HPQ Silicon Projects Annual Capacity of 1.5 million HPQ ENDURA+ 18650 Cells

Initial production of engineered silicon-based anode material to be supplied by Novacium’s Lyon facility, with expansion plans targeting 50 tonnes per year to support up to 40 million cells.

MONTREAL, Canada — HPQ Silicon Inc. (“HPQ” or the “Company”) (TSX-V: HPQ) (OTCQB: HPQFF) (FRA: 8PY1), a technology company driving innovation in advanced materials and critical process development, is pleased to announce that Novacium SAS [1], has finalized its 2025–2026 production plan for its third-generation (GEN3) engineered silicon-based anode material.

Following internal assessments, Novacium has confirmed that its Lyon, France, facility is capable of producing approximately 2 tonnes per year (TPY) of GEN3 anode material. This production level supports the manufacturing of up to 1.5 million HPQ ENDURA+ and/or NOVACIUM-branded 18650 lithium-ion battery cells annually.

“Our ability to produce sufficient material for over a million high-performance battery cells per year is a tangible demonstration of the commercial readiness of our GEN3 technology,” said Bernard Tourillon, President and CEO of HPQ Silicon Inc. “By leveraging existing large-scale battery production facilities, we can bring advanced cells to market without delay and at competitive cost, while continuing to scale our material output.”

As outlined in our June 18, 2025, press release, cell production will be subcontracted to a large-scale battery manufacturer with the infrastructure already in place to meet the required volumes [2]. This approach enables HPQ and Novacium to rapidly transition from material production to commercial-scale battery cell deployment, without the need to invest in costly new facilities.

For context, comparable 18650 cells currently available on the market—typically offering lower energy density and shorter cycle life—retail between US$4.50 and US$8.00 per cell [3]. By delivering higher-performance alternatives in this established price range, HPQ and Novacium are positioned to capture meaningful value in a global market where annual demand for cylindrical cells continues to expand across mobility, consumer electronics, and energy storage sectors.

Novacium has further determined that expanding its GEN3 engineered silicon-based anode material production capacity to 50 tonnes per year (TPY) would enable the manufacture of approximately 40 million HPQ ENDURA+ and/or NOVACIUM-branded 18650 battery cells annually [4]. This scale of output would represent a significant step toward addressing the fast-growing demand for high-performance cylindrical lithium-ion batteries.

To advance this objective, HPQ is in active discussions with prospective public and private financing partners to support the development and construction of a dedicated 50-TPY pilot plant. The facility would be specifically designed for the production of GEN3 anode material, ensuring process consistency, scalability, and integration with existing cell manufacturing infrastructure.

Securing the required financing represents the next critical milestone for HPQ and Novacium. Once completed, the project will transition into detailed engineering, followed by construction and commissioning, setting the stage for scaled commercial production and long-term revenue generation.

“Scaling to 50 tonnes per year marks the bridge from limited pilot output to industrial relevance,” added Mr. Tourillon. “With financing and construction of a dedicated plant, we will be positioned to deliver tens of millions of advanced cells annually strengthening our ability to monetize our technology portfolio and pursue North American production opportunities in line with global supply chain priorities.”

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REFERENCE SOURCES
[1] Novacium is a cleantech start-up based in Lyon, France, founded by three French Ph.D. engineers—Dr. Jed Kraiem (COO), Dr. Oleksiy Nichiporuk (CTO), and Dr. Julien Degoulange (CIO)—and supported by HPQ Silicon Inc. The company aims to develop high-value-added technologies in the energy sector by combining deep scientific expertise with a strong industrial vision.
[2] For business and confidentiality reasons, the Company will not be disclosing the manufacturer’s name at this time.
[3] Based on HPQ and Novacium management’s review of publicly available pricing information and discussions with potential customers.
[4] Internal analyses prepared by the Novacium technical team.