Dive Brief:
- Canada-based NEO Battery Materials is establishing a U.S. subsidiary, the company announced last week.
- Known as NBM America, the subsidiary will allow NEO to take more advantage of funding offered through the Department of Energy and the Inflation Reduction Act.
- The battery maker plans to base its new division in Ohio, with a focus on expanding its silicon anode and new battery materials business. The first phase of the plan will include establishing an R&D center in the state.
Dive Insight:
NEO highlighted Ohio as a “strategic hub” for battery development in the U.S., noting that the state offers a “favorable business environment for foreign companies.”
The company is one of a slew that have flocked to Ohio for its talent pool and enticing financial incentives. NEO will join auto and semiconductor manufacturers including Intel and Ultium Cells in establishing facilities in the state.
“We are now actively pursuing the U.S. expansion strategy following highly positive results from optimization and commercialization progress of our silicon anode materials, NBMSiDE,” NEO President and CEO Spencer Huh said in a statement. “We also recognize the substantial potential for silicon waste recycling in the U.S. as we have secured core engineers and researchers.”
In addition to the state incentives and IRA funding, the company said the U.S. subsidiary would target venture capital funding that will focus on clean tech and strengthening EV infrastructure.
“Numerous opportunities will create a stable financial runway for NBM America to construct additional commercial plants and value-add projects like silicon waste recycling in the U.S.,” the company said in the press release.
