Burnaby’s Nano One Materials has secured a $17.8 million investment from the U.S. Department of Defense (DoD) under the Title III program of the Defense Production Act Investments (DPAI) office. The funding aims to bolster North America’s battery supply chain and energy security, addressing growing market demand for lithium iron phosphate (LFP) technology.
Nano One specializes in lithium-ion battery cathode materials.
The project, running from July 1, 2024, through 2026, will focus on expanding production capacity at Nano One’s facility in Candiac, Québec, the only LFP production site in North America. The award will support ongoing work at both the Candiac and Burnaby, British Columbia locations. It also strengthens the U.S. and Canadian industrial base to meet defense sector energy needs, including product validation and potential sales to U.S. government suppliers.
Nano One’s CEO and Founder, Dan Blondal, praised the DoD’s commitment to strengthening the lithium-ion battery sector, stating that the funding will help accelerate partnerships, sales, and commercialization while adding value for shareholders and collaborators. He emphasized the importance of Nano One’s One-Pot LFP production process, which reduces costs, energy usage, and environmental impact by eliminating wastewater treatment and chemical conversion steps.
The global shift towards LFP technology is driven by its cost-efficiency, safety, and lower environmental footprint compared to other battery materials like lithium nickel manganese cobalt. While China currently dominates 95% of LFP production, North America is ramping up efforts to establish independent supply chains, with companies like Nano One leading the way.
The Canadian government has also recognized the strategic importance of LFP materials by adding lithium, phosphorus, and high-purity iron to its Critical Minerals list.