NEO Battery signs partnership with Korean drone maker for tech development

NEO Battery Partners with Major Korean Drone Maker for Tech Development & Joint Entry into Canadian Market

Canada NewsWire

Preneu – One of South Korea's largest standalone drone/UAV manufacturers , developing airframes, flight controllers, IMA, and AI-based technologies as a full-stack solution

Formal, strategic partnership to advance and supply Korea-made drone and battery solutions for industrial and defense applications in domestic and international markets

To jointly propose and market products to Canada's public safety, infrastructure management, environmental, and defense sectors and to pursue governmental contracts and procurement projects

Closed strategic stock purchase agreement of operating subsidiary NBM Korea with Automobile & PCB Inc.

TORONTO , Sept. 29, 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, is pleased to enter into a joint development agreement (JDA) with a major South Korean drone systems and components manufacturer, Preneu Co., Ltd. (" Preneu "), to develop high-energy batteries optimized for Preneu's drone platforms. The parties have also executed a letter of intent (LOI) to collaborate on market entry and business expansion in Canada.

Following Preneu's custom drone battery purchase order announced on July 30, 2026 , NEO and Preneu have agreed to pursue a formal, strategic partnership framework to actively advance and supply a domestically manufactured, unified drone and battery solution for public safety, industrial, and defense applications in the Korean and international markets. Because both parties view the battery as a critical component that determines mission capability, national defense security, and supply chain resiliency, NEO and Preneu have also arranged to pre-emptively integrate and expand into overseas markets starting with Canada .

Established in 2017, Preneu is one of South Korea's largest standalone drone manufacturers by revenue, developing airframes, flight controllers, integrated modular avionics, and AI-based autonomous flight technologies as a full-stack solution. By 2028, Preneu targets producing 10,000 drones annually and has recently been awarded with a supply contract from South Korea's Ministry of National Defense as part of the "500,000 Drone Warrior Force" policy .

Under the JDA, the initial collaborative work will prioritize Preneu's training drone product, and additional models will be subsequently added within the same framework to optimize each aircraft's mission requirements. With an emphasis on improving energy density, the parties aim to balance airframe weight, payload tolerance, flight time, power output, and safety . Upon the developed products meeting the agreed performance and quality metrics, NEO and Preneu will negotiate and enter into long-term offtake agreements to initiate mass production and fulfill supply targets.

Under the LOI, NEO and Preneu will jointly propose and market drone-battery systems to Canada's public safety, infrastructure management, environmental monitoring, and defense/security sectors . The parties will analyze Canadian technical requirements, mission profiles for Arctic-climate conditions, and procurement protocols to optimize product specifications on a project-by-project basis. NEO and Preneu will also cooperate to secure local customers, wholesalers, and system integrators and pursue government contracts from various agencies.

" This strategic collaboration will serve as an opportunity to raise the standards for localizing core drone components manufacturing and establishing technical benchmarks for Korean-made drones , " stated Jong-Kyung Lee, CEO of Preneu. " Utilizing highly robust drone systems grounded on Korean technology, NEO and Preneu aim to expand the competitiveness of Korean-made drone components and systems in international markets ."

Closing of Korean Operating Subsidiary Share Purchase Agreement NEO also announces the closing of the strategic Stock Purchase Agreement (the " Transaction ") of its operating subsidiary, NEO Battery Materials Korea Co., Ltd. (" NBM Korea "), with Automobile & PCB Inc. (" A&P ") pursuant to TSX Venture Exchange (" TSXV ") Policy 5.3 – Acquisitions and Dispositions of Non-Cash Assets on conditional acceptance.

As announced on June 29, 2026, NEO has acquired 120,786 common shares of NBM Korea from A&P for an aggregate purchase price of KRW 715,542,466 (CAD 662,539) to strengthen NEO's ownership of its key operating asset. As of the closing, NEO directly owns 1,156,102 common shares of NBM Korea, representing approximately 90% of the issued and outstanding common shares. Pursuant to TSXV Policy 1.1, A&P is considered a Non-Arm's Length Party with a board member in NBM Korea and continues to hold 138,042 common shares of NBM Korea.

The Transaction is not subject to disinterested shareholder approval, and the Company has not issued any shares, warrants, or securities as finder's fees. The Transaction was subject to TSXV Policy 5.9 and Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (" MI 61-101 "), and the Company relied upon exemptions from the formal valuation requirements pursuant to Section 5.5(a) of MI 61-101 and the securityholder approval requirements pursuant to Section 5.7(a) of MI 61-101. Final acceptance of the Transaction is subject to the Company fulfilling certain conditions required by the TSXV.

About Preneu Co., Ltd. Preneu is a South Korean drone and unmanned aerial vehicle (UAV) manufacturer and develops proprietary software for flight control and system operations, specializing in various drone platforms including multicopter, helicopter, and vertical take-off and landing systems. Preneu has been recognized as an Innovation Premier 1000 company by the Korean Defense Acquisition Program Administration and Financial Services Commission and has received the AS9100 certification for aviation, space, and defense industries. For more information, please visit Preneu's website at: https://www.preneu.com/en/

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.

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Canada Newswire

September 29, 2026 - 5:08 AM PDT

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