Nano One Materials, a clean technology developer in battery materials, and Rio Tinto, a mining group, have agreed to enter a strategic partnership providing iron and lithium products.
Under the deal, Rio Tinto also made a strategic equity investment into Nano One for gross proceeds of $10 million. Upon closing, Nano One will issue a total of 4,643,148 common shares, approximately 4.9% of the current issued and outstanding Shares of Nano One, at C$2.7 (~$2.07) per in a non-brokered private placement.
This investment will be used to expand the company’s technology and supply chain development, commercialization, Nano One’s acquisition of the Candiac facility in Quebec, its conversion to One-Pot lithium iron phosphate, and industrial-scale piloting of other Nano One CAM technologies and working capital purposes.
Provisions of the investment agreement with Rio Tinto include participation rights in any future equity financings to maintain pro-rata ownership interest for five years from closing, a lock-up on securities dispositions, and a standstill for 12 months from the date of closing, subject to certain exemptions.
“Localized, clean, and secure supply chains are critical for the success of the energy transition that is now underway, and this requires partnerships with innovative companies like Nano One to help us differentiate, disrupt and accelerate the path to a net-zero future,” said Marnie Finlayson, Managing Director of Rio Tinto’s Battery Materials portfolio.
“The global transition to a low-carbon electrified economy will require millions of tonnes of battery materials, so it is critically important to produce these materials efficiently and with the lowest environmental footprint. Rio Tinto’s partnership and support complement our recent announcement to acquire Johnson Matthey’s LFP business in the nearby community of Candiac, Québec, and amplify the Government of Canada’s Mines-to-Mobility initiative, which aims to encourage a localized battery ecosystem to serve the broader North American market,” said Dan Blondal, CEO of Nano One.
Last Month, Nano One Materials entered a binding agreement to acquire all the outstanding shares of Johnson Matthey (JM) Battery Materials (JMBM Canada). JMBM Canada includes a 2,400 tonne per annum capacity lithium iron phosphate (LFP) production facility in Candiac, Quebec, inhabiting approximately one-tenth of the 400,000 square foot property.
Last Month, Electric vehicle solid-state battery technology provider Natrion raised $2 million in seed funding. Chicago-based TechNexus Venture Collaborative led the round with participation from Tamarack Global, Mark Cuban, Illinois Ventures, and other private investors.
According to Mercom’s Q1 2022 Funding and M&A Report for Storage, Grid, and Efficiency, total corporate funding (including VC, Debt, and Public Market Financing) in Battery Energy Storage came to $12.9 billion in 26 deals compared to $4 billion in 27 deals in Q4 2021. Funding was up significantly year-over-year (YoY) compared to $4.7 billion in 18 deals in Q1 2021.