NEO Battery Materials Ltd. announce that the Company has signed a Strategic Memorandum of Understanding with Automobile & PCB Inc. on June 7th. The MOU establishes strategic investment and cooperation between NEO and A&P to advance the Korean mass production facility of NEO's silicon anode materials for electric vehicle (EV) lithium-ion batteries. A&P is a public company listed on the KOSPI, the main board of the Korea Exchange.

In 2021, A&P has recorded annual revenues of CAD $70M with its automotive parts business, and its related company, Yongsan, generated automotive parts manufacturing revenues of CAD $600M in 2021. Yongsan possesses 17 production sites across 5 countries including South Korea, China, the U.S., Mexico, and India, and it employs ~3,300 workers across the company's global network. Through this strategic MOU, NEO and A&P will pursue cooperation to construct NEO's Silicon Anode Commercial Plant in South Korea by attracting strategic investments to NBM Korea Co.

Ltd., a wholly owned subsidiary of NEO. A&P will actively support NEO in its commercialization efforts, and both parties have established a top priority of pursuing strategic investments into NBM Korea. Both parties have also agreed to take advantage of the reputable and recognized network of A&P's related companies, YSP and Yongsan, to strengthen NEO's global business network.

Through its dominance in product quality and management, Yongsan is a reputable vendor to Hyundai, Kia Motors, Suzuki, Geely Auto, and BYD Auto.