Gelion CEO: Top-five automaker backs NES cathode in first co-funded EV evaluation

This agreement signals growing momentum for Julyon in the EV market.

following the agreement announced last week with a top 15 global automotive OEM.

Hello you're watching Proactive. I'm joined by Julyon CEO Matthew Wood. Matt it's very good to speak with you. What is the proof of concept agreement and what's the significance for Julyon?

Hi Stephen. Well, um, yeah, I'm happy to say we've signed today a a co-funded proof of concept agreement with a top five global automotive OEM.

Um under which we'll work together through a a program to test our nano-encapsulated sulfur cathode active material or NES

uh for use in batteries for electric vehicles. Um, the OEM partner will supply engineering expertise, um, advanced testing uh facilities and capabilities and a contribution to the program funding.

And Julyon will provide uh the battery cells made with our nano-encapsulated sulfur uh and we'll conduct complementary testing to correlate performance data throughout the whole the whole program.

In terms of the significance, um, I think there are probably three things.

Firstly, this is the first co-funded evaluation of cells containing our NES material by a global automotive OEM.

And that means additional commercial revenue in 2027, albeit modest, uh on top of the revenue from the JDA uh with Mitsui Kinzoku that we announced in in August.

Secondly, um this agreement signals growing momentum for Julyon in the EV market. Uh following the agreement announced last week with a top 15 global automotive OEM, and on top of our solid state battery program with Nissan in Europe that we announced in June.

So this new agreement demonstrates both growing breadth in EV, uh with a greater number of companies assessing our Nest cathode materials and a growing depth in EV with a greater number of cell chemistries now being evaluated with our material.

And that greater breadth and depth means that our materials are now are being assessed for a wider variety of opportunities in EV, from from luxury vehicles with very high capacity, high power cells, through to more mass market EVs with more modest pack sizes, but a greater number of vehicles sold.

And then lastly, um this momentum can only increase the attractiveness uh of Julyon's ne- Nes cathode materials to potential licensees. Um, because EVs represent an extremely large market.

Um the qualification timelines are typically a little longer than some of our other target markets, but 70% of the world's lithium ion batteries go to EVs today. And so it's by far the largest battery application by volume.

Matt, what's driving the increased auto OEM interest in your technology?

Uh well, I can't speak on behalf of our partners, but in my view, there are two main factors at play. Um, firstly, the value proposition of our NES material. Um, it offers automotive companies and their battery suppliers

a high capacity, high power cathode material that's cheaper and lighter than incumbent materials and can enable a lower risk domestic supply chain. Um, secondly,

uh, there are the EV market dynamics. Um, and with pressures on the automotive industry to compete with Chinese EVs, um, OEMs are increasingly looking to alternate materials for lower cost, improved performance and reduced risk. And so, um, Julyon's providing a great material

at the right time. Um, and I'd like to think that any OEM facing those market pressures is is missing out if they're not testing our Nest cathode.

Matt, how do these automotive collaborations link with the other announcements that we've seen from Julyon recently?

Yeah, that's a very good question and and probably on the lips of many of our investors. Um, so our initial target markets for NES cathode materials are defense and aerospace, consumer electronics and electric vehicles.

The defense and aerospace and consumer electronics markets are more modest sized but potentially higher unit value markets. And EVs represent a much larger battery market but with longer qualification cycles.

And we're addressing these markets through NES cathode materials for both lithium metal cells and graphitic cells. And so the recent announcements with really top automotive OEMs,

uh for EVs including today's announcement, coupled with the recent announcement of the drone mission testing results from the armed for program with kinetic. I think these things together really demonstrate that strategy in action, and we're making very good progress.

Well, Matt, I hope you'll continue to keep us updated with your progress. Thank you very much for your time today.

Thanks Stephen, good to see you.

That's Julyon CEO Matthew Wood.