NEO Battery Materials (TSXV: NBM) says it will build what would be Canada’s first advanced silicon anode manufacturing facility in Windsor, Ontario, pledging to invest up to C$120 million and create over a hundred jobs in a key automotive hub.
For the facility, NEO has entered a lease agreement with City of Windsor for 8 acres (about 350,000 sq. ft) of land at the Windsor Airport, with an initial term of 49 years. The agreement, according to the anode materials developer, includes tax incentives and favourable lease terms compared to market rates.
The Windsor City Council has also approved, in principle, a grant for NEO to support their establishment and operations, the company said in a press release Friday.
Initially, NEO plans invest C$69 million in its first silicon anode facility, which is expected to cover 78,000 sq. ft of the leased land. Over the next eight years, it expects to increase its investment to C$120 million for an expansion of the Windsor facility and value-added projects.
Once fully expanded, the plant is capable of producing 5,000 tonnes of silicon anodes annually.
“NEO Battery Materials’ decision to invest in our city highlights our ability to attract forward-thinking companies that drive innovation and create opportunities for our community,” stated Drew Dilkens, Mayor of Windsor and board chair of Invest WindsorEssex, the lead economic development agency for the Windsor-Essex region.
“As the automotive and automobility capital of Canada, and one of the most important communities to watch in the province and country, we are excited to welcome NEO to Windsor and look forward to the positive impacts, including job creation, this investment will bring to our region.”
Joe Goncalves, VP of investment attraction at Invest WindsorEssex, said the project is “a testament to our region’s strategic location and prominence as a global leader in next-generation vehicle production and battery manufacturing.”
NEO estimates that its Windsor manufacturing facility, when fully operational, will create over 100 skilled jobs in the region.
NEO chief executive officer Spencer Huh said the agreement with the City of Windsor represents “a transformative milestone” for the company as well as the Canadian and Ontario battery ecosystem. “We are proud to be establishing Canada’s first advanced silicon anode manufacturing facility, enabling us to address the increasing demand for high-performance and cost-effective battery technologies.”
On Friday morning following the announcement, NEO Battery Materials rose to a 52-week high of C$1.10, before retreating to C$1.02 for a 2% intraday gain. The company has a market capitalization of over C$120 million ($84 million).
Source: MINING.COM – Read More
