April 8, 2024

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Gunsan

South Korea

• Construction has officially begun on Nexeon's first commercial-scale silicon anode material plant.
• Nexeon is on track to deliver silicon anode material starting in 2025, fulfilling the previously announced binding supply agreement with Panasonic.
• The strategically located site in Gunsan, South Korea, sits adjacent to OCI's facilities, enabling a "fenceline" supply of silane, a critical raw material.
• This co-located site with OCI enables capital efficient scaling for both companies, ensuring delivery of low-cost, superior silicon anode materials.
• By 2030, the new facility will have the capacity to produce significant volumes of material annually, allowing Nexeon to supply its pipeline of customers globally.

Gunsan, South Korea – April 2^nd, 2024 – Nexeon, a leader in next-generation silicon anode materials for lithium-ion batteries, today announced a major step forward with the groundbreaking of its first commercial production facility. This milestone positions Nexeon to deliver on its commitment to supply high-performance, cost-effective silicon anode material at commercial volumes starting in 2025.

Delivering on the Promise of Silicon Anode Technology

Nexeon's silicon anode materials significantly increase the energy density of lithium-ion batteries, a key factor in extending the range, and improve charging performance of electric vehicles. The company's second-generation "drop-in" technology allows battery manufacturers to easily integrate higher silicon content into their existing production processes without requiring additional capital expenditure.

"Breaking ground on our first commercial production facility is the culmination of many years of dedication and technical accomplishments by the Nexeon team. It marks a key moment in our growth and reflects the commercial interest customers have shown in our technology," said Scott Brown, CEO of Nexeon. "By beginning construction on our first commercial production site, we are on track to deliver the game-changing benefits of silicon anode materials to the global battery market."

A Strategic Partnership for Future Growth

The exclusive partnership with OCI, one of the world's largest manufacturers of silane outside of China, provides a secure and cost-effective supply of a key material for Nexeon.  The dedicated pipeline for silane delivery streamlines production and minimizes transportation costs – while aligning with Nexeon’s sustainability mission.  Additionally, OCI has the capability to scale production alongside Nexeon, ensuring a reliable supply of raw materials far into the future to meet growing market demands.

"We are thrilled to partner with Nexeon in this endeavour," said Yoo-Shin Kim, President (CEO) of OCI. "This collaboration leverages the strengths of both companies, combining OCI's expertise in advanced materials with Nexeon's leading silicon anode technology. Together, we will deliver high-quality, cost-competitive solutions that accelerate the future of battery technology.".  OCI will produce silane by utilizing by-products from an existing manufacturing process used for semiconductor materials, further compounding cost-competitiveness.

Nexeon's groundbreaking ceremony signifies a significant leap forward in the commercialization of silicon anode materials. With a secure supply chain and a state-of-the-art production facility on the horizon, Nexeon is poised to revolutionize the lithium-ion battery landscape and unlock a new era of energy performance.

Attending the groundbreaking ceremony were: Nexeon CEO Scott Brown, Jeonbuk State Vice-Governor Jonghun Kim, Gunsan Mayor Imjune Kang, National Assembly Member Youngdae Shin, Jeonbuk State Council Taechang Kang and Dongku Kim, OCI CEO Yooshin Kim, and SC Engineering EVP Dae-sik Wang. This ceremony is the first step to implementing an eco-friendly project to produce lithium ion battery materials, marking Gunsan City as a hub for innovation.

In addition, management of SKC, SJL Partners, BNW and Shinhan Securities (investors in Nexeon) joined the groundbreaking ceremony, adding their support for the event.

About Nexeon Ltd.:

Nexeon is the leading international developer and manufacturer of advanced silicon anode materials for lithium-ion batteries. These are fundamental to achieving a sustainable future.

Nexeon’s battery materials enable a significantly higher cell energy density, allowing for the design of smaller and more cost-effective batteries. This leads to enhanced performance for a several applications, including electric vehicles, where range and charging times can be dramatically improved, addressing key consumer barriers to entry.

Nexeon is headquartered in Oxfordshire, with operations in Japan and South Korea. It has a strong multi-disciplinary team with expertise in sciences, engineering and manufacturing. For more details, visit https://www.nexeonglobal.com.