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NEO Battery Materials Receives Final Site Approval for Land Use of 106,700 Square Feet for NBMSiDE Commercial Plant Facility by Gyeonggi-do, the Largest Economic Province in South Korea
Vancouver, British Columbia--(Newsfile Corp. - January 26, 2022) - NEO Battery Materials Ltd. ...
About this update from Neo Battery Materials Ltd
[{"type":"text","content":"NEO Battery Materials Receives Final Site Approval for Land Use of 106,700 Square Feet for NBMSiDE Commercial Plant Facility by Gyeonggi-do, the Largest Economic Province in South KoreaVancouver, British Columbia--(Newsfile Corp. - January 26, 2022) - NEO Battery Materials Ltd. (TSXV: NBM) (OTCQB: NBMFF) (\"NEO\" or the \"Company\") is extremely pleased to announce that the Company has successfully received the final site approval by the Province of Gyeonggi (\"Gyeonggi-do\" or the \"Province\") to construct the commercial plant facility of NEO's patented silicon anode materials, NBMSiDE, for electric vehicle lithium-ion batteries.Through NEO Battery Materials Korea Co., Ltd. (\"NBM Korea\"), a wholly-owned subsidiary of NEO, the Company secured land with approximately an area of 106,700 square feet, or 2.5 acres, for the initial phase of the NBMSiDE Commercial Plant Facility.NEO initiated the site search in August of 2021 after the announcement of a strategic decision made to construct its silicon anode commercial plant in South Korea. After intensive research, communication, and negotiations with 2 provincial authorities, NEO had decided to apply to Gyeonggi-do. NBM Korea has qualified an extensive and strict due-diligence process by the Province's authorities and the Foreign Investment Review Board based on NEO's commercialization timeline, viability and economic impact of the business with regards to the current battery materials industry and its downstream products, and various background reviews and stress tests.NEO's benefited land is situated in an industrial complex known as Oseong International (Foreign) Investment Zone (\"Oseong Zone\") in Pyeongtaek City, in which the land is designated solely for the use of foreign investment companies qualified by the Province of Gyeonggi. As a qualified company, NEO is entitled to several benefits and subsidies that will translate into both drastic cost savings in the short- and long-term for the anode material plant facility. The benefits include a 99% reduction of annual lease payments (or a payment of 1% of the officially assessed land value) with a long-term-based lease contract, and further to it, the annual lease payment can be immediately minimized to zero after the completion of the plant construction and fulfillment of requirements by the Province. The maximum lease perio...