AGORACOM Small-cap Investor Relations Blog

TRANSFORMING WASTE INTO WEALTH: NOVACIUM’S GAME-CHANGING TECHNOLOGY

HPQ Silicon, through its France-based affiliate Novacium, has unveiled a groundbreaking Waste-to-Energy (W2E) technology that promises to address the global $3 billion challenge posed by Black Aluminum Dross (BAD)—a toxic byproduct of aluminum recycling. This innovative process converts the waste into valuable resources, including green hydrogen and heat, with significant potential for reducing costs and making aluminum recycling a fully circular process. With encouraging lab-scale pilot test results and growing interest from major European recyclers, this breakthrough is poised to reshape the aluminum recycling industry.

A NEW ERA IN ALUMINUM RECYCLING

Aluminum recycling has long been plagued by the environmental and economic challenges of Black Aluminum Dross, which has limited recycling options and is often sent to landfills. Novacium’s innovative solution uses a novel additive to increase hydrogen yield from BAD while neutralizing its harmful compounds, offering a cleaner, more efficient recycling process. This process not only produces green hydrogen but also generates heat and returns otherwise wasted aluminum back to the producer, making it a game-changer for the industry.

KEY DEVELOPMENTS AND PARTNERSHIPS

• Strategic Partnerships: Novacium’s breakthrough has attracted the attention of top-tier European aluminum recyclers, several of whom have already signed Non-Disclosure Agreements (NDAs) to explore the technology further.
• Exclusive North American License: HPQ Silicon holds the exclusive North American (Canada, USA, and Mexico) license for Novacium’s proprietary W2E technology, positioning the company as a key player in both the aluminum recycling and green hydrogen markets.
• Third-Party Validation: The technology has garnered praise from industry experts. Dr. Oliver Moos, Managing Director of Casthouse Engineering, highlighted the significance of Novacium’s approach, stating, “Black dross has been a historic challenge for the aluminum industry, and for the first time, I am seeing an innovative and promising approach developed to address this critical issue.”

A VISION FOR THE FUTURE

“The patent represents just the first step in establishing the value of this innovative process and demonstrating its transformative potential for the aluminum recycling industry. With potential savings of €600 to €1,000 per ton of Black Aluminum Dross processed, Novacium’s technology could reduce the global aluminum recycling industry’s waste management costs by up to $3 billion annually,” said Dr. Jed Kraiem, COO of Novacium.

As the technology progresses to the pilot stage, Novacium’s scalable and flexible design presents a clear path to commercialization. The process’s ability to produce hydrogen on-site for aluminum recyclers further enhances its potential, offering a dual benefit of waste reduction and clean energy generation.

CONCLUSION

With Novacium’s breakthrough technology poised to revolutionize the aluminum recycling industry, HPQ Silicon stands at the cutting edge of a transformative shift toward more sustainable and cost-effective practices. By turning harmful waste into valuable resources like green hydrogen, the company not only addresses a critical environmental challenge but also opens new avenues for growth in the green energy sector. As the technology advances and partnerships deepen, HPQ Silicon is well-positioned to lead the way in both the recycling and hydrogen markets, contributing to a cleaner, more sustainable future for the aluminum industry.

Key Milestones and Market Prospects

• Strategic Partnerships: Collaboration with the French Army’s Technical Section (STAT) underscores market confidence and expands pathways for military and civilian applications globally.
• Technological Breakthroughs: First prototype using GEN3 or GEN4 silicon-anode cells to be delivered in Q1 2025, with plans for rigorous military-grade testing.
• Commercialization Pathway: Full patent ownership for high-throughput silicon anode manufacturing strengthens HPQ’s licensing strategy and supports scalability with European gigafactories.

A Strategic Alliance with the French Army

HPQ Silicon Inc., through its subsidiary Novacium SAS, has entered into a groundbreaking partnership with the French Army’s Technical Section to develop high-capacity silicon-based batteries. These batteries will address critical military needs across applications such as surveillance systems, anti-drone technologies, tactical communications, and autonomous vehicles.

Novacium’s advanced silicon-anode materials enable a 30% increase in battery capacity, significantly extending operational range while reducing the load soldiers carry—key improvements for mission effectiveness.

Bernard Tourillon, President and CEO of HPQ Silicon Inc. and NOVACIUM SAS

“This strategic collaboration with STAT marks an important first step toward the commercialization of our silicon-based anode materials. It exemplifies how our innovative battery solutions address the growing demand for higher-capacity Li-Ion batteries. By advancing our proprietary processes through strategic agreements with key industry players like STAT, HPQ and NOVACIUM are positioning themselves as leaders and providers of next-generation energy solutions, aligned with the industry’s performance and sustainability goals.”

Patent Ownership Secures Commercialization Opportunities

HPQ has acquired full ownership of its patented high-throughput process for producing silicon anode materials. This strategic move eliminates royalty obligations and positions the company for partnerships with key industry players. 

Market Potential in High-Capacity Batteries

The silicon anode battery market is forecasted to exceed $1.8 billion this year, driven by demand for lightweight, high-capacity energy solutions. HPQ’s innovative approach and adaptability position it to seize significant market share across both defense and commercial sectors.

Driving Innovation Through Collaboration

HPQ’s alliance with STAT and its expertise in silicon-based energy solutions establish a strong foundation for scaling production and addressing energy challenges in industries ranging from defense to renewable energy. The prototyping phase will set the stage for broader adoption by the armed forces.

A Future Fueled by Innovation

With validated technology, strategic partnerships, and full patent ownership, HPQ Silicon is uniquely positioned to lead the next generation of energy storage solutions. Investors seeking exposure to the high-growth battery sector should monitor HPQ’s trajectory as it transforms innovative breakthroughs into scalable, revenue-generating opportunities.

KEY MILESTONES ON THE HORIZON

• Fumed Silica Scale-Up: The pilot plant is transitioning from producing grams to kilograms of fumed silica, with sample materials expected this month.
• Off-Take Agreement Discussions: HPQ continues ongoing discussions to secure offtake agreements, with additional potential evaluations in play with other parties under NDA. Signaling strong external interest in its groundbreaking technologies.
• Diversified Product Lines: Beyond disrupting the global fumed silica industry, HPQ’s advanced business lines include silicon anode battery materials and on-demand hydrogen production technology, broadening its appeal and reducing dependence on any single market segment.

SCALING UP: FROM GRAMS TO KILOGRAMS

The Fumed Silica Reactor (FSR) Pilot Plant, a state-of-the-art prototype, is designed to scale production from grams to kilograms per batch. HPQ is targeting semi-continuous operations in early 2025, aiming to produce 200 kilograms of commercial-grade fumed silica samples for rigorous testing and validation. These efforts are pivotal for transitioning to full-capacity operations, projected to deliver 161 kilograms per day—or 50 metric tons annually—by the end of 2025.

STRATEGIC PARTNERSHIPS AND MARKET VALIDATION

HPQ’s innovative products have already attracted interest from major industry players. Sample materials will undergo comprehensive testing, including evaluations by global leader Evonik under a Letter of Intent (LOI), as well as by other potential partners under NDA. These tests aim to ensure the products meet stringent standards, including high-purity requirements for food and pharma-grade applications.

CEO Bernard Tourillon highlighted HPQ’s diversified business approach as a key strengths in derisking the Company. With commercialization within reach and scalable production underway, Tourillon scored HPQ’s advancements in 2024 at 8.5 / 10, positioning it as a rising leader in next-generation materials.

OPTIMISTIC OUTLOOK: FULL COMMERCIALIZATION IN SIGHT

By Q1 2025, HPQ plans to optimize pilot plant operations to enable continuous production cycles and deliver commercial-quality materials at scale. Armed with cutting-edge technology, industry validation, and a clear roadmap, HPQ Silicon is poised to transform the advanced materials market and seize significant opportunities in multiple high-growth sectors.

This is just the beginning. 

HPQ Silicon continues to break new ground in the rapidly evolving world of battery technology. The company has just filed a provisional patent for its ground breaking manufacturing process of silicon-based anode materials, a key component for next-generation lithium-ion batteries.

This patent could have a major impact on energy storage technology by addressing critical challenges in cost, scalability, and sustainability, opening the door to tens of billions in addressable market opportunities.

“HPQ’s strategy will focus first on producing silicon-based materials for the 3C markets (Computer, Consumer, and Communication), which is projected to grow to US$ 38.3 Billion in 2030 and perfectly suited for the materials we’ve already validated at this stage of our development.”

ENTER HPQ SILICON INC. (TSX-V: HPQ) (OTCQB: HPQFF) 

HPQ Silicon recently unveiled a breakthrough that could significantly disrupt the battery industry. The standout feature? Their batteries have achieved an impressive 3,600+ mAh capacity after 300 cycles. This milestone, according to Tourillon, brings the company closer to solving the “Holy Grail” of battery longevity. As investors look for solutions in the growing battery market, HPQ’s advancement marks a step toward commercialization with potential widespread industry impact.

PROVISIONAL PATENT APPLICATION FILED

In today’s interview, Bernard Tourillon, CEO of HPQ Silicon, highlighted the strategic importance of this new patent. “Silicon holds immense promise for energy storage, but integrating it into batteries has been a costly and technically complex challenge,” Tourillon explained. The patent focuses on a continuous or semi-continuous process for manufacturing silicon-based materials, which could dramatically reduce production costs and improve energy efficiency. HPQ’s technology is designed to integrate seamlessly into existing battery manufacturing processes, avoiding expensive retooling—a significant advantage over competitors.

Key Takeaways

• High-Performance Anode Material: HPQ’s silicon-based anode materials have demonstrated exceptional results, delivering over 4,000 mAh in lithium-ion battery tests and retaining 93% of capacity after 300 cycles.
  
• Scalable Technology: The company’s new process promises to scale production while reducing costs by 25-30%, making it highly competitive in a growing market.
  
• Strategic Partnerships and Market Size: HPQ is in discussions with graphite companies and anode manufacturers, aiming to capture up to 15% of the growing global graphite market with its incredible silicon solutions, which translates into an addressable market of $33.8 billion by 2030.

A BOLD STEP TOWARD COMMERCIALIZATION

HPQ Silicon’s latest patent filing not only strengthens its intellectual property portfolio but also underscores its commitment to revolutionizing the battery materials market. As the global demand for efficient energy storage grows, HPQ’s innovative solutions could be key to unlocking silicon’s full potential. h

Watch or listen to the full interview to learn how HPQ plans to turn this innovation into commercial success.