TORONTO, July 27, 2026 /CNW/ — NEO Battery Materials Ltd. (“NEO” or the “Company”) (TSXV: NBM) (OTC: NBMFF), a low-cost, silicon-enhanced battery manufacturer enabling high-performance capabilities for drones, robotics, and physical AI, today announced its financial and operational results for the first quarter ended May 31, 2026. All amounts are in Canadian dollars unless otherwise specified.

“NEO is adding momentum from the increasing global requirements for high-performance, non-Chinese and Foreign Entities of Concern (FEOC) battery products and solutions and is highly focused on expanding business opportunities with battery materials and cell developers, drone/unmanned aerial vehicle (UAV) manufacturers, and robotics companies,” stated Mr. Spencer Huh, President & CEO of NEO. “We are first steadily building out the Korean drone OEM pipeline with customers and qualified leads by implementing a collaborative approach from product development, testing/validation, and feedback-based optimization. Due to elevated interest in Korean, high-quality contract manufacturing (CM) services and as a concurrent growth vertical, NEO is producing for NASDAQ-listed U.S. battery companies on a CM basis and is actively targeting CM leads to manufacture and reserve capacity for battery components and cells. The Company will provide further updates as contracts materialize.”

FY2027 Q1 Financial and Recent Operational Highlights

Recorded revenues of $178,964 and gross loss of $643,261, representing the lumpy, variable nature of early-stage commercial production and scale-up phase, where production volumes have not yet reached the levels required to offset fixed cost base. The Company expects this gap to narrow as throughput increases.Cash balance of $3,432,807, up from $63,775 in the previous fiscal year’s quarter.Secured drone battery pack purchase orders from three Korean and Japanese defense and industrial drone/UAV manufacturers for testing and field validation purposes, with more than 15 qualified leads within the Company’s pipeline under discussion for product development and collaboration. For qualified leads, there is no assurance on definitive orders, and NEO will provide updates as contracts are secured.Announced first publicly disclosed drone customer, Assetta Inc., following positive testing and validation of NEO’s battery products within customer’s drone systems – strategic collaboration to replace Chinese-manufactured batteries used in all platforms fully.Granted multi-year, non-dilutive $180,000 research investment through Mitacs Accelerate to advance high-power, niobium-based lithium batteries for defense and industrial applications with the University of Toronto.Secured purchase order for 10,000 units of 34Ah drone battery cells from a South Korean pack manufacturer and to develop high-energy battery cells for e-mobility applications for Southeast Asian markets.Successfully attained Korea Certification (KC) under KC 62133-2 standard for NEO’s 11.5Ah drone cell product on first submission. KC certification now enables commercial sale and distribution within the Korean market.

Mr. Huh added, “The Korea Defense Integration Strategy is the leading priority for executing on go-to-market and building brand awareness and value of the Company’s high-performance battery products. Increased domestic drone OEM leads are a direct testament to the need to replace Chinese supply chain reliance with performance-enhanced, Korean-manufactured alternatives. Furthermore, defense partnerships with various levels of command of the Republic of Korea (ROK) Army are acting as a unique distribution channel into the Ministry of National Defense to gain direct, recurring business from the military.”

Battery Cell Assembly Expansion Facility

Initiated construction for electrical capacity upgrade and retrofitting of the main industrial warehouse to build clean and dry room infrastructure for pouch cell manufacturing process. Construction for the formation process clean room (approximately 5,480 square feet) and tabless cylindrical pilot line partially completed to prepare for equipment installation.Contracted cell assembly equipment manufacturer with previous experience supplying to global battery cell manufacturers and planning to install end processes as the first expansion phase to increase cell assembly capacity at the first factory.Targeting phase-by-phase completion with initial production capacity of approximately 50MWh (1 to 2 million cells per year depending on battery size and throughput rate) and gradual scale-up to 250MWh nameplate capacity.

Product Development & Engineering Roadmap

Applying for KC certification of different product portfolios and undergoing UN 38.3 testing and certification for lithium batteries to ship and export batteries internationally.Designing high-energy product portfolios that achieve at least 320Wh/kg (watt-hours-per-kilogram) in gravimetric energy density with high-silicon loadings to target wider high-performance markets.Developing ultra-high-power solutions to replace conventional Chinese lithium-polymer battery products used in FPV strike drones with conventional battery chemistries and to integrate into new verticals, including defense submarines/unmanned underwater vehicles, short-range ballistic missiles, and battery backup units within AI data centers with niobium batteries.

“Along with increasing the utilization of electrode production from the first factory, the phased expansion of the 2nd battery cell assembly facility will be a key catalyst to remove manufacturing bottlenecks and fulfill high-volume orders for contract manufacturing and proprietary battery products. NEO will first install additional formation channels within the expansion facility to accommodate the anticipated increase in production volume of complete cell products in the second half of 2026. The Company intends to add working shifts at the first factory before the full installation and commissioning of the 2nd facility.”

The Company’s unaudited Consolidated Financial Statements and Management Discussion and Analysis for the first quarter ended May 31, 2026, are available on SEDAR+ at www.sedarplus.com and the Company’s website at www.neobatterymaterials.com.

About NEO Battery Materials Ltd.
NEO Battery Materials is a Canadian-South Korean battery technology company focused on developing and producing silicon-enhanced lithium-ion batteries in drones, robotics, physical AI, electric vehicles, and energy storage systems. With a patent-protected, low-cost silicon manufacturing process, NEO Battery enables longer-running and ultra-fast charging properties and provides end-to-end battery solutions from materials selection, cell architecture, and process optimization. The Company aims to be a globally-leading producer of high-performance lithium-ion batteries and materials, building a secure, robust battery supply chain for Western manufacturers. For more information, please visit the Company’s website at: https://www.neobatterymaterials.com/.

On Behalf of the Board of Directors
Spencer Huh
Director, President, and CEO

This news release includes certain forward-looking statements as well as management’s objectives, strategies, beliefs and intentions. All information contained herein that is not clearly historical in nature may constitute forward-looking information. Generally, such forward-looking information can be identified notably by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved”. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including but not limited to: volatile stock prices; the general global markets and economic conditions; the possibility of write-downs and impairments; the risk associated with the research and development of battery-related technologies; the risk associated with the effectiveness and feasibility of battery material, electrode, and cell technologies that have not yet been tested or proven on commercial scale or under real-world operating conditions; the risks associated with battery-related manufacturing process scale-up, including maintaining consistent material, component, and cell quality, production yields, and process reproducibility at a pilot, semi-commercial, or commercial scale; the risks associated with compatibility of existing battery chemistries, formulations, components, or designs; unforeseen risks associated with entering into and maintaining collaborations, joint ventures, partnerships, or commercial contracts with battery cell manufacturers, original equipment manufacturers, and various companies in the global battery and downstream end-user supply chain; the risks associated with the failure to develop and produce commercially viable battery-related products or that technical goals may not be achieved within expected timelines or budgets under a joint development or collaboration; the risks associated with the Company’s technologies and products not meeting performance requirements or customer specifications; the risks that prototype and pilot-scale products do not advance into commercially produced products or translate into commercial orders; the risk associated with battery components and cell purchase orders and offtake supply that may not be fulfilled in full, on time, or at all as actual revenue realization depends on delivery schedules, achievement of technical milestones, and customer acceptance and validation; the risk associated with losing official vendor registration or status with existing customers; counterparty risk upon delivery of prototype and commercial products; the risks associated with constructing, completing, securing, and financing pilot, semi-commercial, and commercial battery materials, components, and cell manufacturing facilities including the Canadian and South Korean facilities; the risks associated with potential delays or increased costs with site preparation, equipment procurement and installation, and facility commissioning; the risks associated with integrating silicon anode material production, electrode manufacturing, and cell assembly within a single operational cluster or the Company’s business portfolio; the risks associated with supply chain disruptions or cost fluctuations in raw materials, processing chemicals, and additive prices, impacting production costs and commercial viability; the risks associated with uninsurable risks arising during the course of research, development and production; competition faced by the Company in securing experienced personnel, contracts and sales, and financing; access to adequate infrastructure and resources to support battery materials, components, and cell research and development activities; the risks associated with changes in the technology regulatory regime governing the Company; the risks associated with the timely execution of the Company’s strategies and business plans; the risks associated with the lithium-ion battery industry and end-users’ demand and adoption of the Company’s silicon anode technology and battery products; market adoption and integration challenges, including the difficulty of incorporating silicon anodes and silicon battery products within battery manufacturers and OEMs’ systems; the risks associated with the various environmental and political regulations the Company is subject to; risks related to regulatory and permitting delays; the reliance on key personnel; liquidity risks; the risk of litigation; risk management; and other risk factors as identified in the Company’s recent Financial Statements and MD&A and in recent securities filings for the Company which are available on www.sedarplus.ca. Forward-looking information is based on assumptions management believes to be reasonable at the time such statements are made, including but not limited to, continued R&D and commercialization activities, no material adverse change in precursor, raw material, equipment, and relevant cost prices, development and commercialization plans to proceed in accordance with plans and such plans to achieve their stated expected outcomes, receipt of required regulatory approvals, and such other assumptions and factors as set out herein. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in the forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such forward-looking information. Such forward-looking information has been provided for the purpose of assisting investors in understanding the Company’s business, operations, research and development, and commercialization plans and may not be appropriate for other purposes. Accordingly, readers should not place undue reliance on forward-looking information. Forward-looking information is made as of the date of this presentation, and the Company does not undertake to update such forward-looking information except in accordance with applicable securities laws.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

SOURCE NEO Battery Materials Ltd.