NEO Battery Enters Supply Intent Letter to Deliver High-Performance Batteries to Korean Drone Manufacturer for ROK Army Program
Press Release
Enters non-binding Supply Intent Letter for projected supply volume of over 45,000 high-performance battery cells (or 7,584 drone battery packs) to a South Korean drone manufacturer for use in an undisclosed Republic of Korea Army program
Expected supply timeline scheduled from July through October 2026, with an expected contract value of at least KRW 1.5 billion or CAD 1.37 million – final supply arrangement and pricing subject to definitive Product Supply Agreement
Reinforces NEO as a secure supply chain alternative and Western-allied source for high-performance batteries in drone/UAV applications
TORONTO, May 13, 2026 /CNW/ - NEO Battery Materials Ltd. ("NEO" or the "Company") (TSXV: NBM) (OTC: NBMFF), a low-cost, silicon-enhanced battery developer that enables longer-running, rapid-charging batteries for drones, robotics, and physical AI, is pleased to announce that it has entered into a non-binding Supply Intent Letter ("Agreement") to supply high-performance drone batteries to a drone manufacturing company based in South Korea (the "Counterparty") for an undisclosed Republic of Korea ("ROK") Army program.
Under the terms of the Agreement, NEO commits to supply 7,584 drone battery packs, comprising 45,504 battery cells, to facilitate the production of the Counterparty's drone platforms designated for the ROK Army program. The supply period is scheduled to commence in July 2026 and continue through October 2026, with an expected contract value range of at least KRW 1.5 billion (CAD 1.37 million) based on current raw materials, labour, and margin estimates. In accordance with ROK Army and ministerial-level procurement requirements to diversify away from foreign-dependent supply chains, NEO is uniquely positioned to ensure a low-to-no composition of Chinese-sourced components for full compliance with protocols.
"This strategic agreement reinforces NEO's growing presence within the defense drone market and the high-performance qualities of our battery cell technology," stated Mr. Spencer Huh, President and CEO of NEO. "By maintaining rigorous component quality and providing active technical support, we are ensuring our partners' production timelines and program requirements are met. This partnership further solidifies our footprint in the defense and commercial UAV supply chain and advances our commitment to establishing NEO as a reliable, non-Chinese alternative for specialized drone applications".
While this Agreement establishes the operational framework and confirms the scale of the intended delivery, specific unit pricing and detailed payment terms are expected to be settled through a formal Product Supply Agreement (the "Definitive Agreement") with the Counterparty as the ROK Army program scope is finalized. The Company cautions that this Supply Intent Letter is non-binding and the final supply arrangement is subject to the execution of the Definitive Agreement. As such, there can be no assurance that the projected volumes and contract value will be fulfilled or that a formal contract will be executed on the terms currently contemplated.
Drone and UAS applications represent a key catalyst segment within the global lithium-ion battery market, which was estimated at approximately US $9.1 billion in 2025 and is projected to exceed US $29 billion by 20321. As defense, industrial, and consumer UAV (unmanned aerial vehicle) usage scales, battery technology must evolve to meet rigorous performance requirements. Concurrently, advances in faster-charging architecture and complex BMS are broadening the drone/UAS market, enabling longer, safer operations and more efficient energy utilization. As a result, the synergy between drone platform advancement and battery innovation will be a major driver of sustained growth across both markets.
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/
Noah Note: NEO exists in such a weird state, based in Canada, with manufacturing, but for all intents they feel more like a Korean company than a Canadian one. No one will argue that this isnt good anyways, what with the company working to establish a proper line if defence-focused battery products which is always in demand.
Certainly as Canada’s EV ecosystem goes up in flames, pivoting to areas like defence, where battery systems are still growing heavily in interest, will be inportant for securing thw available manufacturing anf battery ecosystem that we have.
So happy to see, but also such a weird company…
It's not weird. It's the beginning of a beautiful friendship.