HPQ Positioned as Vital Supplier of Engineered SiOx Battery Material amidst new U.S. Regulations in North America

by Team HPQ

MONTREAL, Canada — HPQ Silicon Inc. (“HPQ” or the “Company”) (TSX-V: HPQ) (OTCQB: HPQFF) (FRA: O08), a technology company specializing in green engineering processes for silica and silicon material manufacturing, is strategically positioned to become a vital supplier of engineered SiOx materials for battery anodes as the US and Canadian governments use policy and other financial incentives to actively engage in creating homegrown battery manufacturing ecosystems.

HPQ is intensifying its efforts to produce 3N+ Silicon feedstock for use in manufacturing its engineered SiOx battery material. The company will achieve this by capitalizing on its innovative technologies and strategic partnerships to help address the growing need for high-quality, locally sourced materials in the burgeoning North American battery and clean energy sector.

The battery technology and electric vehicle manufacturing industries are rapidly growing, and HPQ understands the crucial role that engineered SiOx battery materials play in these industries.

Currently, the industry relies on almost 100 sources, all of which are based outside North America, to meet its SiOx requirements. This reliance on foreign supply chains not only jeopardizes the stability and reliability of supply but also exposes North America to the whims of global market dynamics and geopolitical upheavals.

Such dependence heightens the risk of supply chain disruptions in the region, making it increasingly susceptible to the volatile nature of international markets and shifting geopolitical landscapes.

“As indicated in our recent MOU with Ecellix (November 28, 2023, release), we are committed to deploying our technologies in North America to enhance the resilience of potential client supply chains and reduce dependence on foreign sources,” stated Mr. Bernard Tourillon, President and CEO of HPQ Silicon Inc and CEO of Novacium SAS. “The recent U.S. government regulations limiting non-regional content for EV tax credits [1] further validate the strength of our approach.”

HPQ recognizes that engineered SiOx materials for battery anodes is a key component in the electric vehicle industry and is committed to becoming a much-needed local source of this material to strengthen energy security and reinforce North America’s position in the rapidly expanding electric vehicle and clean energy sectors.

The company intends to use its proprietary technologies and those of its associated company, Novacium SAS, to meet the growing demand for engineered SiOx-based battery anode materials, aiming to enhance the performance of battery technologies.

“Beyond its strategic significance, HPQ’s pursuit of becoming a domestic engineered SiOx supplier aligns seamlessly with its broader environmental objectives,” added Mr. TOURILLON. “Engineered SiOx-based battery anode materials are pivotal in crafting high-performance, environmentally friendly batteries, a cornerstone of the effort to curtail carbon emissions and combat climate change.”

The new U.S. regulations, which establish a 25% ownership threshold for foreign entities of concern (FEOCs), have created a pressing demand for domestic suppliers of battery materials. HPQ is well-positioned to meet this demand and supply American companies with SiOx materials essential for the electric vehicle industry [1].

“By fostering a resilient SiOx supply chain, HPQ is contributing to regional innovation and economic growth and paving the way for a sustainable, eco-conscious future for North America and the global electric vehicle industry,” continued Mr. Tourillon.

[1] December 1, 2023, Bloomberg article, “US Sets Limits on Chinese Content to Receive EV Tax Credits.”

HPQ Silicon is a Quebec-based TSX Venture Exchange Tier 1 Industrial Issuer. With the support of world-class technology partners PyroGenesis Canada and NOVACIUM SAS, the company is developing new green processes crucial to make the critical materials needed to reach net zero emissions.