- NEO Battery (TSXV:NBM) signed a joint development agreement with South Korean drone maker Assetta, becoming the company’s first publicly disclosed drone customer
- The partnership aims to replace Chinese-made batteries with NEO’s high-performance battery solutions for military and commercial drone platforms
- NEO will provide recurring custom battery development and supply, targeting longer flight times, greater payload capacity, and improved operational efficiency
- NEO Battery Materials stock (TSXV:NBM) opened trading at $0.29
Lithium battery technology stock NEO Battery Materials (TSXV:NBM) has signed a joint development agreement with South Korean drone and aerospace company Assetta Inc., marking the battery manufacturer’s first publicly disclosed drone customer and a significant step into the defense and unmanned aerial vehicle markets.
The agreement follows successful testing and validation of NEO’s silicon-enhanced battery products within Assetta’s drone systems. The partnership will focus on developing and supplying high-performance battery solutions tailored to Assetta’s current and future drone platforms, with an emphasis on improving flight performance while reducing reliance on Chinese-made battery products.
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Under the multi-phase collaboration, NEO will work closely with Assetta to create customized battery systems designed to increase flight time, payload capacity, energy density, and overall operational efficiency. The companies said the batteries will be manufactured through supply chains free from Foreign Entities of Concern, supporting growing demand for secure and reliable sourcing in defence-related applications.
The strategic objective is to replace the Chinese-manufactured batteries currently used across Assetta’s drone portfolio. As governments and defence organizations increasingly prioritize domestic and allied supply chains, the agreement could position both companies to pursue opportunities within South Korean military procurement programs.
Assetta develops a range of military-grade drone technologies, including lightweight reconnaissance vertical take-off and landing (VTOL) systems, drone components, and software solutions. The company also collaborates with LS Cable & System, part of South Korea’s LS Group, on the development of fibre-optic drones.
“Following our evaluation, Assetta intends to strategically transition our current drone batteries to NEO’s products and to deploy them primarily across our Korean defense contracts and solicitations,” Assetta’s CEO, Hyung-Jun Kim, said in a news release. “Within South Korea and Western-allied markets, NEO uniquely provides capabilities of end-to-end battery solutions and high-quality expertise from global battery makers that can flexibly adapt to changes in performance needs to meet the evolving needs of our products.”
In addition to defence applications, Assetta serves commercial sectors such as precision agriculture, logistics, and surveying and mapping. The company recently gained recognition after being selected to participate in the Republic of Korea Army’s inaugural Drone Combat Challenge, a program designed to evaluate domestically produced unmanned aerial systems (UAS) and counter-UAS technologies for potential battlefield deployment.
As part of the agreement, NEO will provide recurring development and supply services, creating system-specific battery products for Assetta’s expanding portfolio of drone platforms. Assetta will conduct field testing and validation of newly developed battery systems to accelerate commercialization and integration into operational programs.
For NEO, the partnership represents an important commercial milestone as it expands beyond traditional battery materials development into application-specific energy solutions for drones, robotics, and physical AI technologies. Success in the program could help establish the company as a supplier of advanced battery systems for both military and commercial drone operators seeking alternatives to Chinese battery manufacturers.
The collaboration highlights growing industry efforts to strengthen battery supply chain security while delivering higher-performance energy solutions for next-generation unmanned aircraft systems.
About Assetta
Assetta Inc. is a specialized Korean aerospace company developing and manufacturing drone and unmanned aerial vehicles for defence and industrial purposes. Assetta retains various drone products from corrugated cardboard drones for stealth and deep infiltration combat environments, fixed-wing VTOL for long-range reconnaissance, surveillance, and map surveying, and fibre-optic/tethered drones.
About NEO Battery Materials
NEO is a Canadian battery technology company developing silicon anode materials for lithium-ion batteries in electric vehicles, electronics and energy storage systems.
NEO Battery Materials stock (TSXV:NBM) opened trading around 3 per cent higher at $0.29 but has lost 50 per cent since the year began.
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