Nano One Materials Corp. (TSX: NANO; OTCQB: NNOMF; Frankfurt: LBMB) is advancing plans to establish lithium iron phosphate (LFP) cathode production in Canada, beginning with a site evaluation for a proposed 25,000-tonne-per-year facility.
The Canadian company, which develops process technology for lithium-ion battery cathode active materials, said the proposed project could eventually expand production capacity to as much as 100,000 tonnes per year. The facility is intended to serve energy storage systems (ESS), electric vehicles (EVs) and defense applications in Canada and international markets.
The initiative, referred to as Canada Development Company, or Canada DevCo, represents Nano One’s first Development Company project and is part of its broader strategy to commercialize LFP cathode production through regionally focused supply chains.
The site evaluation study will examine potential locations based on access to utilities, transportation and other critical infrastructure, as well as permitting requirements and development timelines. Nano One said the findings will help establish operational site options for discussions with prospective customers and strategic partners.
“We are pleased to be advancing our first Development Company Project,” said Denis Geoffroy, chief operating officer of Nano One. He said customer demand is increasing for LFP cathode active materials produced through regional and resilient supply chains.
Canada emerges as strategic manufacturing base
Nano One sees Canada’s electricity infrastructure and access to industrial inputs as key advantages for the project. The company highlighted competitive industrial power costs and Canada’s relatively low-carbon electricity grid as factors that could support domestic LFP production.
The proposed facility would also build on Nano One’s experience at its Candiac facility in Quebec. The company expects its existing operations to contribute to technical development, workforce training and operational readiness as it progresses toward future commercial-scale production.
The project aligns with Canada’s automotive, defense and critical minerals priorities. LFP and its associated feedstock materials are identified on Canada’s Critical Minerals List, according to Nano One.
The company’s strategy is to connect domestic upstream resources with midstream cathode processing and downstream battery-cell manufacturing. Such an integrated regional supply chain could allow Canada to retain more value from its mineral resources while reducing dependence on geographically concentrated battery-material supply chains.
Feedstock qualification remains a key focus
Securing suitable domestic feedstocks is another major component of the Canada DevCo strategy. Nano One is working with Canadian suppliers to develop sources of battery-grade lithium carbonate, phosphoric acid and iron for future LFP cathode production.
Potential suppliers are at different stages of development, and Nano One is testing materials through its Burnaby research and development center and Candiac demonstration facility. The company said it is evaluating suppliers based on material quality, technical suitability, availability and their ability to support future production volumes.
Iron feedstock is receiving particular attention. Although Canada is a major iron ore producer, Nano One said the availability of locally sourced iron with the characteristics required for LFP production remains an important consideration in establishing a regional supply chain.
The company is also evaluating lithium and phosphate sources. Samples from potential suppliers and partners are undergoing testing and internal qualification.
Plant design moves toward deployment
Nano One has started early engineering work for a standardized 25,000-tonne-per-year production facility based on its One-Pot LFP cathode active material package. Part of the technology development is supported by funding from Natural Resources Canada, following an announcement made in April 2026.
Customer qualification activities are continuing at the Candiac facility alongside the engineering work.
The Canada DevCo initiative follows Nano One’s broader global LFP strategy, which the company outlined in August. Under that model, individual development projects are expected to be financed independently, using combinations of government support and private investment.
The approach could allow Nano One to expand its manufacturing footprint while tailoring individual projects to local supply chains, customer demand and strategic partnerships.
For Canada, the proposed project comes as governments and battery manufacturers seek to develop more localized supply chains for critical battery materials. LFP chemistry has gained traction in applications including energy storage and certain EV segments because of its cost and material characteristics, increasing the importance of secure access to its underlying inputs.
Nano One said it will provide further updates as the site evaluation, feedstock qualification and discussions with potential customers and strategic partners progress.
