AGORACOM Small-cap Investor Relations Blog

Strategic Partnership in Europe: HPQ Silicon collaborates with a leading German industrial partner to scale silicon-based anode material production.

Meeting Surging Demand: Positioned to address Europe’s projected need for 300,000 tonnes of battery materials annually by 2030.

HPQ Silicon has signed an MOU with a well-established but unnamed industrial partner in Northern Germany, marking a significant step toward scaling its innovative silicon-based anode material production for batteries. This partnership leverages the German partner’s five decades of industrial manufacturing expertise, existing infrastructure, and fully permitted site to streamline operations and reduce commercialization risks.

FRAMEWORK FOR GROWTH

The MOU sets the stage for a Definitive Agreement, with key objectives including:

Provision of a site within the industrial park for manufacturing.

Engagement of an Engineering, Procurement, and Construction partner to ensure feasibility, cost management, and efficient construction.

A potential operational transition managed by the German partner for seamless execution.

“This partnership simplifies our pathway to commercialization by leveraging our partner’s operational expertise, ensuring we focus on delivering high-quality, cost-efficient battery materials,” stated Bernard Tourillon, CEO of HPQ Silicon.

TECHNOLOGY AND SUSTAINABILITY AT THE CORE

HPQ Silicon’s PUREVAP™ QRR technology plays a pivotal role in this collaboration, offering the dual capability to produce high-purity silicon as feedstock for anode materials and capture carbon off-gas to produce green synthetic fuel. These innovations align with Europe’s decarbonization goals and the push for sustainable battery material production.

POSITIONED TO MEET EUROPE’S GROWING DEMAND

With Europe projected to require up to 300,000 tonnes of advanced silicon-based anode materials annually by 2030, HPQ’s strategic partnership positions it as a key player in addressing this surging demand. The collaboration also supports local job creation and supply chain localization, critical to the EU’s clean energy strategy.

A MILESTONE TOWARD COMMERCIALIZATION

This MOU represents a major milestone in HPQ’s journey from pilot-scale development to commercial manufacturing. By integrating advanced technologies, operational expertise, and strategic market positioning, HPQ is poised to play a transformative role in the rapidly expanding battery materials market.

HPQ Silicon offers a rare opportunity to engage with a small-cap innovator at the forefront of clean energy and battery material solutions.

KEY MILESTONES & STRATEGIC INSIGHTS

• €750,000 Grant: Funding for an industrial-scale pilot plant, advancing both defense and civilian applications
• Legitimate Technological Breakthrough: HPQ achieves “a true technological breakthrough” according to patent examiner recognizing process as “unprecedented, with no prior art”
• Third-Party Validation: The technology has passed rigorous testing, earning recognition from patent examiners and drawing attention from both military and industrial sectors in Europe

“By providing the armed forces with the means to produce hydrogen on the ground, this innovation could represent a major step forward in achieving energy autonomy for European & North American armed forces. It strengthens their ability to operate independently without relying on conventional energy networks”

In a major leap forward, HPQ’s affiliate, Novacium, has been pre-selected by the French Defense Procurement Agency (DGA) for a prestigious €750,000 grant under the RAPID program, designed to support dual-use technologies with both military and civilian applications. This funding, which covers 75% of the costs, will be directed toward building an industrial-scale pilot plant for METAGENE™, an autonomous, on-demand hydrogen production system that uses a bulk, non-explosive aluminum-silicon-based alloy as the energy source.

“This grant is a game-changer—proof that our on-demand hydrogen production system is ready to meet the rigorous standards of military and civilian applications alike,” said Bernard Tourillon, President and CEO of HPQ Silicon Inc. and NOVACIUM SAS.

UNIQUE TECHNOLOGY DRIVING MARKET DISRUPTION

METAGENE™ represents a transformative shift in hydrogen production. Unlike traditional methods that require electricity, high pressure, and complex logistics, this system operates autonomously using a safe and low-cost alloy to produce hydrogen on-demand. Its simplicity, safety, and scalability make it ideal for remote, off-grid applications, especially in military operations. The technology is positioned to disrupt both the hydrogen energy sector and military energy solutions, with potential for global adoption.

STRONG THIRD-PARTY VALIDATION AND MARKET POTENTIAL

The patent for METAGENE™ has progressed to Patent Pending status, with a highly positive research report from the patent examiner noting that no prior art could be found. This recognition underscores the uniqueness and robustness of the technology, setting it apart in the crowded hydrogen market. With a 12-month operational timeline, the pilot plant is expected to demonstrate real-world hydrogen production capabilities, attracting further investment and commercial interest.

“It is rare, in a field as established as hydrolysis, to achieve a true technological breakthrough,” said Dr. Jed Kraiem, Chief Operating Officer of Novacium. “The recognition of our process as unprecedented, with no prior art, demonstrates that it is still possible to push the boundaries of innovation, even in mature fields.”

LOOKING AHEAD: TREMENDOUS MARKET POTENTIAL

The global hydrogen market is set for significant growth, and METAGENE™ is well-positioned to capitalize on this expansion, particularly with HPQ’s exclusive North American rights. The technology’s low carbon footprint, autonomous operation, and military applications ensure it stands out as a game-changing solution for both defense and industrial sectors worldwide. 

As interest builds, this breakthrough technology has the potential to attract global attention and investment, solidifying HPQ’s position as a leader in the rapidly growing hydrogen space.

This is just the beginning.

If you suffer from range anxiety when it comes to considering an electric vehicle, you’ll be interested to know that silicon is the holy grail to potentially solving capacity issues for EV batteries.  Silicon-based anodes have up to 10 times the energy density of a graphite-based anode, which is why Porsche, Mercedes and GM are betting on silicon-anode batteries

However, while silicon-based anode materials hold great promise for batteries, they are known to suffer from significant degradation during charging and discharging cycles. Solving this problem could open up a market for silicon anode materials that could reach $130B by 2033.

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

HPQ Silicon has unveiled a breakthrough that could significantly disrupt the battery industry. In today’s interview, CEO Bernard Tourillon discussed HPQ’s latest achievements. The standout feature? Their batteries have achieved an impressive 3,600+ mAh capacity with 93% retention 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.

SUPERIOR PERFORMANCE SETTING NEW INDUSTRY STANDARDS

HPQ’s GEN3 batteries have not only exceeded expectations, but they’ve also outperformed many industry benchmarks with their most recent 300 cycle performance results. “Most competitors don’t discuss progress beyond 300-500 cycles, but we’ve already reached these significant milestones,” noted Tourillon.

This consistent performance, combined with high efficiency in their 100% pure graphite battery, puts HPQ at the forefront of innovation in the battery materials sector. The real intrigue lies in the company’s ability to continue improving these metrics, raising the bar for future battery technology.

MARKET POTENTIAL AND GROWING INDUSTRY INTEREST

HPQ’s technology is capturing attention from key industry players. Tourillon confirmed that the company is already in pre-NDA and pre-LOI discussions with potential partners, a sign of significant interest in their patented continuous silicon oxide manufacturing process. Why? This process not only potentially triples production capacity but also slashes costs and energy consumption, making it a highly attractive solution for an industry hungry for scalable and efficient technologies.

STRATEGIC VISION AND PARTNERSHIP POTENTIAL

HPQ isn’t just about R&D; it’s about execution. Tourillon outlined the company’s ambitious business plan to fully integrate their advanced materials into the battery industry. With a provisional patent application underway and talks with industrial groups in Europe, HPQ is poised to scale up rapidly. “We are accelerating in the right direction,” said Tourillon, expressing confidence in the partnerships that could cement HPQ as a major player in the battery materials space.

CONCLUSION: A SMALL CAP WITH BIG PROSPECTS

HPQ’s breakthroughs, especially in achieving high-performance cycles and pioneering scalable production methods, position the company as a serious contender in the rapidly expanding battery market. With the right partnerships and continued innovation, HPQ Silicon is set to deliver solutions that could revolutionize battery performance.

To hear Bernard Tourillon delve deeper into HPQ’s vision, market strategy, and groundbreaking technologies, watch the full interview now.

In electric vehicle (EV) batteries, the anode serves as a critical component, acting as a storage vessel for lithium ions that are then released when the battery powers the car. Major players like Porsche, Mercedes, and GM are embracing this technology, recognizing its potential to revolutionize EV performance.

However, while silicon-based anode materials hold great promise for batteries, they are known to suffer from significant degradation during charging and discharging cycles. Solving this problem could open up a market for silicon anode materials that could reach $130B by 2033.

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

HPQ Silicon is positioning itself to become a key supplier of Silicon materials in battery anodes, which aligns with the US and Canadian government initiatives to establish domestic battery manufacturing ecosystems in an effort to reduce reliance on China.

Novacium, HPQ’s France-based affiliate, has acquired patents enhancing anode material performance, particularly in silicon-based Lithium ion batteries.

With the pressing demand for domestic battery material suppliers, HPQ Silicon’s advancements in silicon-based anode material position it as a crucial player in meeting the evolving needs of the electric vehicle industry while addressing supply chain vulnerabilities.

1 OF ONLY 3 COMPANIES IN THE WORLD TO SURPASS 4,000 mAh

The Company’s GEN3 batteries have reached an impressive average capacity of 4,030 mAh, nearing the current world record of 4,095 mAh. Dr. Jed Kraiem, COO of Novacium, remarked, “As we anticipated, our GEN3 materials have exceeded the 4,000 mAh mark, making us one of just three companies worldwide to achieve such results. We are optimistic about further advancements, with GEN4 materials potentially pushing capacities beyond 4,300 mAh.”

A 45% IMPROVEMENT OVER GRAPHITE BATTERIES

The new GEN3 silicon-based anode material demonstrates a remarkable 45% improvement over traditional 100% graphite batteries.  These advancements are illustrated in this performance graph, which highlights the results versus 2,780 mAh with standard graphite batteries to the current 4,030 mAh with HPQ’s GEN3 material.

INDUSTRY IMPLICATIONS AND FUTURE PROSPECTS

The integration of Novacium’s advanced anode materials represents a significant leap forward in battery technology, potentially accelerating the adoption of high-performance batteries across various industries.

Bernard Tourillon, President and CEO of HPQ Silicon Inc. and Novacium SAS, emphasized, “Our ability to produce full-size 18650 batteries with enhanced performance not only showcases our technological prowess but also facilitates smoother transitions for manufacturers, reducing costs and accelerating market deployment.”

PATH TO COMMERCIALIZATION AND STRATEGIC PARTNERSHIPS

While immediate commercialization may not be on the horizon, the company is exploring strategic partnerships to expedite production. Bernard noted ongoing discussions with companies interested in large-scale industrial applications and emphasized the broader potential of their technology. This includes the ability to produce silicon metal, synthetic green fuel, and advanced battery components. The company’s progress, including a letter of intent (LOI) with a major battery firm, highlights their commitment to overcoming challenges and achieving commercial success.

Conclusion: A New Era in Battery Innovation

HPQ’s achievement is more than just a technical milestone; it marks a pivotal moment in the evolution of battery technology. By surpassing the 4,000 mAh barrier and paving the way for even higher capacities with future materials,  HPQ Silicon is setting new standards in energy density and performance.

Following the Company’s 2024 AGM today, CEO Bernard Tourillon goes Beyond The AGM with George Tsiolis of AGORACOM to present the Company’s latest Power Point Presentation.

In electric vehicle (EV) batteries, the anode serves as a critical component, acting as a storage vessel for lithium ions that are then released when the battery is being used to power the car.

Graphite anodes, the current market dominators, have reached their peak energy density. This limitation is prompting a shift toward Silicon-based anodes, which offer up to 10 times the energy density.

Major players like Porsche, Mercedes, and GM are embracing this technology, recognizing its potential to revolutionize EV performance.

But while silicon-based anode materials hold great promise for batteries, they are known to suffer from significant degradation during charging and discharging cycles. Solving this problem will open up a market for silicon anode materials that could reach $130B by 2033.

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

HPQ Silicon is positioning itself to become a key supplier of Silicon materials in battery anodes, which aligns with the US and Canadian government initiatives to establish domestic battery manufacturing ecosystems in an effort to reduce reliance on China.

Novacium, HPQ’s France-based affiliate, has acquired patents enhancing anode material performance, particularly in silicon-based Li-ion batteries. With the pressing demand for domestic battery material suppliers, HPQ Silicon’s advancements in silicon-based anode material position it as a crucial player in meeting the evolving needs of the electric vehicle industry while addressing supply chain vulnerabilities.

OVERALL CAPACITY IMPROVEMENT OF ~30% VS. GRAPHITE BENCHMARK

HPQ announced remarkable results from the initial 50-cycle tests of GEN2 material. These tests demonstrated a 30% improvement in capacity compared to graphite benchmarks and a 14% enhancement over their GEN1 materials, positioning the company at the forefront of the battery innovation race.

MINIMAL DEGRADATION

The GEN2 material displayed minimal cycle degradation, with only about a 1% increase over 50 cycles, indicating robust durability.

STRATEGIC VISION

The results underscore HPQ’s strategic vision to become a leading manufacturer of advanced silicon-based anode materials in North America and Europe.

TRANSFORMING BATTERY TECHNOLOGY

The tests, conducted on 18650 industrial batteries, revealed the following:

• Capacity Comparison: Batteries with 100% graphite showed an average capacity of 2,775 mAh, while those with GEN1 and GEN2 materials exhibited 3,174 mAh and 3,379 mAh respectively.
• Durability Insights: Over the 50 cycles, GEN2 materials not only maintained superior capacity but also demonstrated negligible degradation, ensuring longer battery life.

Dr. Jed Kraiem, COO of Novacium, emphasized the practical implications of these results, stating,

“These results continue to showcase our ability to produce a blend of graphite and advanced silicon anode material that can be seamlessly integrated into existing anode manufacturing facilities, improving overall battery performance.”

Bernard Tourillon, President and CEO of HPQ Silicon Inc., noted,

“These achievements open new doors for HPQ as we strive to become a manufacturer of next-gen engineered silicon-based anode materials in jurisdictions that support these types of initiatives.”

As HPQ Silicon Inc. and Novacium continue to push the boundaries of battery technology, their GEN2 anode materials mark a critical step forward. This breakthrough not only highlights HPQ’s innovative capabilities but also underscores its potential for significant market impact.

HPQ Silicon has announced a significant partnership through a MOU with Impact Funding Europe (IFE), aiming to enhance their green technology projects. This collaboration seeks to leverage HPQ’s innovative silicon and silica-based technologies alongside IFE’s expertise in securing European Union funding, focusing on advancing sustainable industrial practices towards achieving global net-zero emissions.

Key Components of the HPQ-IFE Collaboration:

Focused Funding Initiatives: The partnership aims to utilize EU programs that may cover substantial project costs, prioritizing New Battery Technology and Green Hydrogen. This financial support is crucial for HPQ Silicon as it develops technologies like the PUREVAP™ Quartz Reduction Reactors and silicon-based anode materials for batteries.

Expertise and Track Record:

IFE’s success in international grant writing enhances HPQ’s capabilities to secure funding. The MOU plans to incorporate HPQ’s technologies into major EU-funded initiatives, tapping into the extensive funding available for the Green Deal and Industry Transformation, which exceeds 100 Billion EUR annually.

Anticipated Outcomes and Strategic Impact:

Advancing Technological Development: The collaboration is expected to expedite HPQ’s projects, particularly in creating low-cost, zero-emission silicon production and advanced materials for batteries. It also aims to explore the role of silicon in sustainable hydrogen production, furthering energy innovations.

Expanding Market Reach:

Aligning with IFE allows HPQ to access broader European funding opportunities, enhancing its position as a leader in sustainable technology. This alliance aims to boost HPQ’s operational capabilities and market presence in the green technology field.

Leadership Perspective:

“We are excited to collaborate with Impact Funding Europe to unlock opportunities for securing EU funding in the fields of Green Hydrogen and New Battery Technology,” said Bernard Tourillon, President and CEO of HPQ Silicon. “This partnership highlights our commitment to innovation and a sustainable future.”

The MOU between HPQ Silicon and IFE signifies a pivotal step for HPQ in the global sustainability arena. It positions the company to significantly influence the development of green technologies, aligning with global efforts towards environmental sustainability. This collaboration promises to drive technological advancements and market expansion, positioning HPQ Silicon as a key player in the green technology sector and a compelling investment in the small-cap market.