NEO Battery Materials Ltd. announced that the construction permit for the company's Silicon Anode Commercial Plant has been approved by the City of Pyeongtaek. With an initial capacity of 240 tons per year, the Commercial Plant will be capable of supplying silicon anodes to up to 160,000 electric vehicles, and NEO plans to target the full-fledged capacity at a minimum production of 2,000 tons per year. The construction permit has been approved after a rigorous examination and due diligence period with the relevant departments of Pyeongtaek City and external organizations.

As discussed, the Company will proceed to the invitation for bid (IFB) to select the ideal contractor for construction, and the initial construction phase will include site clearance and basic civil engineering to prepare for the build-out of the Commercial Plant. Strategic Investments & Non-Dilutive Funding from Green/Clean Technology Policies for Commercial Plant Construction & Equipment NEO Battery Materials is actively engaged to secure reliable, long-term investors, which include institutional investors and corporations, that will provide strategic investments for construction and equipment. Management deems strategic investors that possess the necessary resources, competencies, and network can support NEO's business initiatives to expand in the global EV lithium-ion battery sector.

In concurrence with commercialization progress, the Company prioritizes minimizing equity dilution and achieving the optimal capital structure level.