DOD funds expansion of North America's only LFP plant, boosting energy security for EVs and energy storage.

With a strategic push to strengthen domestic energy security, Nano One Materials Corp. has received a $12.9 million award from the U.S. Department of Defense (DOD) to support the expansion of lithium-iron-phosphate (LFP) cathode production at its Candiac facility in Québec, positioning the company to bolster North America's critical battery materials supply chain.

Based out of Vancouver, British Columbia, Nano One is a clean technology company focusing on cost-effective and low-emission methods for producing lithium-ion battery cathode active materials (CAM).

Central to its advancements is a patented "One-Pot" process that simplifies and enhances cathode manufacturing by reducing the number of production stages through the combination of precursor CAM and final CAM into a single reaction. By eliminating upstream chemical conversion steps and the need for wastewater treatment, this innovation stands out for being both economically beneficial and environmentally sustainable.

Acquired by Nano One in November 2022, the Candiac facility is an 80,000-square-foot production site located near Montréal.

In operation since 2012, it remains the only plant in North America producing cathode material for LFP cathode batteries, which are known for their stability, safety, and long lifespan. Compared to conventional nickel-manganese-cobalt (NMC) lithium-ion batteries, LFP batteries are more cost-effective and environmentally friendly due to the absence of critical minerals like cobalt. LFP batteries, however, tend to have a lower energy density, which translates to a shorter range when used in electric vehicles.

With increasing global efforts toward electrification and the energy transition, LFP has emerged as a key component in creating safer and more sustainable battery technologies that support both transportation and renewable energy storage.

Nano One Materials Corp.

Candiac is North America's only active LFP cathode production plant, playing a key role in building a resilient battery materials supply chain.

Strategically situated within a growing North American battery ecosystem, the 2,400-metric-ton-per-year Candiac facility will be instrumental in piloting and scaling Nano One's patented One-Pot process, enhancing the efficiency and sustainability of LFP production to support energy storage and EV markets with a resilient, environmentally friendly cathode supply chain.

Building on this foundation, Nano One has now received a major boost with funding from DOD that will accelerate the scaling and capacity expansion at Candiac, reinforcing the company's commitment to bolstering North America's LFP supply chain for electric vehicles and energy storage solutions.

"Nano One is committed to resilient battery materials supply chains in North America and commends the U.S. Department of Defense for its support across the lithium-ion battery sector," said Nano One CEO Dan Blondal. "These funds build on our existing assets in Candiac and other sources of capital to accelerate our partnerships, sales pipeline and commercialization plans while enhancing value for our collaborators and shareholders. DoD's due diligence not only confirms emerging market demand for LFP and its importance to a strong industrial base for energy security, but also recognizes Nano One for its deep know-how, its strategic objectives and for the advantages of its One-Pot LFP production process."

The funding will support ongoing projects at Nano One's Burnaby and Candiac facilities, focusing on improving energy security by establishing a robust LFP supply chain across North America. This initiative will play a crucial role in enhancing national energy security, supporting product validation, and establishing potential sales channels, including suppliers to the U.S. government, effective from mid-2024 through 2026.

With China currently accounting for about 95% of the world's LFP production capacity, North America faces an urgent need to build independent and secure supply chains. Expanding Nano One's capabilities at Candiac will help address this gap, providing a continental alternative to meet the growing demand for electric vehicles and energy storage solutions while supporting both the energy transition and national defense objectives.