NEO Battery Materials, a low-cost silicon anode materials developer that enables longer-running, rapid-charging lithium-ion batteries, has entered into a lease agreement with the City of Windsor, Ontario, securing 8 acres of surplus lands at Windsor Airport.
Hinted at last year, this significant milestone marks a critical step toward establishing Canada’s first advanced silicon anode manufacturing facility, further solidifying NEO’s role in strengthening the Canadian battery value chain.
Located in one of Canada’s key automotive and battery hubs, NEO will lease 8 acres or 350,000 square feet to construct a commercial plant capable of producing 5,000 tons of silicon anodes annually. Initially planning to invest $69 million, NEO expects to invest approximately $120 million in total over the next 8 years for future expansion of the Windsor facility and value-added projects.
The investment is expected to create over 100 skilled jobs when fully operational. NEO’s facility is expected to play a pivotal role in reducing reliance on imported materials and enhancing the resilience of the burgeoning battery supply chain in Ontario and across North America.
With an initial term of 49 years, the agreement includes tax incentives and favourable lease terms compared to market rates, reflecting Windsor’s commitment to fostering economic growth and innovation in battery technology.
Through a Community Improvement Plan, Windsor City Council has approved, in principle, a grant for NEO Battery Materials to support their establishment and operations. NEO’s decision to establish its first North American manufacturing facility in Windsor underscores the Company’s confidence in the region’s infrastructure, workforce, and business-friendly environment.
“The execution of the Agreement represents a transformative milestone for NEO Battery Materials and the Canadian and Ontario battery ecosystem,” stated Mr. Spencer Huh, Director, President and CEO of NEO.
“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. With a significant investment in the Windsor community, NEO will further bolster Ontario’s clean tech sector and strengthen Canada’s growing leadership in the battery supply chain.”