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Item 1. Business

2025-04-16 compared with 2024-04-12 · 546 added, 659 removed, 48 unchanged (96% of the section changed)

In this Annual Report on Form 10-K (the

“Form 10-K”), references to the “Company” and to “Solidion” “we,” “us,”

and “our” refer to Solidion Technology, Inc.

Corporate History and Background

this Annual Report on Form 10-K (the “Form 10-K”), references to the “Company” and to “Solidion”

“we,” “us,” and “our” refer to Solidion Technology, Inc.

History and Background

We were originally incorporated in Delaware on

11 unchanged sentences

Closing and we became the owner, directly or indirectly, of all of the equity interests of Honeycomb Battery Company and its subsidiaries.

In light of the fact that the Business Combination has closed and our ongoing business will be the business formerly operated by HBC,

this business section primarily includes information regarding HBC’s business.

Technology, Inc, previously known as “Honeycomb Battery Company”, formerly the

energy solutions division of Global Graphene Group, Inc.

(“G3”), is a Dallas,

TX, USA-based advanced battery technology company focused on the development and commercialization

of battery materials, components, cells, and selected module/pack technologies.

The cofounder

of Solidion, Dr.

Bor Z Jang, filed a U.S.

patent application on graphene in 2002.

The research and development team led by cofounder Dr.

Aruna Zhamu and Dr.

invented graphene-enhanced batteries and built the world’s first manufacturing facility

for graphene-enabled silicon anode materials for lithium-ion batteries.

Solidion is recognized as a global leader in

intellectual property (“IP”) in both the high-capacity anode and the high-energy solid-state battery, as recognized by KnowMade,

a French company that specializes in research and analysis of scientific and patent information.

Solidion is uniquely positioned to offer

advanced anode materials (delivering a specific capacity from 300 to 3,500+ milliampere-hours per gram mass (“mAh/g”))

as well as silicon-rich all-solid-state lithium-ion cells, anodeless lithium metal cells, and lithium-sulfur cells, each featuring an

advanced polymer or hybrid solid electrolyte that is most process-friendly.

Subject to the Supply and License Agreement between G3 and

Solidion, which limits the manufacture of graphene and graphite products for use in our battery-related products and prohibits resale

to third parties, we believe we are well positioned to supply graphite-based anode materials from sustainable sources.

Our all-solid-state battery platform technology

is capable of transforming the entire electric vehicle (“EV”) battery space into a solid-state battery industry.

solid-state cells that can be manufactured at scale using current lithium-ion cell production facilities, requiring no new design, no

new infrastructure, and no new supply chain.

Our batteries are capable of delivering significantly extended EV range, improved battery

safety, lower cost per kilowatt hour, fastest time-to-market, and enable next-gen cathodes with the potential to replace expensive nickel

and cobalt with sulfur (S) and other more abundant elements.

We hold a total of over 520 patents (355 in the

United States and 165+ foreign patents) for next-gen batteries.

KnowMade has acknowledged us as one of the two U.S.-based leaders

in solid-state electrolytes, as well as ranked us as the top company in the United States and top battery startup in the world in

silicon anode technology.

Additionally, Lexis/Nexis has recognized us as a Global Top 100 Innovator.

Industry Background

Vehicle electrification provides once-in-a-century

market opportunity, with an over $300 billion EV battery market by 2030.

Transportation electrification has triggered a

new run of battery sourcing competition, with potentially up to approximately 5,300 GWh lithium battery demand by 2030, a 500%+ increase

from 2020, and a predicted supply shortfall of approximately 3,700 GWh (Fig.

In addition, battery-grade graphite demand is expected

to grow by a factor of 10x from 2019 to 2030.

Graphite anode in batteries is expected to grow from 170,000 MT in 2018 to 2.23 million

1 Global lithium-ion battery demand forecast

The battery technologies developed by Solidion

are aimed at addressing today’s EV battery challenges:

the need for increased energy density, fire safety, fast charging and lower

Today’s EV batteries are largely based

on the lithium-ion cells wherein each cell is typically composed of an anode (negative electrode), a cathode (positive electrode), a

separator that electrically isolates the two electrodes, and a liquid electrolyte that permeates into both electrodes and provides a

medium through which lithium ions can whim back and forth between the anode and the cathode.

These essential components are encased in

a protective housing, allowing two terminals to protrude out of the housing for connecting to an external circuit.

The incumbent anode material is graphite that

stores lithium ions to a theoretical specific capacity of 372 mAh/g (practically 340-360 mAh/g).

A lithium-ion cell, having

a graphite anode and a lithium nickel cobalt manganese oxide cathode (NCM, 175-200 mAh/g), provides a specific energy of typically 220-250

watt-hours per kilogram (“Wh/kg”).

By replacing graphite with silicon (Si), having a theoretical specific capacity of 3,580-4,000

mAh/g, one can obtain a cell having an energy density of 350-400 Wh/kg.

Large shortfall in global graphite anode

material supply.

Anticipated shortfalls, relying on data from Benchmark Mineral Intelligence and estimations from peers, in graphite

anode material supply are approximately 400kt and 300kt in 2025 and 2030, respectively, within North America.

Mining of natural graphite

and production of artificial graphite from petroleum or coal sources are generally viewed as not environmentally benign, and sustainable

sources of graphite are preferable.

Market forecasters predict graphite demand from battery makers will grow by 23% – 27% each

year through 2028 and that planned capacity and projects in development will not be able to meet forecasted demand as soon as 2025.

markets for EV and flame-retardant building materials (“FRBM”) are driving the demand forecast above existing and new sources

of supply of graphite.

None of the top 10 graphite suppliers is

located in North America.

All of the top 10 global graphite anode material suppliers are based in Asia.

Significant graphite

manufacturing capacity is needed in North America to fill the gap between North American supply and demand.

We are well positioned to

be a leading supplier of various anode materials in North America and other regions.

Solidion management team has worked in the

field of carbon and graphite materials for over 30 years, and the first to convert graphite to graphene.

The team began to work

on the development of advanced graphite-, silicon oxide-, and silicon-based anode active materials for lithium-ion cells, and protected

lithium metal-based anodes in 2007 and it believes it has established the best IP portfolio in this space.

The Supply and License Agreement

allows Solidion to manufacture graphene and graphite products for use in our battery-related products and prohibits resale of the manufactured

graphene and graphite products other than after modification to create electrode materials.

Current solid-state lithium metal batteries

are incompatible with current lithium-ion cell production equipment.

This is the major barrier to widespread adoption.

sintered ceramic separators are brittle, expensive, and difficult to fabricate.

Several technical issues, such as high interfacial impedance,

high stack-holding pressure, and low active material proportion, remain to be resolved.

Graphite may be replaced with lithium metal (Li)

in the anode to obtain a lithium metal battery, which is commonly believed to be capable of delivering an energy density in the range

of 400-500 Wh/kg, depending upon the cathode material used.

However, such a potential benefit does not come without challenges.

During the charge-discharge cycles of a lithium metal cell, a needle-like feature called “lithium dendrites” may form on

the lithium metal in the anode.

The dendrite can penetrate through a separator and reach the cathode side to cause internal shorting,

which poses fire and explosion hazards.

In addition, repeated reactions between lithium and liquid electrolyte continue to consume both

the active lithium ions and the liquid electrolyte, leading to rapid capacity decay.

These issues have thus far impeded the practical

utilization of lithium metal batteries to replace the conventional lithium-ion batteries for EV application.

Solidion has been developing

lithium metal protection strategies aiming to address these technical issues.

The safety of lithium-ion or lithium metal batteries

hinges upon the availability of a non-flammable electrolyte.

The liquid electrolytes commonly utilized in current lithium-ion batteries

contain a lithium salt dissolved in an organic solvent, which contains volatile molecules that can catch fire.

In contrast, various types

of solid-state electrolytes, comprising less or no volatile chemical species, are being developed for both lithium-ion and lithium-metal

Solidion Technology, Inc.

is an advanced battery

technology company focused on the development and commercialization of next-generation battery materials, components, and energy storage

Headquartered in Dallas, Texas, with research and development (R&D) and manufacturing operations in Dayton, Ohio, Solidion

is dedicated to transforming the energy storage landscape by addressing key limitations in current lithium-ion and emerging battery technologies.

The Company specializes in high-performance silicon-rich anode materials,

solid-state battery technology, and fire-retardant electrolytes, aiming to enhance the energy density, safety, and cost-effectiveness

of lithium-ion batteries.

Solidion’s proprietary innovations include graphene-enabled batteries, elastomer-protected electrodes,

quasi-solid and solid-state electrolytes, and biochar-derived anode materials, providing sustainable and scalable solutions for the electric

vehicle (EV), energy storage system (ESS), and consumer electronics markets.

Solidion holds an extensive intellectual property (IP) portfolio with

over 525 active patents (pending and granted) globally, positioning the Company as a leader in silicon anode and solid-state battery technology.

Its innovative silane-free production processes for silicon-based anode materials allow for lower manufacturing costs and improved scalability.

Additionally, its fire-retardant and polymer-based electrolytes enable safer, high-energy-density batteries compatible with existing lithium-ion

cell production infrastructure.

A key milestone in Solidion’s technological

advancements is the successful development of a high-energy cylindrical cell, which achieves an exceptional energy density of 305 Wh/kg,

significantly higher than conventional lithium-ion batteries, which typically range between 240-260 Wh/kg.

This innovation not only enhances

the range and performance of EVs but also underscores Solidion’s ability to deliver cutting-edge solutions for high-energy and high-power

applications.

The Company has established strategic partnerships with leading industry

players, including Giga Solar Materials Corp.

and Bluestar Materials Company, to advance the production and commercialization of silicon

oxide (SiOx) anode materials in the U.S.

These collaborations, along with Solidion’s ongoing engagement with EV original equipment

manufacturers (OEMs) and toll-manufacturing partners, position the Company to accelerate the adoption of its next-generation battery solutions.

On November 14, 2024, we adopted a strategic Bitcoin

allocation policy for our Corporate Treasury.

As part of this strategy, Solidion is committed to leveraging Bitcoin as a long-term store

The Company will allocate excess cash from operations toward Bitcoin purchases, subject to board approval.

Additionally, interest

earnings from cash held in money market accounts will be converted into Bitcoin.

The Company also plans to allocate a portion of future

capital raises to Bitcoin acquisitions, demonstrating a sustained commitment to integrating Bitcoin into its financial strategy.

year 2024, the Company did not identify excess cash from operations for Bitcoin purchases.

Additionally, $13,806 generated in interest

income earnings during fiscal year 2024 have been designated for Bitcoin purchases in fiscal year 2025 as part of the ongoing treasury

The Company did not conduct any capital raise activities between the date of its announcement and the end of the reporting period

and, as a result, did not allocate any proceeds toward Bitcoin purchases.

Looking ahead, during fiscal year 2025, Solidion anticipates

capital raises that will include allocation of a portion of proceeds to Bitcoin acquisitions.

Solidion is committed to advancing battery technology through continuous

R&D efforts, expanding manufacturing capabilities, and optimizing supply chain sustainability.

By integrating cutting-edge materials

and scalable production methods, Solidion aims to deliver high-performance, cost-effective, and environmentally sustainable battery solutions

that address the increasing demand for electrified mobility and renewable energy storage.

Limitations of Current Battery Technology

Li-Ion Batteries Lithium-ion batteries

(LIBs) are pivotal in climate change mitigation as they play a key role in electrifying the transport sector and enabling the integration

of renewables.

They are widely used in portable electronics and electric vehicles due to their high potential for providing efficient

energy storage and environmental sustainability.

NMC (nickel-manganese-cobalt oxides) and LFP (lithium iron phosphate) are common LIB

cathode chemistries for electric vehicle applications.

Graphite is typically used as the battery anode material (BAM).

Despite their importance, current LIB technology

has limitations:

Energy Density The use of graphite anodes restricts the battery’s capacity because graphite

has a low theoretical gravimetric capacity of just 372 mAh g−1.

Silicon (Si) is being

explored as an alternative anode material because it has a higher theoretical specific capacity

of 4,200 mAh g −1 .

However, silicon anodes have issues including volume expansion

during lithium insertion and extraction, unstable solid electrolyte interface (SEI) formation,

low electrical conductivity, and poor lithium-ion diffusivity.

Emissions During Production of Synthetic Graphite Anode Materials The carbon footprint

is often underestimated due to a lack of industrial data and the use of non-representative

process routes in modeling.

A more accurate life cycle inventory reveals a substantially

higher carbon footprint (CF) value of 42.2 t CO 2 eq./t of SG BAM, which is 2 to

10 times greater than previously reported values.

The graphitization process, which accounts

for 46% of the total CF due to high electricity consumption, and the use of graphite crucibles,

responsible for 28% of the CF, contribute most to the carbon footprint.

● Electrolyte

Safety Issues Lithium-ion batteries are susceptible to thermal runaway if abusive conditions

destabilize the electrochemical system.

If certain abusive conditions break the stability

boundaries of the electrochemical system, an LIB is more susceptible to thermal runaway (TR),

leading to fire accidents.

Traditional liquid organic carbonate-based electrolytes are flammable

and can be highly combustible or even explosive when exposed to air.

Lithium plating can

occur in the anode, caused by electrical and thermal abuse, which can lead to dendrite formation

and short circuits.

In contrast, various types of solid-state electrolytes, comprising less

or no volatile chemical species, are being developed for both lithium-ion and lithium-metal

battery types.

Further, solid-state electrolytes, when used as a separator, could significantly reduce or eliminate the lithium dendrite

However, solid-state electrolytes bring along

other types of challenges to a battery designer, including a higher internal impedance (hence, lower power), lower anode or cathode active

material proportion (hence, lower-than-expected energy density), and a higher manufacturing cost.

Further, solid-state electrolytes, when used as a separator, could significantly

reduce or eliminate the lithium dendrite issues.

However, solid-state electrolytes bring

along other types of challenges to a battery designer, including a higher internal impedance

(hence, lower power), lower anode or cathode active material proportion (hence, lower-than-expected

energy density), and a higher manufacturing cost.

The latter challenge is largely a result

of the need to develop a new process and new equipment for producing the solid-state separator and for assembling the required components

into a battery cell.

Solidion has been developing two types of quasi-solid

or hybrid electrolytes, which are expected to have more practical manufacturability-at-scale — “solvent-in-salt”

and “solvent-in-polymer” electrolytes.

Solidion’s effort also includes development of a versatile solid-state electrolyte

Solidion’s electrolytes (FireShield TM ) aim to be process-friendly and compatible with current lithium-ion

cell manufacturing processes.

Specifically, Solidion’s developments are focused to provide a disruptive material process technology

that would enable current lithium-ion cell manufacturing facilities to produce solid-state or quasi-solid electrolyte-based safe lithium

batteries without the need to significantly change existing equipment and facilities.

This implies that the lithium-ion battery industry

can readily enjoy the benefits of solid-state, lithium metal batteries essentially immediately, not having to wait for a decade.

Solidion ’ s battery technology

is targeting to enable significant benefits across battery capacity, life, safety, and fast charging while minimizing cost.

is getting ready to commercialize the graphene-protected lithium metal anode technology, which is essential to the accelerated emergence

of a lithium metal battery industry.

The process-friendly electrolytes are also ready to solidify Solidion ’ s leadership

position in converting the entire lithium battery industry into a quasi-solid and solid-state status.

In the automotive industry, most of the EV makers

are highly interested in silicon- and lithium metal-based anodes for improved EV driving range given the same battery weight or volume.

For instance, GM is experimenting with silicon-rich and lithium metal anodes, solid state and high voltage electrolytes, and dry processing

of electrodes for its next generation of Ultium batteries, due around 2025.

Ford, VW and BMW are also working with battery start-ups

on the development of solid-state lithium metal and Si-based anodes.

Summary of EV Battery Market Demands

As discussed above, a lithium cell supply shortfall

of ~3,700 GWh by 2030 is projected.

Also forecasted is a worldwide graphite supply shortage of 1.4 million tons/year by 2028.

of natural graphite and production of artificial graphite from petroleum or coal sources are generally viewed as not environmentally

The market demands Sustainable sources of graphite.

The EV industry is aware of the potential shortage of critical elements such

as cobalt (Co) and nickel (Ni) that are commonly used in the cathode of a lithium-ion cell;

alternative cathode materials are key to

a sustaining EV battery industry.

The EV market is highly interested in next-gen batteries that exhibit the following features:

Significantly extended

driving range on one battery charge, which would alleviate range anxiety;

Readily available solid-state

Safer battery system without

fire or explosion hazards;

Fast chargeability, with

a goal of achieving a charge to 80% in 15 minutes;

Lower battery cost, with

a goal of less than $100 per kilowatt-hour.

EV batteries are required to meet stringent criteria,

including higher energy density to enable extended driving range, utilization of safer quasi-solid or solid-state electrolytes to enhance

safety, enhanced designs at various levels including material, cell, and module/pack, to facilitate fast charging, and reduced costs

per kilowatt-hour (kWh) for both anode and cathode materials to lower overall battery costs.

Over the course of 15 years, Solidion has

focused its battery research and development endeavors precisely on tackling these challenges head-on.

Our Technologies and Products

Anode active materials

Our products include graphite-based anode materials.

What makes us be different from other manufacturers would be that we will have the flexibility to use raw materials from sustainable

In order to reach the ambitious goal of net zero greenhouse gas emission by 2050, thorough examination of the entire supply

chain line can show insufficiencies.

With the increasing trend of EVs on the road, proliferation of renewable energy – battery

systems, the scrutiny of battery material production impacts on the environment becomes increasingly relevant.

Graphite is currently

indispensable as a battery anode material, dominating the vast majority of the rechargeable battery market due to its long-term cycle

life and low cost of production.

Synthetic graphite is currently produced almost exclusively from petroleum coke and pitch.

proposes to manufacture battery-grade anode materials by introducing renewable and carbon negative biochar produced from waste biomass

as alternative feedstock.

By collecting dead trees, trimming, and other waste biomass, the process of creating biochar sequesters the

elemental carbon and prevents the release of carbon as green-house gas through natural decomposition or wildfires.

Hence the process

of converting waste biomass to biochar has been shown to be carbon neutral or even negative depending on the end use of the biochar.

Given that biochar when mixed into soil, can remain sequestered for scale of thousand years, it will likely remain as sequestered carbon

in a sealed cell until recycled and reused, hence prolonging its sequestered state.

Solidion has developed a process technology that

is expected to allow cost-effective production of anode-grade graphite from this unique sustainable source.

Subject to the Supply and

License Agreement we entered into with G3, Solidion is allowed to manufacture graphene and graphite products for use in our battery-related

products and prohibits resale of the manufactured graphene and graphite products other than after modification to create electrode materials.

Solidion has also developed a cost-effective

graphene/silicon or graphene/SiOx composite anode material that enables a significantly higher energy density (for example, an expected 20-30%

increase in the EV driving range) likely at a reduction in the cell cost in terms of U.S.

dollars per kilowatt hour (“kWh”).

Graphene has proven to be effective in resolving the battery capacity decay problem caused by repeated volume expansion/shrinkage of

Solidion provides silicon-rich or SiOx-rich high-capacity anode materials that exhibit outstanding performance-to-cost ratio

and aims to significantly extend the EV driving range on one battery charge.

Additionally, Tesla suggested on its 2020 “Battery

Day” that the best silicon anode should have low-cost silicon particles with a simple design to reduce material cost, instead of

highly engineered structures such as the Chemical Vapor Deposition process (“CVD”) used by our competitors.

It should also

have elastic, ion-conducting polymer coating that protects these silicon particles, as well as highly elastic binder and some electrode

design used in the anode to maintain structural integrity of the electrode.

We also have patents that cover these desired features of

silicon anode materials.

Safer Batteries

We plan to produce batteries that bridge the

performance and time-to-market gaps.

A drop-in solution is expected to be compatible with today’s manufacturing process and

There are two paths we expect to narrow the gap between today’s battery technology and future solid-state performance:

silicon-rich solid-state lithium-ion cells and solid-state lithium metal batteries, which we expect to be ready for commercialization

in two to three years.

Higher energy density and solid-state electrolytes are the key to the next generation of EV batteries.

batteries must deliver a higher energy density for extended driving range, contain only safe quasi-solid or solid-state electrolytes

for safety, improved designs at the material-, cell-, and module/pack-levels for fast charging, and lower anode and/or cathode costs

per kilowatt-hour for lower battery costs.

Our team’s 15 years of battery research and development efforts have been precisely

directed at addressing these issues.

Briefly speaking, we plan to produce the following batteries:

Solid-state lithium-ion cells featuring a silicon-rich anode and a quasi-solid or polymer-inorganic composite electrolyte (intended

to be launched in 2026).

Generation 2:

lithium metal cells featuring a thin lithium metal anode or an initially lithium metal-free anode (“anode-less”) and

a polymer-inorganic composite electrolyte (expected 2026);

Generation 3:

lithium-sulfur cells featuring a lithium metal anode, a sulfur or conversion-type cathode, and an in situ curable polymer-inorganic

composite electrolyte (expected 2027).

In summary, Solidion has superior technologies

that can be commercialized quickly to solve the EV industry’s most critical issues:

that Solidion technology can significantly lower cost/KWh of today’s batteries, accelerating adoption and enabling sustainable

EVs to quickly replace internal combustion engines.

We also believe that our battery costs can be lower than those of future solid-state

battery-producing competitors.

Time-to-market:

solid-state electrolytes are process-friendly, enabling the “future” solid-state batteries to be produced “now”

using existing/current lithium-ion battery production equipment.

EV OEMs can utilize existing factories to qualify solid-state batteries

in two to three years, rather than waiting for four to seven years.

This is in stark contrast to other solid-state

lithium metal battery companies that will hopefully begin mass production of all solid-state batteries in 2025-30.

The implementation

of the conventional solid state battery technology requires large factory infrastructure rebuilds and will take years to develop.

Solidion will use existing factories, saving time to market, cost and supporting supply chain demand faster.

Driving range:

solid-state lithium batteries and lithium-sulfur batteries potentially can provide up to a 100% increase in range for the same size

battery, eliminating range anxiety.

Our fire/flame-resistant

quasi-solid and solid-state electrolytes make all types of rechargeable lithium battery safer.

Battery charging time:

Reducing the recharge time to less than 15 minutes can help drive EV adoption and reduce charging infrastructure challenges.

Total solutions:

costs and high performance of our batteries will make it economically viable for commercializing battery modules/packs for emergency

power applications.

These power systems will be capable of connecting to grids and solar/wind-based power sources and will be available

for vehicle-to-home (V2H) charging.

Apart from the EV sector, Solidion is strategically

exploring entry into diverse markets such as hand-held devices, energy storage systems (ESS), power tools, and e-bikes.

We expect our

batteries to be poised to capture substantial market shares owing to their distinct advantages, including cost-effectiveness, superior

charging/discharging performance, safety features, extended cycle-life, and exceptional durability.

These attributes are expected to

position us for significant growth and success across multiple sectors.

Summary of Solidion’s products and

stages of development.

Anode active materials:

● Graphite-based

anode materials (with flexibility to choose raw materials including sustainable sources)

are in the final stage of product development.

● Graphene-enhanced

silicon oxide ((SiOx) anode materials) are in the final stage of product development.

anode materials:

Small-scale manufacturing is in progress (currently 15 metric tons per annum

We are planning expansion to >150 MTA by 2026.

2 SEM images of Solidion’s Si-rich

anode materials.

Our Competitive Strengths

In the automotive industry, the price of a vehicle

ultimately dictates the final decision of a potential customer, and the emerging EV industry is no exception.

EV industry experts have all agreed that EVs will become competitive against the internal combustion engine (ICE) vehicles when the battery

cost reaches a threshold of $100/KWh given comparable performance/safety characteristics.

Si-rich anode materials:

The production

of Solidion’s Si-rich anode materials begins with a significantly lower starting material and follows a highly scalable, low-cost

process (Fig.

This is in stark contrast to competitors’ use of an expensive, toxic, and explosive gaseous silane and the high-cost

According to Tesla’s analysis on its Battery Day in 2020, the CVD Si anode price is estimated to be > $100/KWh,

while Solidion’s product is expected to be lower than $6/kWh, which is approximately the price of currently used graphite anode

Solidion is believed to be capable of cost-effectively producing the high Si content anode materials (graphene/elastomer encapsulated

Si particles, first-cycle efficiency up to 94% and specific capacity of 2,000-3,200 mAh/g) that would meet the requirements of increased

energy density and lower cost for next-gen EV batteries.

Process-friendly quasi-solid and solid-state

of the need to develop a new process and new equipment for producing the solid-state separator

and for assembling the required components into a battery cell.

Our Technology

● Graphene or elastomer enhanced silicon and

Solidion is leading the development

of low-cost, high-performance silicon-rich (Si-rich) anode materials, pioneering multiple approaches to enhance the efficiency, scalability,

and sustainability of next-generation lithium-ion batteries.

One of Solidion’s most transformative innovations is its elastomer

protection technology, which utilizes a flexible polymer to encapsulate silicon particles and protect the entire electrode.

effectively addresses the mechanical stresses caused by silicon expansion during charge-discharge cycles, significantly improving battery

longevity and stability.

Unlike common silicon anode production methods that rely on silane gas and chemical vapor deposition (CVD) processes,

Solidion’s approach is silane-free and CVD-free, utilizing low-cost metallurgical-grade or reclaimed silicon as a feedstock.

cost-effective and environmentally friendly method makes silicon anode technology more viable for mass adoption of suitable applications.

Solidion has also pioneered a method to produce high-capacity silicon

anodes via CVD but without the use of toxic and explosive silane gas, thereby enhancing both the safety and sustainability of battery

manufacturing.

This breakthrough is part of Solidion’s extensive intellectual property portfolio, which encompasses over 525 active patents.

By eliminating the need for silane gas in silicon anode production, the overall cost is expected to decrease, making the product more

competitive, market-friendly, and potentially preventing the painful silane supply chain issue.

These advancements are set to benefit

a wide range of applications, including energy storage systems and electric vehicles across land, air, and sea.

Beyond silicon anode innovation,

Solidion is also advancing its graphene technology platform to enhance the electrical conductivity of Si-based anode materials.

graphene into Si/C composite anodes has demonstrated a 17% increase in electrical conductivity, addressing the common challenge of poor

power capability in Si/C or SiOx anode materials.

This enhancement is achieved with minimal additional cost, making it a practical and

scalable solution for improving battery performance.

● Biochar-based

anode to reduce CO 2 emissions

is pioneering the introduction of biochar-derived anode materials to the battery industry, offering a sustainable solution to reduce

CO₂ emissions while enhancing the battery industry value chain.

Unlike conventional graphite anodes, which rely on petroleum coke

and contribute significantly to carbon emissions, biochar provides an eco-friendly alternative.

By utilizing biochar as a feedstock,

atmospheric CO₂ can be partially offset, establishing a closed-loop carbon cycle.

Additionally, CO₂ emissions per unit weight

of product are projected to be 30% lower compared to petroleum-derived graphite.

Solidion has successfully demonstrated a 200 mAh battery

cell incorporating an NMC cathode and biochar-derived anode materials, achieving approximately 1,000 cycles at a 0.3C charge/discharge

While further optimization is required to enhance electrochemical performance and scalability, biochar-based anodes represent a

low-carbon solution for next-generation lithium-ion batteries, accelerating the transition toward more sustainable energy storage technologies.

● Electrolytes

Solidion has been developing a truly disruptive solid-state platform technology that can help solidify the battery

safety of the EV industry.

Our key electrolyte technologies may be summarized as follows:

(a) we invented elastomeric solid electrolytes;

(b) we have highly significant IP in in-situ curing or in-situ solidification of polymer electrolytes;

invented quasi-solid electrolytes;

(d) we developed thermally stable and flame-retardant polymer and polymer/inorganic hybrid electrolytes;

(e) our electrolytes are compatible with current Li-ion infrastructure and processes;

and (f) We have versatile and easy-to-process

solid-state electrolytes for safe lithium-ion and lithium-metal batteries.

As summarized in Fig.

3 below, we have earliest IP in quasi-solid

electrolytes (solvent-in-salt and solvent-in-polymer), and strong IP position in solid polymer electrolytes ( in situ polymerization and

solid elastomeric electrolytes), and polymer composite electrolytes (elastic, flame-retardant and high-temperature polymer electrolytes).

Fig.3 Types of electrolytes for Li-ion and Li

metal batteries.

Lithium metal cells:

Lithium metal

anode protection is key to the commercialization of all-solid-state or liquid-state lithium metal batteries (any battery that makes use

lithium metal as the anode active material;

hence, higher energy density).

We believe that Solidion has the most significant IP in the

area of lithium metal anode protection (50+ U.S.

patents and many foreign patents).

Our graphene- and/or polymer-enabled lithium

metal protection technologies aim to overcome technical barriers (for example, lithium dendrites, large interfacial impedance, etc.)

that have thus far impeded commercialization of solid-state lithium metal batteries.

We believe that our graphene/polymer-based Li metal

protection layers are key enabling technologies for all types of solid-state lithium metal batteries.

For instance, Solidion’s

anode-protecting layers and elastomeric solid electrolytes accelerate commercialization of ultra-thin lithium (Li-light) anode or anodeless

batteries, both featuring reduced cell weight and volume and thus higher energy densities.

Lithium-sulfur and lithium-selenium cells:

Solidion researchers are pioneers in the field of graphene-enabled Li-S and Li-Se batteries, having 50+ U.S.

numerous foreign patents in this subject.

In particular, Solidion has developed nanostructured graphene-sulfur cathode that has (a) exceptionally

high sulfur content and utilization efficiency;

(b) high specific capacity (up to 1,000 mAh/g);

capable of up to 500 Wh/kg;

over 2x that of traditional lithium-ion cells);

and (d) minimal shuttle effect, enabling good cycle-life.

Beyond Lithium Chemistries:

has also developed impressive technologies in other types of batteries.

Solidion is a pioneer in the field of aluminum-ion cells, having

quite likely the most significant IP in this topic.

Solidion also has good IP in the sodium-ion cells.

In summary, Solidion is the inventor of many

key enabling battery technologies, including (as examples) graphene-enabled batteries, elastic polymer-protected batteries, quasi-solid

electrolytes, elastomeric solid-state electrolytes, flame-retardant polymer composite electrolytes, graphene-enabled bipolar electrodes

and batteries, etc.

This massive IP portfolio provides EV and energy storage systems (ESS) industries with several disruptive battery

technologies, for example, (a) Si-rich anode having a high performance/cost ratio, (b) high-capacity sulfur cathode materials

(Co-, Ni-, and Mn-free), (c) highly process-friendly solid-state electrolytes, (d) protected lithium metal anode, essential

to the success of future lithium metal batteries, (e) fast chargeability, (f) aluminum-ion cells, and (g) sodium-ion cells.

We believe that Solidion’s battery products

have the following features or advantages:

Higher energy density.

Projected 20% to 80% increase in EV driving range to eliminate range anxiety.

Solid-state performance.

With our target of facilitating the conversion of lithium-ion battery facilities into solid-state lithium battery production

lines we expect Solidion solid-state batteries to become available in two to three years.

and solid-state electrolytes provide effective solutions to battery fire and explosion issues.

Lower cost per kilowatt-hour.

We believe our technology could provide a cost advantage as compared to our competitors.

We expect our high-capacity

anodes, cathodes, electrolyte technology and unique module/pack-level can result in energy density increases, lower pack system costs,

safety improvements, reduced cooling provisions, eliminated or reduced electrochemical formation, and the ability to use current

lithium-ion cell production equipment,

Faster charging.

We are developing anode materials designs, innovative cell configurations, and both passive and active thermal management

at both cell- and pack-levels for improved charging speeds.

Performance Improvements:

We anticipate

that our Generation 2 all-solid-state lithium metal cells (expected 2026) and Generation 3 all-solid-state lithium-sulfur cells (expected

2027) would deliver significant performance improvements as compared to current conventional Li-ion cells (Fig.

Pack volume in watt

hours per liter (“Wh/L”) is expected to be 480 Wh/L for our 350 liter Generation 2 and 3 products as compared to 250 Wh/L

for current 350 liter Li-ion products.

Pack energy, assuming the same pack volume, is expected to be 165 kWh for our Generation 2 and

3 products as compared to 85 kWh for current Li-ion products.

Range is expected to be 620 miles for our Generation 2 and 3 products as

compared to 320 miles for current Li-ion products.

Charge time is expected to be less than 15 minutes to increase from a 0% to 80% charge

for our Generation 2 and 3 products as compared to greater than 30 minutes to increase from 5% to 80% charge for current Li-ion products.

Power is expected to be 650 kW for our Generation 2 and 3 products as compared to 400 kW for current Li-ion products.

Safety is expected

to be much improved through the use of our fire-resistant electrolyte technology in our Generation 2 and 3 products as compared to organic

electrolyte for current Li-ion products.

Fig.4 Comparison of different solid-state battery

Manufacturing and Supply

Solidion plans to become a supplier of all-solid-state

(flame-retardant polymer or hybrid electrolytes for solid-state batteries)

has developed a range of fire-retardant, quasi-solid, and hybrid solid electrolytes designed for scalability and compatibility with existing

lithium-ion battery manufacturing processes and facilities.

Our solvent-in-salt and solvent-in-polymer electrolytes address the common

limitations of conventional fire-retardant formulations, such as high viscosity, poor wettability, and low ionic conductivity, which

can hinder electrode infiltration, increase internal resistance, and reduce power capability.

Compatibility issues with electrodes and

separators, along with narrow electrochemical stability windows, have traditionally limited the adoption of fire-retardant electrolytes

in high-voltage lithium-ion batteries.

Solidion’s FireShield™ electrolytes

overcome these challenges with a process-friendly formulation that enables manufacturers to integrate solid-state or quasi-solid electrolyte-based

lithium batteries without requiring significant changes to existing production lines.

Unlike conventional fire-retardant electrolytes,

which typically have a viscosity exceeding 47 mPa●s, Solidion’s formulations achieve approximately 3.7 mPa●s, an order

of magnitude lower, ensuring efficient electrode wetting.

Additionally, while traditional fire-retardant electrolytes exhibit ionic conductivity

as low as 0.63 mS/cm, Solidion’s electrolytes demonstrate 1.74–1.98 mS/cm, significantly enhancing charge transport and overall

battery performance.

These electrolytes have been successfully

tested in 100 mAh pouch cells utilizing NMC811 cathodes and SiOx/graphite anodes, delivering 800–900 cycles, proving their compatibility

and long-term stability.

Additionally, Solidion has developed small prototype cells with quasi-solid electrolytes, derived from our fire-retardant

formulations.

These prototype cells demonstrate rate capabilities comparable to conventional carbonate-based electrolytes, while offering

superior safety performance, significantly reducing thermal runaway risks.

Solidion’s next-generation battery

technology is poised to deliver higher capacity, longer cycle life, enhanced safety, and fast-charging capability—all while minimizing

With graphene- and elastomer-protected lithium-metal anodes, Solidion is driving the transition toward a quasi-solid and solid-state

battery industry, solidifying its leadership in safer, more efficient, and scalable energy storage solutions.

Our Competitive Strengths

Differentiated Battery Technology

Solidion stands apart in next-generation battery technology by offering silicon anodes, biochar-based anodes, and innovative electrolytes

that deliver higher energy density, lower costs, and greater sustainability than conventional solutions.

Unlike most silicon anode manufacturers

that rely on silane gas and chemical vapor deposition (CVD), Solidion has developed silane-free, CVD-free production methods using low-cost

metallurgical-grade or reclaimed silicon, reducing both manufacturing costs and supply chain dependency.

Our elastomer protection technology

is a breakthrough in mitigating negative effects resulted from silicon expansion—a challenge that has hindered widespread adoption

of silicon anodes.

Solidion has also pioneered a silane-free CVD process to produce Si/C at a lower cost per our projection.

Additionally,

our graphene-enhanced Si-based anodes provide a 17% increase in electrical conductivity, a key differentiator that improves power output

with minimal cost, addressing a common limitation in Si/C and SiOx composite anodes used by other manufacturers.

Beyond silicon anodes, Solidion is among the few

companies pioneering biochar-derived anodes, providing a 30% lower CO₂ footprint compared to petroleum-based graphite, aligning

with the industry’s push for low-carbon battery materials.

While competitors focus on graphite from fossil-fuel sources, Solidion’s

biochar-based approach establishes a closed-loop carbon cycle, reducing environmental impact while maintaining high electrochemical performance.

Our 200 mAh prototype cell, integrating biochar anodes and an NMC cathode, has achieved 1,000 cycles at 0.3C, demonstrating its viability

as a scalable, sustainable alternative to conventional anodes.

In battery safety and manufacturability, Solidion

differentiates itself with its FireShield™ electrolyte technology, including solvent-in-salt and solvent-in-polymer electrolytes,

designed for seamless integration into existing lithium-ion battery manufacturing lines.

While many competitors require entirely new processes

and equipment for solid-state battery production, Solidion’s electrolytes enable a cost-effective transition to quasi-solid and

solid-state batteries without major infrastructure changes.

Additionally, our graphene- and elastomer-protected lithium-metal anode technology

is a key enabler for the widespread commercialization of lithium-metal batteries, offering both higher energy density and improved cycle

By integrating breakthrough materials with scalable, production-friendly solutions, Solidion is setting a new industry standard,

driving the battery sector toward safer, longer-lasting, and more environmentally responsible energy storage technologies.

Strong intellectual property and expertise

in silicon, graphite, and safe electrolyte domains Solidion Technology boasts a robust IP portfolio of over 525 active

patents, crucial for next-generation EV batteries.

As a pioneer in disruptive battery innovations, including graphene-enabled, polymer-protected,

and solid-state technologies, Solidion holds over 100 key U.S.

patents for enhanced silicon materials, 35+ for fire-resistant electrolytes,

and 70+ for advanced solid-state and lithium metal batteries.

This IP enables cutting-edge solutions like high-performance silicon anodes,

cobalt-free cathodes, and protected lithium metal anodes.

Solidion Technology has a robust and expansive intellectual property

(IP) portfolio, comprising over 525 active and high-value patents, many of which are central to the next generation of electric vehicle

(EV) battery technologies.

The Company is a pioneer in disruptive battery innovations, including graphene-enabled batteries, elastic polymer-protected

batteries, quasi-solid and solid-state electrolytes, as well as advanced hybrid electrolytes.

Solidion’s portfolio includes over 100 key

patents related to graphene- and polymer-enhanced silicon-based materials, more than 35 patents for fire-resistant electrolytes,

and over 70 patents focused on next-generation solid-state and lithium metal battery technologies.

This vast IP foundation provides the

EV industry with cutting-edge solutions, such as silicon-rich anodes with superior performance-to-cost ratios, cobalt-free sulfur cathodes,

process-friendly solid-state electrolytes, and protected lithium metal anodes.

Additionally, Solidion’s innovations extend to advanced

current collectors that enhance battery cycle life and performance under extreme conditions.

With patent expirations ranging from 2028

to 2040, Solidion’s IP offers a long-term competitive advantage, with most of the patents owned outright by the Company, ensuring strategic

flexibility and ongoing leadership in the battery technology sector.

Strategic Partnerships In November

2024, Solidion entered into strategic partnership with Taiwan-based Giga Solar Materials Corp.

and Bluestar Materials Company, marking

a significant step toward the advancement of SiOx anode materials production in the United States.

This collaboration aims to develop

high-quality SiOx anode solutions for lithium-ion batteries.

With Bluestar’s design expertise, Giga Solar’s manufacturing

experience, and Solidion’s cutting-edge technologies, the partnership is set to strengthen North America’s lithium battery materials

supply chain, meeting the increasing demand for electric vehicle (EV) batteries and energy storage systems.

The alliance leverages Solidion’s expansive

patent portfolio and R&D capabilities to optimize SiOx anode production, which offers a fivefold increase in specific capacity over

traditional graphite.

This innovation is key to enhancing battery energy density, thus improving EV range and durability.

Giga Solar, with a combined 100 Metric Tons per Annum (MTA) capacity in Taiwan, are exploring U.S.-based manufacturing opportunities to

further their market share in the rapidly expanding EV and energy storage sectors.

Anode Materials Our product portfolio includes graphite-based

anode materials, distinguished by our commitment to utilizing raw materials from sustainable sources.

As part of our efforts to contribute

to the goal of net-zero greenhouse gas emissions by 2050, we are scrutinizing our entire supply chain to identify opportunities for reducing

environmental impacts.

Graphite, a critical component in rechargeable batteries due to its longevity and cost-efficiency, is traditionally

derived from petroleum coke and pitch.

Solidion’s innovative approach introduces biochar produced from waste biomass as an alternative

This sustainable process not only sequesters carbon but may also result in carbon-negative production.

By leveraging biochar,

Solidion aims to produce anode-grade graphite with exceptional performance.

By the end of 2024, Solidion’s anode materials containing

biochar-derived materials have achieved a capacity of over 340 mAh/g and comparable cycle life to conventional graphite anodes, marking

a significant step towards more environmentally responsible battery manufacturing.

Solidion has also developed a series of silicon and

SiOx anode materials that enable a significantly higher energy density (for example, an expected 20-30% increase in the EV driving range)

likely at a reduction in the cell cost in terms of U.S.

dollars per kilowatt hour (“kWh”) when production in scale occurs.

The specific capacity of these products range from 1,300 to 2,800 mAh/g aiming to suit different applications including EV, energy storage

stations, drones, and consumer electronics.

Battery Cells To rigorously validate the performance

of its innovative anode materials, Solidion is actively engaged in the development and testing of a diverse portfolio of battery cells.

By the close of 2024, Solidion, in collaboration with strategic partners, has successfully constructed and evaluated over three distinct

types of cylindrical cells, each featuring either our advanced silicon (Si) or graphite-based anodes.

These cells showcase a wide range

of capabilities, with capacities spanning from 4.6 to an impressive 5.5Ah.

Notably, our high-energy 5.5Ah 21700 cylindrical cell represents a

significant leap forward in battery technology.

This cell not only achieves an exceptional energy density of 305 Wh/kg, surpassing the

typical 240-260 Wh/kg offered by established Asian manufacturers in the same high-energy category, but also delivers superior power performance.

It boasts a continuous charging and discharging capability exceeding 2C, a substantial improvement over the performance less than 1C typically

seen in competitor products.

This combination of high energy density and robust power handling makes our 5.5Ah cell ideally suited for

applications demanding both sustained energy delivery and moderate to high power output, such as advanced electric vehicles and high-performance

portable electronics.

Furthermore, Solidion is actively developing cell variants tailored

for applications requiring even higher power capabilities.

These cells have already demonstrated impressive fast-charging capabilities,

exceeding 3C, enabling rapid replenishment of energy and minimizing downtime.

This focus on high-power cells underscores our commitment

to addressing the diverse needs of the evolving energy storage market.

Beyond anode advancements, Solidion is also pioneering the development

of next-generation electrolytes.

As previously mentioned, we have successfully formulated fire-retardant and quasi-solid electrolytes,

demonstrating their performance through the construction of small prototype cells.

These electrolytes represent a significant step towards

enhancing battery safety, a critical consideration in today’s demanding applications.

Looking ahead, Solidion intends to scale up production

of these electrolyte-based cells, manufacturing larger format cells in common practical sizes.

This initiative will not only validate

the performance of our advanced electrolytes in real-world scenarios but also pave the way for the development of safer and more reliable

energy storage solutions.

By integrating our innovative anode materials with these advanced electrolytes, Solidion is poised to deliver

a new generation of high-performance, safe, and sustainable batteries.

The development of larger cells with advanced electrolytes is scheduled

to conclude in 2025.

Our Growth Strategy

Battery Development for Customers Solidion’s core strategy

revolves around the meticulous design and rigorous testing of advanced battery cells, tailored to meet the specific needs of our customers

and the broader market.

We are dedicated to developing a diverse array of cell types, encompassing both cylindrical and pouch formats,

with varying dimensions to accommodate a wide range of applications.

Our approach is deeply rooted in materials innovation, leveraging

our proprietary silicon and graphite-based anodes, alongside our fire-retardant and quasi-solid electrolytes.

This allows us to precisely

engineer cell performance characteristics, focusing on achieving optimal energy density, power output, and safety.

Each cell design undergoes

exhaustive testing protocols, including cycle life analysis, rate capability assessments, and safety evaluations, to ensure it meets the

highest standards of performance and reliability.

We are committed to pushing the boundaries of battery technology, exploring novel electrode

configurations and electrolyte formulations to unlock new levels of performance.

Through close collaboration with our customers, we meticulously

refine our designs, incorporating feedback and tailoring solutions to address unique application requirements.

Whether a client seeks

a high-energy cell for an extended runtime, a high-power cell for rapid discharge, or a cell with enhanced safety features, Solidion’s

dedicated team of engineers and scientists is focused on delivering innovative and reliable battery solutions.

Leverage existing global toll manufacturing capacity to produce

batteries Solidion’s growth strategy is strategically designed to capitalize on existing global toll manufacturing capabilities,

enabling us to efficiently and cost-effectively meet the burgeoning demand for our advanced battery cells.

Recognizing the critical need

to provide customers with sample cells in larger, application-relevant formats, we are leveraging partnerships with established manufacturing

facilities worldwide, including those within the United States.

While Solidion’s current infrastructure for cell fabrication focuses on

research and development, these collaborative relationships allow us to rapidly scale production and deliver customized cell prototypes

without significant capital expenditure.

By partnering with experienced toll manufacturers, we gain access to established production lines,

quality control systems, and logistical expertise, ensuring consistent product quality and timely delivery.

This approach not only facilitates

the efficient production of sample cells for customer evaluation but also provides a robust pathway for Solidion to explore and penetrate

the broader battery cell market.

As we receive customer orders, we will continue to collaborate with our global network of toll manufacturing

partners, ensuring seamless and scalable production.

This strategic approach allows us to embrace the inherent low-cost advantages of

toll manufacturing at mass-production scales, optimizing our operational efficiency and enabling us to offer competitive pricing.

this model allows Solidion to remain agile, adapting quickly to market fluctuations and customer demands without the constraints of owning

and operating large-scale manufacturing facilities.

By fostering strong relationships with our toll manufacturing partners, we are building

a resilient and adaptable supply chain, positioning Solidion for sustained growth and success in the rapidly evolving battery industry.

Partnership Development and Expansion Solidion remains committed

to strengthening its strategic partnerships with Giga Solar and Bluestar to advance the development and commercialization of SiOx anode

materials and innovative production processes.

By leveraging the combined expertise and resources of these partnerships, Solidion aims

to optimize manufacturing efficiency and accelerate market adoption.

Additionally, the Company intends to collaborate closely with EV

OEMs and toll-manufacturing partners to develop and scale the production of advanced battery materials and cells.

The long-term objective

is to integrate these next-generation energy storage solutions into EVs, drones, and other high-performance applications, supporting

the broader transition to sustainable transportation and energy systems.

Advancing Battery Technologies Solidion is dedicated

to advancing battery technologies to maintain its leadership in the dynamic energy storage sector.

We understand that significant progress

demands a comprehensive strategy, encompassing both material and cell-level innovations.

Our persistent research efforts concentrate on

refining and optimizing essential components, including anodes, cathodes, and electrolytes, to create integrated systems that achieve

exceptional performance.

We strive to seamlessly incorporate these advancements into battery cells designed to meet the diverse and evolving

needs of our customers across various applications.

Utilizing our extensive expertise, Solidion is committed to developing future products

that not only feature cutting-edge technology but also emphasize manufacturability, ensuring efficient scalability and cost-effectiveness.

To reinforce our position as a technological pioneer, we sustain a substantial investment in research and development, focusing on pivotal

areas such as cell chemistry and architecture, next-generation battery materials, and advanced manufacturing techniques.

This continuous

investment enables us to expand and strengthen our intellectual property portfolio, securing our ability to deliver transformative battery

solutions that address the energy storage demands of the future.

Expanding our end markets and applications Solidion’s

strategy for growth includes a deliberate expansion of our end markets and applications.

While our core focus remains on strengthening

our battery material production capabilities, we recognize the significant opportunity presented by the cell business.

By leveraging

our established partnerships with global toll manufacturers, we plan to integrate our advanced material products and technologies into

a diverse range of battery cells, tailored to meet the specific requirements of various end users.

This strategic move allows us to extend

our reach beyond material supply and directly address the needs of growing markets.

Our target applications include, but are not limited

to, EV vehicles, where foreign manufacturers are seeking U.S.

partnerships to mitigate potential tariffs, production of silicon-based

alloys, where domestic sourcing requirements demand U.S.

entity control, consumer electronics, where demand for high-performance, compact

batteries is increasing, residential energy storage systems, which require reliable and long-lasting solutions, and the rapidly expanding

drone market, where lightweight, high-energy-density cells are crucial.

By diversifying our offerings and entering these dynamic sectors,

Solidion aims to solidify its position as a comprehensive provider of innovative energy storage solutions.

Our Research and Development

Solidion is continuously advancing energy storage technologies, refining

innovations for commercial applications while expanding research and development initiatives.

Our focus is on enhancing key performance

characteristics and broadening the applications of our battery technologies, including anode materials, electrolytes, and next-generation

energy storage solutions beyond lithium-ion.

Our ongoing R&D efforts include:

Advancing Material Structures and Manufacturing Processes:

We are refining biochar-based, silicon-based, and SiOx-based anode materials by optimizing their structure and composition.

Efforts include

surface modifications, such as graphene and elastomer coatings, and production process enhancements.

A key focus is the development of

a silane-free production process for Si/C materials, which has the potential to significantly reduce manufacturing costs.

Enhancing Battery Life:

We are working on a range of

electrolyte additives and binders designed to improve the cycle life of silicon-based battery cells while maintaining critical performance

characteristics, such as energy density.

Increasing Energy Density and Power Capability:

actively exploring alternative cell designs and cathode materials to enhance energy storage capacity and power output.

Developing Larger Cell Form Factors:

Currently, we produce

5Ah 21700 cylindrical cells and pouch cells up to approximately 1Ah.

As we expand our customer base, we are developing larger-format batteries

to support broader energy storage applications, including electric vehicles, drones, and consumer electronics.

We also are working on

building larger cells that incorporate our fire-retardant and quasi-solid electrolytes to provide safer battery cells to the market.

Solidion plans to become a supplier of solid-state

cells (for the EV, energy storage systems and portable electronics markets) and certain battery components/materials (for example,

graphite-, Si oxide-, and Si-rich anode materials and electrolytes) to select customers or strategic partners.

We have a sustainable graphite anode material

manufacturing plan.

We plan to produce biomass-derived graphite anode materials, subject to the Supply and License Agreement, which allows

Solidion to manufacture graphene and graphite products for use in our battery-related products and prohibits resale of the manufactured

graphene and graphite products other than after modification to create electrode materials.

During Phase 1, which we expect will

last three years, we intend to source proper biochar products from biochar suppliers and convert these products into graphite anode

materials using a proprietary process.

After 3 years, we intend to implement a significantly lower temperature process for reduced

Advantages of biochar as a raw material include sustainability and lower material cost compared to production of graphite from

petroleum or coal sources.

In addition, heat treatment equipment for graphite production is available from multiple vendors located in

many counties or regions.

Our business is not raw-material-limited.

an example, 100,000 tons of graphite requires about 400,000 tons of biomass, which is just 0.015% of the total available source of 2,700 million

example, 100,000 tons of graphite requires about 400,000 tons of biomass, which is just 0.015% of the total available source of 2,700 million

tons available per year.

4 unchanged sentences

palm kernel shell.

We expect to scale up our silicon anode material

production capacity from 15 MT per year, currently in Dayton, Ohio, to greater than 150 MT per year by 2026.

We plan to begin with the toll manufacturing/joint

4 unchanged sentences

also supply both graphite-dominant and silicon-rich anode materials to customers that choose to use liquid electrolytes in their lithium-ion

“Made in America” guidance.

On March 31, 2023, the U.S.

Treasury Department and the IRS released proposed guidance on the new clean vehicle provisions of

the Inflation Reduction Act.

To be eligible for a $7,500 credit, clean vehicles must meet sourcing requirements for both the critical

minerals and battery components contained in the vehicle.

Vehicles that meet one of the two requirements are eligible for a $3,750 credit.

To meet the critical mineral requirement and be eligible for a $3,750 credit, an applicable percentage that increases each year of the

value of the critical minerals contained in the battery must be extracted or processed in the United States or a country with which the

United States has a free trade agreement, or be recycled in North America.

Critical minerals in the EV battery must be extracted or processed

in the U.S., countries with which the U.S.

has a free trade agreement or have been recycled in North America.

By the end of 2026, the

applicable percentage will be 80% for the critical mineral requirement.

To meet the battery component requirement and

be eligible for a $3,750 credit, the applicable percentage of the value of the battery components must be manufactured or assembled in

North America — as mandated by the Inflation Reduction Act.

By the end of 2026, the applicable percentage will be 80%

for the battery component requirement, and by the end of 2028, 100% of battery components must be manufactured and assembled in North

America by 2028 for a vehicle to be eligible for the clean vehicle tax credit.

In addition, beginning in 2024, an eligible clean

vehicle may not contain any battery components that are manufactured by a foreign entity of concern and beginning in 2025 an eligible

clean vehicle may not contain any critical minerals that were extracted, processed, or recycled by a foreign entity of concern.

We expect that by the end of 2027, 80% of battery

materials and components made by Solidion will comply with the critical mineral and battery component requirements.

We believe anode

materials for Lithium-ion cells would be domestically produced from renewable and recycled feedstocks without extraction or mining, and

that sulfur cathode materials will lessen the need for imported manganese, cobalt and nickel.

We further believe that Solidion’s

local sourcing and manufacturing ability make it an ideal candidate for government grants and loans.

However, there can be no assurance

that we will be able to scale up our production as anticipated in order to supply our battery technology to vehicles that may be eligible

for clean vehicle tax credits.

Summary of research, design, development,

manufacturing and commercialization.

Manufacturing/Commercialization

Pre-Production

B and C samples to meet technical expectations.

and evaluate equipment for pilot plant

samples to customers

location survey

● Engineering

samples to customers

Material Obstacle

With adequate resources,

we do not anticipate any material technical obstacles.

The lead time of certain

equipment (for example, battery cell production equipment) is excessively long (9 – 18 months).

We are interacting

proactively with potential suppliers in multiple regions in the hope of shortening the waiting period.

lead time issue.

production equipment (for example, SiOx production) must be custom-designed.

We have started working with selected engineering design

companies and equipment manufacturers to overcome this engineering issue.

Plans for production.

Synthetic graphite production — For phase

1, we expect to build a processing plant with production capacity of 10,000 MT by 2026, with a projected capital expenditure of $100-200

million and resulting in revenue of $90 – $100 million.

We would plan to expand annual capacity to 180,000 MT by 2032.

Anode products — Our Dayton, Ohio, anode

materials production line has a current capacity of 15 MT per year, and we expect to scale it up to a capacity of >150 MT per year

Battery products — We expect to launch

Gen1 and Gen2 cells by 2026 and Gen3 by 2027.

Intellectual Property

Solidion has a portfolio of over 520 patents.

Solidion has a portfolio of over 525 high-value

active patents.

This portfolio contains many key patents for next generation EV batteries.

Solidion is the inventor of graphene-enabled batteries, elastic

polymer-protected batteries, quasi-solid electrolytes, elastomeric solid-state electrolytes, advanced polymer/inorganic hybrid electrolytes,

and numerous other disruptive battery technologies.

This massive intellectual portfolio provides the EV industry with what we believe

to be several key enabling battery technologies, such as silicon-rich anode having the highest performance/cost ratio, the highest-capacity

sulfur cathode materials (free of cobalt, nickel and manganese), the most process-friendly solid-state electrolytes, protected lithium

metal anode, fast chargeability, aluminum-ion cells and sodium-ion cells.

Solidion is the inventor of graphene-enabled

batteries, elastic polymer-protected batteries, quasi-solid electrolytes, elastomeric solid-state electrolytes, advanced polymer/inorganic

hybrid electrolytes, and numerous other disruptive battery technologies.

This massive intellectual portfolio provides the EV industry

with what we believe to be several key enabling battery technologies, such as silicon-rich anode having the highest performance/cost ratio,

the highest-capacity sulfur cathode materials (free of cobalt, nickel and manganese), the most process-friendly solid-state electrolytes,

protected lithium metal anode, fast chargeability, aluminum-ion cells and sodium-ion cells.

Solidion holds more than 100 key U.S.

patents on graphene-

or polymer-enhanced silicon-based materials.

on graphene- or polymer-enhanced silicon-based materials.

It holds more than 35 key U.S.

patents on fire-resistant electrolytes for lithium batteries.

patents on fire-resistant electrolytes for

lithium batteries.

It holds more than 70 U.S.

patents on key technologies for next-generation all-solid state or lithium metal batteries.

It also holds

advanced current collector patents;

these technologies are capable of extending cycle life and improving operating temperatures and voltages.

It also holds advanced current collector patents;

these technologies are capable of extending cycle life and improving operating temperatures

and voltages.

The year of expiration of these key U.S.

patents generally ranges from as early as 2028 to as late as 2040.

Most of the intellectual

property to be utilized by Solidion is intellectual property that is owned by Solidion (having been transferred from G3 to Solidion via

the Patent Assignment, dated as of February 8, 2023 (the “Patent Assignment”)).

Solidion licenses a relatively small number

of patents relating to graphene and graphite production from G3 pursuant to the Supply and License Agreement, under which there are no

significant limitations.

intellectual property to be utilized by Solidion is intellectual property that is owned by Solidion (having been transferred from G3 to

Solidion via the Patent Assignment, dated as of February 8, 2023 (the “Patent Assignment”)).

Solidion licenses a relatively

small number of patents relating to graphene and graphite production from G3 pursuant to the Supply and License Agreement, under which

there are no significant limitations.

These patent rights are licensed on an irrevocable, non-exclusive, royalty-free basis.

We believe we have advanced IP in process-friendly

and cost-effective polymer/inorganic hybrid solid electrolytes that are fire/flame-resistant, which effectively overcomes the fire/explosion

issues commonly associated with liquid electrolytes.

KnowMade has analyzed more than 14,400 patent filings related to “solid-state

Li-ion batteries with inorganic solid electrolytes.” Solidion battery IP is one of only two U.S.

companies recognized in its

list of the top 31 companies (Fig.

5 Solidion is recognized as a leader in solid-state

battery technologies.

Another KnowMade report (Fig.

6) has identified

Solidion as the U.S.

leader in the Si anode technology.

In the USA, Solidion is No.

1 (having 131 patent families in the

Si anode), followed by GM (90), Enevate (77), and Amprius (71).

Further, Honeycomb/G3 is ranked No.

9 in the entire battery industry,

after 8 major Li-ion battery cell producers;

however, Solidion is No.

1 among all the battery start-ups in the world.

6 Solidion is recognized as a leader in “Silicon

Anode for Li-ion Batteries.”

Our high silicon-content anode provides a drop-in

solution to enhancing the energy density of a lithium-ion battery.

We have the earliest and most significant IP on elastic polymer-protected

silicon particles, which is the most cost-effective silicon anode as identified by Tesla on its “Battery Day” in 2020.

are uniquely positioned to commercialize high silicon content-based all-solid-state batteries.

We believe a partnership with Honeycomb

will help solidify an EV maker’s success as the worldwide leader in safe EVs for decades to come.

We are recognized as one of the Global Top 100

Innovators (Fig.

7), a testimony to not only the quantity but also the quality of our IP.

In April 2022, LexisNexis published

“Innovation Momentum 2022:

The Global Top 100,” a comprehensive IP report that recognized global technology companies with

exceptional technological relevance for the future, market coverage, and citation index.

We were one of 12 companies recognized in the

report under the Chemicals and Materials industry sector, and one of only 2 such US-based companies that received the honor.

Other innovators

listed in this sector are prominent EV battery companies such as LG Chem, Samsung SDI, and CATL.

We are the only battery start-up listed

among these top 100 innovators.

7 Third party validation of Solidion’s

The strong IP portfolio enables Solidion to become a market and technology

5 unchanged sentences

We primarily compete

with other silicon anode materials start-ups, such as Sila Nanotechnologies, Amprius Technologies and Group 14, which are all highly

promising battery companies.

Our competitors produce silicon anode materials

via CVD, which is believed to be expensive and challenging to scale up, and require explosive gaseous raw materials.

In contrast, our

patented technologies are expected to allow us to produce highly scalable low-cost silicon-rich products that could be compatible with

solid-state and liquid-state electrolytes and have greater energy density and lower cost per kilowatt hour.

Additionally, Solidion may

be perceived to compete with certain other solid-state or lithium metal battery start-ups, such as QuantumScape, Solid Power and SES.

we view these companies as potential strategic partners, not competitors.

For instance, Solidion has complementary IPs that can help

each of these companies accelerate the commercialization of their lithium metal batteries (for example, by providing graphene/elastomer-protected

Li metal anode technologies).

Our lithium metal protection technologies are capable of addressing certain known issues associated with

rigid inorganic solid electrolytes, such as large electrode/electrode interfacial impedance and the typically high stack-holding pressure.

Solidion’s solid state batteries are expected

to be produced at scale and cost-effectively using current lithium-ion cell production process and equipment, thus enabling fast time-to-market

compared to all-solid-state batteries.

This versatile platform technology could potentially transform the lithium-ion battery industry

into producers of safe, solid-state batteries for EV, ESS, consumer electronics, and other power storage applications.

The following two charts summarize the key attributes

that differentiate Solidion’s products and technologies from certain of our competitors (Fig.

8 A brief summary of Solidion’s product/technology

attributes vs.

other key silicon anode-focused battery start-ups.

9 A brief summary of Solidion’s product/technology

attributes vs.

other key lithium metal cell-focused battery start-ups.

Human Capital

We believe that our success is driven by our

team of technology innovators and experienced business leaders.

We seek to hire and develop employees who are dedicated to our strategic

As of March 2024, we employed 32 full time employees, 2 part time employees and 1 temporary employee.

We are committed to maintaining equitable compensation

programs including equity participation.

We offer market-competitive salaries and strong equity compensation aimed at attracting and

retaining team members capable of making exceptional contributions to our success.

Our compensation decisions are guided by the external

market, role criticality, and the contributions of each team member.

Our corporate headquarters are located at 13355

Noel Rd., Suite 1100, Dallas, Texas, and our telephone number is (972) 918-5120.

Our Research and development and manufacturing

operations are located in Dayton, Ohio, where we own a building of approximately 27,646 square feet and lease a building of approximately

7,097 square feet.

Government Regulation and Compliance

There are government regulations pertaining to

battery safety, transportation of batteries, use of batteries in vehicles, factory safety and disposal of hazardous materials.

ultimately have to comply with these regulations to sell our battery products into market.

For example, we expect to become subject to federal

and state environmental laws and regulations regarding the handling and disposal of hazardous substances and solid waste, to include

electronic waste and battery cells.

These laws regulate the generation, storage, treatment, transportation, and disposal of solid and

hazardous waste and may impose strict, joint and several liability for the investigation and remediation of areas where hazardous substances

may have been released or disposed.

In the course of ordinary operations, we, through third parties and contractors, might in the future

handle hazardous substances within the meaning of the Comprehensive Environmental Response, Compensation, and Liability Act (“CERCLA”)

and similar state statutes and, as a result, may be jointly and severally liable for all or part of the costs required to clean up sites

at which these hazardous substances have been released into the environment.

We might also become subject to the strict requirements

of the Resource Conservation and Recovery Act (“RCRA”) and comparable state statutes for the generation or disposal of solid

waste, which may include hazardous waste.

Solidion expects to use existing factories to

produce solid-state batteries.

The Occupational Safety and Health Act (“OSHA”), and comparable laws in other jurisdictions,

regulate the protection of the health and safety of workers in such factories.

In addition, the OSHA hazard communication standard requires

that information be maintained about any hazardous materials used or produced in operations and that this information be provided to

employees, state and local government authorities, and the public.

The use, storage and disposal of battery packs

is regulated under federal law.

We expect any batteries we produce will be required to conform to mandatory regulations governing the

transport of “dangerous goods” that may present a risk in transportation, which includes lithium-ion batteries, and are subject

to regulations issued by the Pipeline and Hazardous Materials Safety Administration (“PHMSA”).

These regulations are based

on the UN Recommendations on the Safe Transport of Dangerous Goods Model Regulations and related UN Manual Tests and Criteria.

The regulations

vary by mode of transportation when these items are shipped, such as by ocean vessel, rail, truck or air.

We expect that the EVs that would use our battery

technology would be subject to numerous regulatory requirements established by the National Highway Traffic Safety Administration (“NHTSA”),

including applicable U.S.

with other silicon anode materials companies globally, such as Sila Nanotechnologies Inc., Group 14 Technologies, Inc., Enovix Corporation,

Enevate Corporation, Nexeon Ltd., Storedot Ltd., BTR New Energy Material Ltd., Shanshan Corporation, and Berzelius.

Some competitors produce

silicon anode materials via CVD, which is believed to be expensive and challenging to scale up, and require explosive gaseous raw materials.

In contrast, our patented technologies are expected to allow us to produce highly scalable low-cost silicon-rich products that could be

compatible with solid-state and liquid-state electrolytes and have greater energy density and lower cost per kilowatt hour.

We also compete with graphite anode materials

companies globally, such as BTR New Energy Material Ltd., Shanshan Corporation, Kaijin New Energy Technology Co.

Ltd., Zichen New Materials

Technology Co., Ltd., XFH Technology Co., Ltd., Zhongke Shinzoom Technology Co., Ltd., POSCO Future M Co., Ltd., Resonac Holdings Corporation,

Mitsubishi Chemical Corporation, Sinuo Industrial Development Co., NOVONIX Limited, Anovion Technologies, etc.

While the competitors produce

synthetic graphite by using petroleum coke as a raw material, Solidion’s products contain biochar-derived anode materials which

offset CO 2 from the atmosphere and reduce the overall CO 2 emissions considering raw materials.

Additionally, Solidion may be perceived to compete with certain other

solid-state or lithium metal battery companies, such as QuantumScape, Solid Power and SES.

However, we view these companies as potential

strategic partners, not competitors.

For instance, Solidion has complementary IP that can help each of these companies accelerate the

commercialization of their lithium metal batteries (for example, by providing graphene/elastomer-protected Li metal anode technologies).

Our lithium metal protection technologies are capable of addressing certain known issues associated with rigid inorganic solid electrolytes,

such as large electrode/electrode interfacial impedance and the typically high stack-holding pressure.

Solidion’s solid state batteries

are expected to be produced at scale and cost-effectively using current lithium-ion cell production process and equipment, thus enabling

fast time-to-market compared to all-solid-state batteries.

This versatile platform technology could potentially transform the lithium-ion

battery industry into producers of safe, solid-state batteries for EV, ESS, consumer electronics, and other power storage applications.

As Solidion plans to extend its business to battery cells, Solidion competes with leading tier-one battery manufacturers, including Amperex

Technology Limited (ATL), Contemporary Amperex Technology Co., Limited (CATL), LG Chem Ltd., Murata Manufacturing Co., Ltd., Panasonic

Industry Co., Ltd., and Samsung SDI Co., Ltd.

These companies possess significant financial resources, well-established supply chains,

and strong relationships with automotive and electronics manufacturers.

We believe that our success is driven by our team

of technology innovators and experienced business leaders.

We seek to hire and develop employees who are dedicated to our strategic mission.

As of December 31, 2024, we employed 28 full time employees.

are committed to maintaining equitable compensation programs including equity participation.

We offer market-competitive salaries and

strong equity compensation aimed at attracting and retaining team members capable of making exceptional contributions to our success.

Our compensation decisions are guided by the external market, role criticality, and the contributions of each team member.

corporate headquarters are located at 13355 Noel Rd., Suite 1100, Dallas, Texas, and our telephone number is (972) 918-5120.

Research and development and manufacturing operations are located in Dayton, Ohio, where we own a building of approximately 27,646 square

feet and lease a building of approximately 7,097 square feet.

For more information, please visit www.solidiontech.com

or contact Investor Relations.

Regulation and Compliance

are government regulations pertaining to battery safety, transportation of batteries, use of batteries in vehicles, factory safety and

disposal of hazardous materials.

We will ultimately have to comply with these regulations to sell our battery products into market.

example, we expect to become subject to federal and state environmental laws and regulations regarding the handling and disposal of hazardous

substances and solid waste, to include electronic waste and battery cells.

These laws regulate the generation, storage, treatment, transportation,

and disposal of solid and hazardous waste and may impose strict, joint and several liability for the investigation and remediation of

areas where hazardous substances may have been released or disposed.

In the course of ordinary operations, we, through third parties

and contractors, might in the future handle hazardous substances within the meaning of the Comprehensive Environmental Response, Compensation,

and Liability Act (“CERCLA”) and similar state statutes and, as a result, may be jointly and severally liable for all or

part of the costs required to clean up sites at which these hazardous substances have been released into the environment.

We might also

become subject to the strict requirements of the Resource Conservation and Recovery Act (“RCRA”) and comparable state statutes

for the generation or disposal of solid waste, which may include hazardous waste.

expects to use existing factories to produce solid-state batteries.

The Occupational Safety and Health Act (“OSHA”), and

comparable laws in other jurisdictions, regulate the protection of the health and safety of workers in such factories.

In addition, the

OSHA hazard communication standard requires that information be maintained about any hazardous materials used or produced in operations

and that this information be provided to employees, state and local government authorities, and the public.

use, storage and disposal of battery packs is regulated under federal law.

We expect any batteries we produce will be required to conform

to mandatory regulations governing the transport of “dangerous goods” that may present a risk in transportation, which includes

lithium-ion batteries, and are subject to regulations issued by the Pipeline and Hazardous Materials Safety Administration (“PHMSA”).

These regulations are based on the UN Recommendations on the Safe Transport of Dangerous Goods Model Regulations and related UN Manual

Tests and Criteria.

The regulations vary by mode of transportation when these items are shipped, such as by ocean vessel, rail, truck

expect that the EVs that would use our battery technology would be subject to numerous regulatory requirements established by the National

Highway Traffic Safety Administration (“NHTSA”), including applicable U.S.

federal motor vehicle safety standards (“FMVSS”).

EV manufacturers must self-certify that the vehicles

meet or are exempt from all applicable FMVSSs before a vehicle can be imported into or sold in the U.S.

There are numerous FMVSSs that

we expect would apply to vehicles that would use our battery technology.

Examples of these requirements include:

● Electric Vehicle

Safety — limitations on electrolyte spillage, battery retention and avoidance of electric

shock following specified crash tests;

● Crash Tests for

High-Voltage System Integrity — preventing electric shock from high voltage systems

and fires that result from fuel spillage during and after motor vehicle crashes.

These standards and regulations cover various

aspects of battery safety, including electrical safety, mechanical safety, thermal safety, and environmental safety.

They are developed

by organizations such as the Society of Automotive Engineers (also known as SAE), Underwriters Laboratories (“UL”), and regulatory

bodies such as NHTSA to ensure that batteries used in EVs meet specific safety requirements before being installed in a vehicle.

are significant similarities among these standards;

different EV makers require the battery suppliers to follow different standards.

We will work with UL and select EV makers to determine the required tests and to obtain the necessary safety certifications.

The United States Advanced Battery Consortium

(also known as USABC) provides the Battery Abuse Testing Manual for Electric and Hybrid Vehicle Applications, which defines abuse tests

for rechargeable energy storage systems (“RESSs”) used in electric vehicle applications.

These tests evaluate the response

of RESS technologies to conditions or events that are outside of normal use.

The manual recommends tests such as controlled crush, penetration,

thermal ramp, overcharge, and external short circuit tests across the cell, module, and pack levels (except for thermal ramp testing

at the pack level due to practical limitations).

We plan to conduct internal safety tests at the cell levels, including nail penetration,

overcharging, and over-discharging at elevated temperatures, during the final research and development and prototyping stages.

remaining safety tests at the cell level, we will rely on third parties, such as UL, for safety certification purposes.

collaborate with EV manufacturers to perform safety tests at the module and pack levels.

The timeline for conducting safety tests on batteries

for EVs will vary depending on factors such as the battery type, required testing standards, and the availability of testing facilities.

Typically, it takes several weeks to months to complete all the necessary safety tests at each level.

Additionally, if any issues or

failures are identified during the testing process, additional time may be required to address these issues and retest the battery.

For more information, see “Risk Factors

— Risks Related to Legal and Regulatory Compliance” discussing regulations and regulatory risks related to product liability,

tax, employment, export controls, trade, data collection, privacy, environmental, health and safety, anti-corruption and anti-bribery

Legal Proceedings

There is no material litigation, arbitration

or governmental proceeding currently pending against us or any members of our management team in their capacity as such.

EV manufacturers must self-certify that the vehicles meet or are exempt from all applicable FMVSSs before a vehicle can be imported into

or sold in the U.S.

There are numerous FMVSSs that we expect would apply to vehicles that would use our battery technology.

of these requirements include:

Vehicle Safety — limitations on electrolyte spillage, battery retention and avoidance

of electric shock following specified crash tests;

Tests for High-Voltage System Integrity — preventing electric shock from high voltage

systems and fires that result from fuel spillage during and after motor vehicle crashes.

standards and regulations cover various aspects of battery safety, including electrical safety, mechanical safety, thermal safety, and

environmental safety.

They are developed by organizations such as the Society of Automotive Engineers (also known as SAE), Underwriters

Laboratories (“UL”), and regulatory bodies such as NHTSA to ensure that batteries used in EVs meet specific safety requirements

before being installed in a vehicle.

There are significant similarities among these standards;

different EV makers require the battery

suppliers to follow different standards.

We will work with UL and select EV makers to determine the required tests and to obtain the

necessary safety certifications.

United States Advanced Battery Consortium (also known as USABC) provides the Battery Abuse Testing Manual for Electric and Hybrid Vehicle

Applications, which defines abuse tests for rechargeable energy storage systems (“RESSs”) used in electric vehicle applications.

These tests evaluate the response of RESS technologies to conditions or events that are outside of normal use.

The manual recommends

tests such as controlled crush, penetration, thermal ramp, overcharge, and external short circuit tests across the cell, module, and

pack levels (except for thermal ramp testing at the pack level due to practical limitations).

We plan to conduct internal safety tests

at the cell levels, including nail penetration, overcharging, and over-discharging at elevated temperatures, during the final research

and development and prototyping stages.

For the remaining safety tests at the cell level, we will rely on third parties, such as UL,

for safety certification purposes.

We will also collaborate with EV manufacturers to perform safety tests at the module and pack levels.

timeline for conducting safety tests on batteries for EVs will vary depending on factors such as the battery type, required testing standards,

and the availability of testing facilities.

Typically, it takes several weeks to months to complete all the necessary safety tests at

Additionally, if any issues or failures are identified during the testing process, additional time may be required to address

these issues and retest the battery.

For more information, see “Risk Factors — Risks Related

to Legal and Regulatory Compliance” discussing regulations and regulatory risks related to product liability, tax, employment, export

controls, trade, data collection, privacy, environmental, health and safety, anti-corruption and anti-bribery compliance.

is no material litigation, arbitration or governmental proceeding currently pending against us or any members of our management team

in their capacity as such.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business