost silicon anode materials developer that enables longer-running, rapid-charging lithium-ion batteries, is pleased to announce the Collaboration Agreement (the "Agreement") with Lotus Energy Recycling ("Lotus") - an Australian-based solar photovoltaic (PV) recycler. The partnership will aid the Company's sustainable route-to-commercialization and supply chain resiliency for input materials.

NEO and Lotus intend to develop a silicon anode product to co-market directly to battery cell, electronics, and automotive manufacturers. Both companies will explore joint venture opportunities to establish a North American footprint in silicon recycling. Governmental funding for international cooperation will be applied for in advanced manufacturing and clean technology based on availability and criteria-match.

This Agreement further bolsters NEO's pillared strategy to build commercial-level relationships and diversify the silicon upstream value chain. NEO Battery aims to enhance the commercial viability and compatibility of recycled silicon as a reliable raw material source for its silicon anode materials.

Lotus Energy possesses a proprietary recycling know-how to recover solar silicon cells from end-life solar PV cells. The scalable process implements a heat and chemical treatment without the use of hazardous solvents and materials, removing the risk of environmental concern and reducing unnecessary manufacturing costs and overhead. Lotus has consistently achieved high-purity levels of 99.9%+ for its recycled PV nano silicon particles.

Headquartered in Melbourne, Australia, Lotus Energy has deployed several magnitudes of megawatt-hour (MWh) solar projects across the country ranging from commercial and industrial to residential applications. Lotus commenced the value-added PV recycling initiative and is expected to complete scale-up to 3,600 kgs per year by the end of this year. Subsequently, the production capacity is expected to increase to 120,000 kgs per year for its Melbourne plant. Lotus Energy intends to construct facilities in Sydney and Germany to supply its high-purity recycled PV nano silicon to various industrial and electronics applications.

Mr. Anthony Vippond, Co-Founder and CEO of Lotus, commented, "We are incredibly excited to be collaborating with NEO Battery Materials. We are aligned in our beliefs of the importance of nano- and micro-silicon applied into batteries, utilising recycled materials to minimize the impact on the environment. The energy storage industry will see massive advancements, and we aim to be part of the team that makes those quantum leaps we seek and all need for renewables to be able to supply base load and peak demand energy."

Mr. Spencer Huh, President and CEO of NEO, commented, "This newly added collaboration aligns perfectly with our strategic vision of sustainability, innovation, and supply chain resiliency. Following our collaboration with INNOX eco-M, this partnership with Lotus will add another layer of depth and intricacy in NEO's research and develop to utilize recycled silicon as the main raw material source. In a study administered by the Korea Photovoltaic Industry Association (KOPIA), approximately 3,000 tons and 30,000 tons of end-life PV cells will be released in 2027 and 2033, respectively. This fact implies that NEO will be able to secure a large proportion of ESG-friendly input precursors to diversify away from metallurgical-grade silicon produced from GHG-emitting carbothermic processes."

About NEO Battery Materials Ltd.
NEO Battery Materials is a Canadian battery materials technology company focused on developing silicon anode materials for lithium-ion batteries in electric vehicles, electronics, and energy storage systems. With a patent-protected, low-cost manufacturing process, NEO Battery enables longer-running and ultra-fast charging batteries compared to existing state-of-the-art technologies. The Company aims to be a globally-leading producer of silicon anode materials for the electric vehicle and energy storage industries. For more information, please visit the Company's website at: https://www.neobatterymaterials.com/.

On Behalf of the Board of Directors
Spencer Sung Bum Huh
Director, President, and CEO

For Investor Relations, PR & More Information:
info@neobatterymaterials.com

This news release includes certain forward-looking statements as well as management's objectives, strategies, beliefs and intentions. All information contained herein that is not clearly historical in nature may constitute forward-looking information. Generally, such forward-looking information can be identified notably, but not limited to, by the use of forward-looking terminology such as "plans", "expects," or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur", "be achieved", and similar words referring to future events and results. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including but not limited to: (i) volatile stock prices; (ii) the general global markets and economic conditions; (iii) the possibility of write-downs and impairments; (iv) the risk associated with the research and development of advanced technologies; (v) the risk associated with the effectiveness and feasibility of technologies that have not yet been tested or proven on commercial scale; (vi) the risks associated with entering into joint ventures, collaboration agreements, joint development agreements, and similar commercial agreements; (vii) fluctuations in input precursor prices; (viii) the risks associated with uninsurable risks arising during the course of research, development and production; (ix) competition faced by the resulting issuer in securing experienced personnel and financing; (x) access to adequate infrastructure to support battery materials research and development activities; (xi) the risks associated with changes in the technology regulatory regime governing the Company; (xii) the risks associated with the various environmental regulations the Company is subject to; (xiii) risks related to regulatory and permitting delays; (xiv) the reliance on key personnel; (xv) liquidity risks; (xvi) the risk of litigation; and (xvii) risk management, as described in more detail in our recent securities filings available at?www.sedarplus.com. Forward-looking information is based on assumptions management believes to be reasonable at the time such statements are made, including but not limited to, continued research and development activities, no material adverse change in precursor prices and development plans to proceed in accordance with plans and such plans to achieve their stated expected outcomes, receipt of required regulatory approvals, and such other assumptions and factors as set out herein. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in the forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such forward-looking information. Such forward-looking information has been provided for the purpose of assisting investors in understanding the Company's business, operations, research and development, and commercialization plans and may not be appropriate for other purposes. Accordingly, readers should not place undue reliance on forward-looking information. We assume no obligation to revise or update these forward-looking statements except as required by applicable law.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.