[August 26, 2026]

Nano One Advances Global LFP Cathode Strategy as Demand from Energy Storage, EV and Defence Applications Accelerates

Nano One^® Materials Corp. ("Nano One" or the "Company") (TSX: NANO) (OTCQB: NNOMF) (Frankfurt: LBMB), a process technology company specializing in cathode active materials (CAM) for lithium-ion batteries, reaffirms its strategy for meeting global demand for lithium iron phosphate (LFP) cathode active material. The Company will seek to license its One-Pot™ process technology into regional markets through localized development companies that will be leveraged to establish regional partnerships. While the Company's focus remains on its core market segments outlined below, it is also monitoring other emerging technologies, such as sodium-ion chemistries, with a view to potentially leveraging its supply chain experience in feedstock pre-qualification and circularity, including recycling.

"We no longer find ourselves alone in making the case for LFP cathode production outside of China-G7 leaders, U.S. defence procurement rules and the International Energy Agency have all echoed it this year. Our job now is to convert that momentum-advancing Candiac and establishing DevCos that bring partners and project development funding together with our technology, building recurring licensing and services revenue. I expect these efforts to enhance shareholder value and support long-term growth," said Alex Holmes, Chief Executive Officer of Nano One.

Global Demand Is Localizing
LFP chemistries accounted for approximately 60% of global lithium-ion battery cell demand in 2025-roughly 1.0 TWh-and annual demand outside China is forecast to reach 2.1 TWh by 2035, equivalent to approximately 168 new LFP cathode plants with a capacity of 25,000 tonnes per annum each¹. LFP is the dominant chemistry in energy storage applications, accounting for more than 90% of installations², with North American growth led by grid and AI data-centre storage and European demand led by battery-electric vehicles (BEVs). BEV registrations across 17 European markets grew 33.7% in the first half of 2026³. The addressable LFP market outside China is estimated at approximately $8-10 billion annually in 2026, with the market forecast to grow to approximately $40 billion annually by 2035⁴.

Governments are converting some of that demand into localization requirements. In the United States, the National Defense Authorization Act (NDAA) has placed restrictions on batteries from prohibited foreign entities starting in 2028, with the 45X manufacturing credit maintained at US$35/kWh. The European Union and G7 are committed to diversified regional battery supply chains, while the IEA has warned that Chinese export controls announced in October 2025 put downstream cell production capacity outside China at risk. Nano One's One-Pot process is designed for this environment-it makes cathode materials directly from non-sulfate metals or oxides feedstock, bypassing the need to rely on China-dominated precursor cathode active materials. The technology also alleviates the need to manage certain byproduct waste streams that can prove difficult in some regions, creating an easier pathway to permitting.

Addressing Cathode Markets Through DevCos
For each target market, Nano One plans to establish or participate in development company vehicles ("DevCos")-joint-venture-style entities created to advance development, finance, build and potentially operate LFP cathode plants. These DevCos will allow Nano One to pair its technology with regional partners, customers and capital. Rather than being a sole shareholder of a project, Nano One seeks to de-risk the development and the funding of such projects by contributing technology, engineering and services while future consortium partners contribute construction capital and offtake. Going forward, each plant can be financed on its own merits-a standard practice in industrial technology licensing that can allow for a more capital-light development model for the Company, as well as providing the capacity to pursue multiple growth projects in different regions.

Under its Design One Build Many strategy, the Company intends to license its One-Pot process technology through flexible adoption paths-from a direct technology license to a fully integrated package-matched to each customer's needs. Nano One aims to earn licensing fees and royalties, complemented by support services across the plant lifecycle, from pre-FID development through construction and commissioning, ramp-up and ongoing operations and maintenance (O&M). The business model is intended to be prudent and repeatable: de-risk each plant, keep the Company's balance sheet capital-light and grow recurring high-margin revenue as plants multiply.

Execution
On July 23, 2026, the Company announced that detailed engineering on the Candiac capacity expansion was 85% complete, with commissioning of the expanded ~800 tpa production line currently targeted for the first half of 2027. The existing ~200 tpa Pilot Line is already supporting customer sampling and product qualification. Small-volume commercial supply discussions are ongoing with defence and energy storage customers, with initial commercial agreements targeted for the end of 2026.

Nano One expects to provide further updates on progress against this strategy in the coming months, including a dedicated update on its supply chain qualification initiatives and the establishment of its DevCo vehicles.

About Nano One^®
Nano One^® Materials Corp. (Nano One) is a process technology company changing how cathode active materials (CAMs) are produced for lithium-ion batteries. Nano One's platform is built on a portfolio of patented processes, decades of manufacturing know-how and modular plant designs that enable scalable, cost-competitive and easier-to-permit CAM production with resilient supply chains. The technology eliminates wastewater and by-products while enabling regionally sourced raw materials and reducing exposure to foreign supply chain volatility. Modular plants are designed with fewer steps to reduce capex, energy and environmental intensity and to accelerate deployment, manufacturing and licensing. Product development and process optimization are based at Nano One's Innovation Centre in Burnaby, British Columbia while piloting, demonstration and commercial production are based in Candiac, Québec, supported by a team with more than 15 years of commercial cathode manufacturing experience supplying global cell manufacturers. Strategic collaborations with global partners including Sumitomo Metal Mining, Rio Tinto and Worley support Nano One's Design-One-Build-Many growth strategy. Nano One has received funding support from the Governments of Canada, the United States, Québec and British Columbia.

For more information, please visit nanoOne.ca.

Cautionary Notes and Forward-Looking Statements

Certain information contained herein may constitute "forward-looking information" and "forward-looking statements" within the meaning of applicable securities legislation. All statements, other than statements of historical fact, are forward-looking statements. Generally, forward-looking information can be identified by the use of terminology such as 'believe', 'expect', 'anticipate', 'plan', 'intend', 'continue', 'estimate', 'may', 'will', 'should', 'ongoing', 'target', 'goal', 'potential' or variations of such words and phrases or statements that certain actions, events or results "will" occur.

Forward-looking information in this news release includes, but is not limited to: the Company's strategy for meeting global LFP demand through licensing its One-Pot™ process technology into regional markets and establishing or participating in Development Company ("DevCo") vehicles; the anticipated structure, benefits and capital-light nature of the DevCo model, including the ability to pair Nano One's technology with regional partners, customers and capital, and to pursue multiple growth projects in different regions; anticipated global and regional demand and growth projections for LFP cathode active material and battery cells, including forecasted demand outside China, the number of equivalent LFP cathode plants required, and the size and growth of the addressable LFP market; the anticipated impact of government policy, including the NDAA, the 45X manufacturing credit, EU and G7 supply chain diversification commitments, and Chinese export controls, on demand for localized LFP production; the anticipated benefits of the One-Pot™ process, including its ability to bypass China-dominated precursor CAM supply chains, reduce byproduct waste management and provide an easier pathway to permitting; the Company's Design One Build Many strategy, including the licensing of a standardized plant design developed with Worley Chemetics, and the anticipated licensing fees, royalties and lifecycle support services revenue; the timing and completion of the Candiac capacity expansion, including commissioning of the expanded ~800 tpa production line targeted for the first half of 2027; the ability of the existing Pilot Line to support ongoing customer sampling and product qualification; the timing of small-volume commercial supply discussions and initial commercial agreements with defence and energy storage customers, targeted for the end of 2026; the Company's monitoring of and potential to leverage its supply chain experience with respect to emerging technologies such as sodium-ion chemistries; the anticipated benefits of Nano One's strategy to enhance shareholder value and support long-term growth; and the Company's plans to provide further updates on its supply chain qualification initiatives and DevCo establishment.

Forward-looking statements are based on the current opinions and estimates of management as of the date such statements are made and are not, and cannot be, a guarantee of future results or events. They are subject to known and unknown risks, uncertainties and other factors that may cause actual results to differ materially, including but not limited to: general and global economic, geopolitical and regulatory changes; trade and export controls affecting LFP cathode materials and production equipment; changes to government policy or funding programs, including the NDAA, 45X credit and other incentive programs in Canada, the U.S. and Europe; the timely execution of the Company's business plans, including the Candiac capacity expansion and commissioning timeline; the Company's ability to establish DevCo vehicles and to attract partners, customers and capital on acceptable terms; the development of technology, supply chains and cathode production facilities; successful collaborations with Worley, OEMs, miners, governments or others; the Company's ability to achieve its stated goals and commercialize its technology and patents via license, joint venture, DevCo or independent production; the Company's ability to convert commercial supply discussions into definitive agreements within anticipated timelines; anticipated global demand and projected growth for LFP batteries and energy storage, EV and defence applications; and other risk factors identified in Nano One's MD&A and its Annual Information Form dated March 25, 2026 for the year ended December 31, 2025, and in recent securities filings available at www.sedarplus.ca. Although management has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove accurate, and readers should not place undue reliance on forward-looking statements or forward-looking information. The Company does not undertake any obligation to update forward-looking information, except as required by applicable securities laws.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260826270085/en/

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