Zentek Announces Preliminary Battery Results and University of Toronto Receives NSERC Mission Alliance Grant to Optimize Graphite for Battery Anode Use

Rhea-AI Summary

Zentek (Nasdaq:ZTEK)(TSX-V:ZEN) has announced preliminary battery results and a new three-year, $441,000 project in collaboration with the University of Toronto. The project, funded by an NSERC Mission Alliance Grant, aims to optimize graphite for battery anode use. Key highlights include:

1. Preliminary results show a minimum 17% increase in capacity for pouch cell batteries using engineered Albany graphite compared to commercial-grade anode material.

2. This project complements a $1.6M Mitacs research project announced in October 2022, focusing on multifunctional materials for automotive batteries.

3. Zentek is exploring both graphite production from its Albany Deposit and graphite processing for battery-ready anode material.

The company aims to develop premium anode materials that outperform commercial anodes in energy capacity, cycle life, and charging rate.

Positive

• Preliminary battery results show a minimum 17% increase in capacity using engineered Albany graphite
• Secured $441,000 in funding for a three-year project to optimize graphite for anode material
• Complementary to an existing $1.6M Mitacs research project for automotive battery materials
• Potential for vertical integration in the anode supply chain
• Positive feedback received on ability to upgrade Albany Graphite to five nines purity

Negative

• None.

Insights

Battery Technology Expert

This news is highly promising for Zentek's battery technology development. The 17% increase in capacity over commercial-grade anode materials is a significant improvement. If these preliminary results are confirmed, it could position Zentek as a strong competitor in the EV battery market.

The collaboration with renowned experts and the $441,000 NSERC grant demonstrate credibility and potential for further advancements. The focus on optimizing graphite for anode use aligns with the growing demand in the EV industry, where up to 125 kg of graphite is required per vehicle.

However, investors should note that these are preliminary results and further testing is needed. The long-term impact will depend on scalability and cost-effectiveness of the engineered graphite production.

Materials Science Analyst

The collaboration with Profs. Sain and Yan brings valuable expertise to Zentek's graphite optimization efforts. Their experience with Ford's PERDC and expanded battery production capabilities at U of T provide a strong foundation for research and development.

The focus on characterizing and optimizing Albany Graphite through various purification and engineering processes is crucial for meeting or exceeding commercial standards. The ability to achieve five nines purity is particularly noteworthy, as it could significantly enhance the value of Zentek's graphite products.

Investors should consider the potential for vertical integration in the anode supply chain, which could provide Zentek with a competitive advantage in the market. However, the success of this strategy will depend on the company's ability to scale production and maintain cost-effectiveness.

Market Analyst

Zentek's focus on graphite for EV batteries aligns with a rapidly growing market. With graphite identified as a critical mineral by the Canadian government, there's potential for strong government support and investment in the sector.

The company's dual approach of exploring graphite production from the Albany Deposit and developing value-added processing for battery-ready anode material positions it well in the battery supply chain. This strategy could lead to higher profit margins compared to selling raw graphite.

However, investors should be aware of the competitive landscape. Many companies are vying for a share of the EV battery market and Zentek will need to demonstrate consistent, scalable results to stand out. The long-term success will depend on the company's ability to transition from research to commercial production efficiently.

GUELPH, ON / ACCESSWIRE / August 8, 2024 / Zentek Ltd. ("Zentek" or the "Company") (Nasdaq:ZTEK)(TSX-V:ZEN), an intellectual property technology development and commercialization company is pleased to announce preliminary battery results and the commencement of a three-year, $441,000 project in collaboration with Professors Mohini Sain and Ning Yan from the University of Toronto ("U of T"). Funding for the project is provided by a Natural Sciences and Engineering Research Council of Canada ("NSERC") Mission Alliance Grant. Prof. Sain is the Endowed Ford Motor Canada Chair in Sustainable Materials and Prof. Yan is the Tier 1 Canada Research Chair in Sustainable Bioproducts.

Highlights

• Three-year $441,000 funding to optimize graphite for anode material.

• Promising preliminary results have already been achieved from this research with pouch cell batteries featuring engineered Albany graphite by U of T with a minimum 17% increase in capacity over batteries using commercial grade anode material.

• The project complements the $1.6M Mitacs research project with the same group, announced on October 28, 2022, aimed at inventing multifunctional materials for automotive batteries including anode, cathode, separator and electrolyte chemistries.

Graphite is one of the six minerals identified by the Canadian government as a priority on its list of critical minerals, with electric vehicle batteries requiring up to 125 kg of graphite per vehicle. Unlike most critical minerals, graphite's value varies widely based on use cases, which require different purity, crystallinity, shape and flake size thresholds.

With significant investment in the North American battery supply chain and growing demand for finished anode material, the company is exploring both graphite production from its Albany Deposit and graphite processing to produce battery-ready anode material.¹ The U of T project will play a significant role in this strategy.

The project with Profs. Sain and Yan will characterize and optimize the Albany Graphite by exploring various pathways to purify, increase capacity, enhance cycle life, and engineer the graphite to meet or exceed commercial standards for anode material in the EV market.

The U of T team brings experience from producing battery technology for the Ford Powertrain Engineering Research and Development Centre ("PERDC") and has recently expanded battery production capabilities at U of T to accomplish all critical processes and tests.

The U of T team has already successfully increased the capacity of an engineered graphite anode material through a simple modification step, resulting in pouch cell batteries with initial results showing a 17% increased capacity over pouch cell batteries using commercial-grade anode materials. These results are preliminary and will be verified through further testing or at an independent third-party facility. Improvements have also been achieved in other performance metrics which will be announced in subsequent updates.

Greg Fenton, Zentek CEO commented, "We are very pleased to see our collaboration expand with Profs. Sain and Yan, who are some of Canada's leading experts in carbon technology. We are confident that their experience and innovation will be instrumental in achieving our goal of developing premium anode materials which can be translated to graphite from the Albany deposit resulting in a finished product that outperforms commercial anodes in energy capacity, cycle life, and charging rate. The potential of our Albany Graphite continues to grow. We have received positive feedback from government and industry regarding our ability to upgrade Albany Graphite to achieve five nines purity. Integrating that purity with the graphite engineering work from Prof. Sain's team will lead to greater value as we pursue the value-add processing component of the anode supply chain to create a vertically integrated anode solution."

About Zentek Ltd.

Zentek is an ISO 13485:2016 certified intellectual property technology company focused on the research, development and commercialization of novel products seeking to give the company's commercial partners a competitive advantage by making their products better, safer, and greener.

Zentek's patented technology platform ZenGUARD™, is demonstrated to have 99-per-cent anti-microbial activity and to significantly increase the bacterial and viral filtration efficiency of both surgical masks and HVAC (heating, ventilation, and air conditioning) systems. Zentek's ZenGUARD™ production facility is located in Guelph, Ontario. Zentek's patent pending ZenARMOR™ technology platform is focused on corrosion protection applications.

Zentek has a global exclusive license to the Aptamer-based platform technology developed by McMaster University which is being jointly developed Zentek and McMaster for both the diagnostic and therapeutic markets.

For further information:

investorrelations@zentek.com

Ryan Shacklock
Tel: (306) 270-9610
Email: rshacklock@zentek.com

To find out more about Zentek, please visit our website at www.Zentek.com. A copy of this news release and all material documents in respect of the Company may be obtained on Zentek's SEDAR profile at http://www.sedar.com/.

Forward-Looking Statements

This news release contains forward-looking statements. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Although Zentek believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. Zentek disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

SOURCE: Zentek Ltd.

View the original press release on accesswire.com

FAQ

What is the purpose of Zentek's new $441,000 project with the University of Toronto?

The three-year project aims to optimize graphite for battery anode use, characterizing and enhancing Albany Graphite to meet or exceed commercial standards for anode material in the EV market.

What preliminary battery results has Zentek (ZTEK) announced?

Zentek has reported preliminary results showing a minimum 17% increase in capacity for pouch cell batteries using engineered Albany graphite compared to those using commercial-grade anode material.

How does this project relate to Zentek's (ZTEK) existing research initiatives?

This project complements a $1.6M Mitacs research project announced in October 2022, which focuses on developing multifunctional materials for automotive batteries, including anode, cathode, separator, and electrolyte chemistries.

What is Zentek's (ZTEK) strategy for graphite production and processing?

Zentek is exploring both graphite production from its Albany Deposit and graphite processing to produce battery-ready anode material, aiming to create a vertically integrated anode solution.