Nano One Materials (TSX:NANO) - Taking Advantage of Disruption to Chinese Battery Supply Chain

Jan 10, 2025

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Interview with Dan Blondal, CEO at Nano One Materials Corp.

Our previous interview: https://www.cruxinvestor.com/posts/nano-one-materials-tsxnano-disrupting-global-cathode-production-with-modular-plant-strategy-6413

Recording date: 9th January 2025

Nano One Materials Corp (TSX: NANO) is a Canadian clean technology company that is revolutionizing the production of cathode active materials for lithium-ion batteries. Their patented "one-pot" process offers significant reductions in cost, energy usage, and environmental impact compared to existing production methods. With applications in electric vehicles, energy storage systems, and consumer electronics, Nano One is positioned to play a critical role in the rapidly growing battery market.

China currently dominates the lithium iron phosphate (LFP) battery material market, producing around 99% of global supply. However, recent Chinese export restrictions on LFP processing technology have highlighted the risks of over-reliance on Chinese supply chains. This policy shift has created an urgent need for alternative LFP production methods and supply chains outside of China.
Nano One's technology and licensing strategy is ideally suited to address this need. The company's one-pot process is decoupled from China's supply chains and provides a cleaner, more cost-effective production solution. With 48 global patents and a waste-free process, Nano One's technology is immune to China's trade and technology controls. This positions the company to enable localized LFP production and help battery manufacturers de-risk their supply chains.

The company has already proven the scalability of its technology with a pilot demonstration facility in Quebec - the only one of its kind outside Asia. Nano One has garnered support from the governments of Canada, the U.S., British Columbia, and Quebec, along with strategic investments and collaborations with major players such as Rio Tinto, Sumitomo Metal Mining, and engineering firm Worley.

As CEO Dan Blondal explains, "We were already doing everything to decouple from China anyways. But what [China's policy] does do is it changes really the appetite, the impetus and the speed at which our potential customers want to move." The current geopolitical tensions are expected to accelerate the adoption of Nano One's technology, as battery and car makers seek secure, domestic supply chains for critical battery materials.

Nano One's value proposition is not only geopolitically relevant but also economically compelling. The company's one-pot process provides an estimated 30% reduction in capital and operating costs and uses 80% less energy than traditional methods. While near-term margins may be higher due to supply chain disruptions, the long-term competitiveness of Nano One's technology lies in its ability to enable high-volume, low-cost LFP production.

Investors have a timely opportunity to gain exposure to the burgeoning LFP battery market through Nano One Materials. The company's innovative technology, strategic partnerships, and strong government support position it as a key player in the global transition towards localized, sustainable battery production. As the world seeks to reduce its dependence on Chinese supply chains, Nano One is poised to play a pivotal role in shaping the future of the lithium-ion battery industry.

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View Nano One Materials' company profile: https://www.cruxinvestor.com/companies/nano-one-materials