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NeoVolta and Expion360 Announce LOI to Advance Battery Manufacturing and Product Design

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NeoVolta (Nasdaq: NEOV) and Expion360 (Nasdaq: XPON) have signed a non-binding letter of intent (LOI) to potentially collaborate on developing a state-of-the-art battery manufacturing facility and innovative lithium-ion battery designs. Expion360 would contribute design and engineering expertise, while NeoVolta would provide capital and manpower.

NeoVolta has completed phase one of its $250 million U.S. Department of Energy Title 17 Loan Program application and received approval for phase two technical due diligence. The planned facility would employ over 150 workers to meet domestic content requirements established in the 2022 Inflation Reduction Act for Battery Electric Storage Systems (BESS).

NeoVolta (Nasdaq: NEOV) e Expion360 (Nasdaq: XPON) hanno firmato una lettera di intenti non vincolante (LOI) per una potenziale collaborazione nello sviluppo di un impianto all'avanguardia per la produzione di batterie e innovative progettazioni di batterie agli ioni di litio. Expion360 contribuirebbe con competenze di design e ingegneria, mentre NeoVolta fornirebbe capitale e manodopera.

NeoVolta ha completato la fase uno della sua domanda per il programa di prestiti Title 17 del Dipartimento dell'Energia degli Stati Uniti, del valore di 250 milioni di dollari, e ha ricevuto l'approvazione per la due diligence tecnica della fase due. L'impianto pianificato impiegherà oltre 150 lavoratori per soddisfare i requisiti di contenuto domestico stabiliti nell'Inflation Reduction Act del 2022 per i sistemi di stoccaggio elettrico a batteria (BESS).

NeoVolta (Nasdaq: NEOV) y Expion360 (Nasdaq: XPON) han firmado una carta de intención no vinculante (LOI) para una posible colaboración en el desarrollo de una instalación de fabricación de baterías de última generación y diseños innovadores de baterías de iones de litio. Expion360 aportaría experiencia en diseño e ingeniería, mientras que NeoVolta proporcionaría capital y mano de obra.

NeoVolta ha completado la fase uno de su solicitud de préstamo del programa Title 17 del Departamento de Energía de Estados Unidos por un monto de 250 millones de dólares y ha recibido la aprobación para la debida diligencia técnica de la fase dos. La instalación planificada empleará a más de 150 trabajadores para cumplir con los requisitos de contenido nacional establecidos en la Ley de Reducción de la Inflación de 2022 para los sistemas de almacenamiento eléctrico de baterías (BESS).

NeoVolta (Nasdaq: NEOV)Expion360 (Nasdaq: XPON)은 최첨단 배터리 제조 시설 및 혁신적인 리튬 이온 배터리 디자인 개발을 위해 협력할 잠재적인 비구속 의향서(LOI)에 서명했습니다. Expion360은 디자인 및 엔지니어링 전문성을 제공하고, NeoVolta는 자본과 인력을 제공할 것입니다.

NeoVolta는 2억 5천만 달러 규모의 미 에너지부 Title 17 대출 프로그램 신청서의 1단계를 완료했으며, 2단계 기술 실사의 승인을 받았습니다. 계획된 시설은 2022년 인플레이션 감축법에 따라 배터리 전기 저장 시스템(BESS)의 국내 콘텐츠 요건을 충족하기 위해 150명 이상의 근로자를 고용할 것입니다.

NeoVolta (Nasdaq: NEOV) et Expion360 (Nasdaq: XPON) ont signé une lettre d'intention non contraignante (LOI) pour collaborer potentiellement au développement d'une installation moderne de fabrication de batteries et de conceptions innovantes de batteries au lithium-ion. Expion360 apporterait son expertise en conception et ingénierie, tandis que NeoVolta fournirait le capital et la main-d'œuvre.

NeoVolta a complété la première phase de sa demande pour le programme de prêts Title 17 du Département de l'Énergie des États-Unis, d'un montant de 250 millions de dollars, et a reçu l'approbation pour la diligence technique de la phase deux. L'installation prévue emploiera plus de 150 travailleurs pour respecter les exigences de contenu national établies dans la loi de réduction de l'inflation de 2022 pour les systèmes de stockage électrique à batterie (BESS).

NeoVolta (Nasdaq: NEOV) und Expion360 (Nasdaq: XPON) haben einen unverbindlichen Letter of Intent (LOI) unterzeichnet, um möglicherweise bei der Entwicklung einer modernen Batterieproduktionsanlage und innovativen Lithium-Ionen-Batteriedesigns zusammenzuarbeiten. Expion360 würde Design- und Ingenieurexpertise einbringen, während NeoVolta Kapital und Arbeitskräfte bereitstellt.

NeoVolta hat die erste Phase seines Antrags auf das 250 Millionen US-Dollar umfassende Darlehensprogramm Title 17 des US-Energieministeriums abgeschlossen und die Genehmigung für die technische Due Diligence der zweiten Phase erhalten. Die geplante Einrichtung wird über 150 Arbeitskräfte beschäftigen, um die nationalen Inhaltsanforderungen zu erfüllen, die im Inflation Reduction Act von 2022 für Batteriespeichersysteme (BESS) festgelegt wurden.

Positive
  • Potential access to $250 million DOE loan funding
  • Strategic partnership with established battery technology company
  • Approval to proceed with phase two of DOE loan application
  • Plan to create 150+ high-paid manufacturing jobs
Negative
  • LOI is non-binding with no guarantee of formal agreement
  • Significant capital investment required for manufacturing facility
  • Phase two DOE loan approval still pending

Insights

This LOI between NeoVolta and Expion360 marks an important step toward domestic battery manufacturing capabilities, though its impact remains speculative at this early stage. The potential $250 million DOE loan, if secured, would significantly boost their manufacturing ambitions. The collaboration leverages complementary strengths - Expion360's battery design expertise and NeoVolta's capital resources.

The timing aligns with strong tailwinds from the Inflation Reduction Act's domestic content requirements. A successful partnership could position both companies advantageously in the growing energy storage market, particularly given the planned 150+ employee facility. However, as this is only a non-binding LOI, investors should note that final terms, timelines and execution risks remain undefined.

The energy storage market presents substantial growth potential, driven by increasing renewable energy adoption and grid reliability concerns. This partnership could help both companies capture market share while meeting domestic manufacturing requirements. For Expion360, with its modest $1.87M market cap, successful execution could be transformative.

However, the non-binding nature of the LOI and dependence on DOE loan approval introduce significant uncertainty. Competition in the battery sector is intense, with established players and well-funded startups vying for market share. While the strategic rationale is sound, investors should monitor concrete developments in facility planning, funding security and binding agreement terms before drawing firm conclusions about market impact.

SAN DIEGO, Dec. 11, 2024 (GLOBE NEWSWIRE) -- NeoVolta Inc. (Nasdaq: NEOV) (“NeoVolta”), a leading innovator in energy storage solutions, is excited to announce the execution of a non-binding letter of intent (“LOI”) with Expion360 Inc. (Nasdaq: XPON) (“Expion360”), a renowned expert in battery design and engineering, and an industry leader in lithium-ion battery power storage solutions. ​The LOI provides the framework for a potential collaboration that aims to leverage the parties’ shared resources to engineer a state-of-the-art battery manufacturing facility and develop innovative lithium-ion battery cell and module product designs, marking a significant milestone in the production of American-made batteries.

If the parties proceed with a formal engagement under the LOI, Expion360 intends to contribute its expertise in design and engineering, while NeoVolta plans to provide the necessary capital and manpower. ​Together, the companies expect to bring high-performance, sustainable energy storage solutions to the market to address the growing demand for efficient energy management in both residential and commercial applications.

Recently NeoVolta completed phase one of its loan application for $250 million from the U.S. Department of Energy (DOE) Title 17 Loan Program (LPO), and has been approved to proceed with phase two, consisting of technical due diligence. To meet domestic content requirements for commercial grade Battery Electric Storage Systems (BESS) and other components, NeoVolta must establish a state-of-the-art manufacturing facility that can accommodate more than 150 high-paid employees. Domestic content requirements for the entire industry were codified in the bipartisan Inflation Reduction Act (IRA) in 2022, and President-elect Trump has continued to promote American production throughout his transition announcements.

“We are thrilled to join forces with Expion360. This collaboration aligns perfectly with our mission to drive progress in renewable energy and enhance how the world stores and uses power. By taking this initial step to combine our strengths, we are confident we can deliver cutting-edge energy storage solutions that meet the highest standards of performance and reliability,” said Ardes Johnson, CEO of NeoVolta.

“Partnering with NeoVolta is a significant step forward for Expion360. We believe our expertise in battery design and engineering, coupled with NeoVolta’s resources and commitment to innovation, will enable us to create exceptional products that will set new benchmarks in the industry. ​We look forward to seeing the impact of our collaboration on the future of clean energy,” said Brian Schaffner, CEO of Expion360.

The LOI underscores the commitment of both companies to advance the future of clean energy through innovation and collaboration. ​As they work together to bring their American-made batteries to fruition, NeoVolta and Expion360 plan to make a lasting impact on the energy storage industry.

About NeoVolta

NeoVolta is dedicated to providing reliable, sustainable, and high-performance energy storage systems. With a focus on cutting-edge technology and strategic partnerships, NeoVolta is committed to driving progress in renewable energy and enhancing how the world stores and uses power.

About Expion360

Expion360 is an industry leader in premium lithium iron phosphate (LiFePO4) batteries and accessories for recreational vehicles and marine applications, with residential and industrial applications under development. On December 19, 2023, the Company announced its entrance into the home energy storage market with the introduction of two premium LiFePO4 battery storage systems that enable residential and small business customers to create their own stable micro-energy grid and lessen the impact of increasing power fluctuations and outages.

The Company’s lithium-ion batteries feature half the weight of standard lead-acid batteries while delivering three times the power and ten times the number of charging cycles. Expion360 batteries also feature better construction and reliability compared to other lithium-ion batteries on the market due to their superior design and quality materials. Specially reinforced, fiberglass-infused, premium ABS and solid mechanical connections help provide top performance and safety. With Expion360 batteries, adventurers can enjoy the most beautiful and remote places on Earth even longer.

The Company is headquartered in Redmond, Oregon. Expion360 lithium-ion batteries are available today through more than 300 dealers, wholesalers, private-label customers, and OEMs across the country. To learn more about the Company, visit Expion360.com.

Forward-Looking Statements and Safe Harbor Notice

This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which statements are subject to considerable risks and uncertainties. The Company intends such forward-looking statements to be covered by the safe harbor provisions contained in the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical facts included in this press release, including statements about our beliefs and expectations, are "forward-looking statements" and should be evaluated as such. Examples of such forward-looking statements include statements that use forward-looking words such as "projected," "expect," "possibility,” “believe,” “aim,” “goal,” “plan,” and "anticipate," or similar expressions. Forward-looking statements included in this press release include, but are not limited to, statements relating to NeoVolta’s and Expion360’s future development plans, growth prospects, and market opportunity; the contemplated collaboration between the parties, including the development of a manufacturing facility and product designs; NeoVolta’s ability to comply with regulatory requirements and obtain necessary approvals; and the impact of any collaboration between the parties on the energy storage industry. Forward-looking statements are subject to and involve risks, uncertainties, and assumptions that may cause the Company’s actual results, performance or achievements to be materially different from any future results, performance or achievements predicted, assumed or implied by such forward-looking statements.

NeoVolta Contact:
Kate Countryman
858-239-2349
press@neovolta.com

Expion360 Contact:
Brian Schaffner, CEO
541-797-6714
Email Contact

External Investor Relations:
Chris Tyson, Executive Vice President
MZ Group - MZ North America
949-491-8235
XPON@mzgroup.us
www.mzgroup.us


FAQ

What is the value of the DOE loan NeoVolta and Expion360 (XPON) are seeking?

NeoVolta is seeking a $250 million loan from the U.S. Department of Energy Title 17 Loan Program.

How many jobs will the new battery manufacturing facility create?

The planned state-of-the-art manufacturing facility is expected to create more than 150 high-paid jobs.

What is Expion360's (XPON) role in the battery manufacturing partnership?

Expion360 will contribute its expertise in battery design and engineering to the collaboration.

What stage is NeoVolta at in the DOE loan application process?

NeoVolta has completed phase one of the loan application and has been approved to proceed with phase two, which involves technical due diligence.

What regulatory requirements is this partnership addressing?

The partnership aims to meet domestic content requirements for Battery Electric Storage Systems (BESS) established in the 2022 Inflation Reduction Act.

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