NEO Battery Materials, a low-cost silicon anode materials developer that enables longer-running, rapid-charging lithium-ion batteries, has entered into a definitive lease agreement with the City of Windsor, Ontario, securing 8 acres of surplus lands at Windsor Airport. 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.
Advancing Canada and Ontario’s Battery Ecosystem
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 CAD 69 million, NEO expects to invest approximately CAD 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 favorable 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.
Mr. Drew Dilkens, Mayor of the City of Windsor and Board Chair of Invest WindsorEssex commented, “Today’s announcement is a testament to Windsor’s strategic location, skilled workforce, and leadership in the automotive and EV industries. NEO Battery Materials’ decision to invest in our city highlights our ability to attract forward-thinking companies that drive innovation and create opportunities for our community. As the Automotive and Automobility Capital of Canada, and one of the most important communities to watch in the province and country, we are excited to welcome NEO to Windsor and look forward to the positive impacts, including job creation, this investment will bring to our region.”
Mr. Joe Goncalves, Vice President of Investment Attraction & Strategic Initiatives at Invest WindsorEssex, expressed, “We are thrilled to welcome NEO Battery Materials to Windsor-Essex, a testament to our region’s strategic location and prominence as a global leader in next-generation vehicle production and battery manufacturing. We are proud to support NEO Battery Materials in establishing their innovative operations here and look forward to their continued growth and impact in our community.”
“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.”
Mr. Tom Schnekenburger, Director of Research Partnerships at the University of Windsor, commented, “Creating a thriving innovation ecosystem in Windsor-Essex comes from collaborations with teams like NEO Battery Materials. These projects are crucial to developing a world-class talent pool and critical to advancing R&D and material discovery.”
