Sumitomo Metal Mining (SMM), a vertically integrated miner, refiner and producer of cathode active materials (“CAM”), is investing 16.9 million Canadian dollars in the Canadian battery developer Nano One Materials as part of a strategic partnership. Both companies are cooperating to accelerate the commercial production of LFP and NMC cathode materials.
Specifically, the Japanese company will acquire just under 5.5 million ordinary shares at a price of CAD 3.07 each in a private placement. After the deal is completed, Sumitomo will hold around five per cent of the shares. In other words: Nano One is currently valued at 338 million CAD.
SMM has a company history going back more than 400 years and has also been offering nickel-containing precursor materials for battery production for many years. It was not until 2022 that LFP materials were added to the battery range. The focus of the cooperation with Nano One is likely to be on LFP, although NMC materials are not ruled out
Nano One plans to build its first commercial LFP factory next to its existing pilot plant in Candiac in the Canadian province of Quebec. The company is close to completing a front-end loading feasibility study (“FEL-2”). The information obtained will help determine key factors such as manufacturing costs, production line size, total capacity and schedule.
Nano One also has a development cooperation with BASF, which was concluded in 2022. Also in 2022, commodities giant Rio Tinto had invested ten million dollars in the Canadian battery developer.