NEO Battery Materials Ltd. announced that the Company has successfully completed the conceptual design of its semi-commercial plant facility and is now entering the initial EPC (Engineering, Procurement, and Construction) stage for the construction of the facility in South Korea. As per the news released on July 8, 2021, the Company's management and engineers initiated the conceptual design of the pilot plant in which the capacity was later upgraded to a semi-commercial scale due to positive internal results and the need for agile integration into the lithium-ion battery supply chain for electric vehicles (EV). The conceptual design report has validated that the annual production rate of 120 tons of silicon anode materials is viable through NEO's proprietary process. In addition to the completion of the Basic Engineering Design Data (BEDD), the Configuration and Equipment of major production processes for NEO's one-pot nanocoating technology have been confirmed and finalized. This report has allowed the Company to determine the required Raw Materials and Utility to accommodate for the annual production of 120 tons, and guidelines for health, safety, and environment (HSE) for the facility have been presented within the report. NEO will now immediately commence the Engineering EPC (Engineering, Procurement, and Construction) stage for the construction of the semi-commercial plant. The Company expects the plant to be completed and commissioned by the end of 2022. The conceptual design of the facility was carried out in full consideration of scaling up to a full commercial plant, and as the design follows a globally recognized International Code, there will be no restriction or limitation for future commercial plants being built elsewhere such as North America and Europe.