Co-funded PoC Agreement with Global Top 5 Auto OEM

Gelion is seeking to replace the critical minerals in current Lithium-ion battery cathodes with the Company’s Nano-Encapsulated Sulfur (NES™) that are low cost and can be dropped into existing global manufacturing lines. Gelion’s NES™ is made from sulfur which is abundantly available and free from supply chain constraints.

Gelion (LSE: GELN), the sulfur battery company, is pleased to announce that it has entered into a co-funded Proof of Concept Agreement (the "Agreement") with a top five global automotive original equipment manufacturer (OEM Partner), to jointly undertake a pilot program to test and evaluate Gelion's proprietary Nano-Encapsulated Sulfur (NES™) cathode active material under conditions relevant to electric vehicle (EV) battery applications.

Under the Agreement, the OEM Partner will supply engineering expertise, advanced battery testing facilities and capabilities, and a contribution to the program funding. Gelion will conduct complementary testing to correlate performance data throughout the programme.

This agreement represents the first co-funded evaluation program by a global automotive OEM of battery cells incorporating Gelion's NES™ cathode material with a graphitic anode following the Materials Testing Agreement (MTA) with a top 15 global automotive player announced last week. NES™ has the potential to be a drop-in cathode material for existing battery production lines without major re-tooling.

Highlights

First co-funded program to evaluate cells built and designed with Gelion’s NES™ with a graphitic anode by a global automotive OEM

OEM Partner is contributing engineering expertise and battery testing facilities.

Broadens Gelion’s development and testing in EV applications, beyond ongoing program with Nissan UK utilising NES™ for solid state battery development and MTA with a top 15 global automotive OEM announced last week.

Successful completion will represent an important step in the automotive industry's validation of Gelion's NES™ cathode material

Gelion's NES™ cathodes are designed to be compatible with standard anodes and electrolytes currently used in battery manufacturing and have been demonstrated for use with a wide variety of battery chemistries for applications including EVs, devices and military and commercial drones.

Commenting on the Agreement, Matt Wood, Gelion CEO, said, "This agreement with a top 5 global automotive manufacturer marks a major milestone in the validation of our NES™ cathode material. Combining Gelion's materials expertise with the OEM Partner’s engineering capability and battery testing facilities provides an excellent opportunity to demonstrate the performance and manufacturability potential of our material for demanding automotive applications.”

“We believe NES™ has the potential to address key challenges for EVs by using abundant sulfur and domestic supply chains to deliver high performance at a wide range of temperatures as a drop-in to existing production lines. We look forward to working with the OEM Partner to test Gelion’s NES™."