Neo Battery Materials anticipates producing 5,000 tonnes of silicon anode annually in key proximity to Stellantis, NextStar Energy and Volkswagen

Windsor, Ont., is adding a new battery supply chain link to its roster: a silicon anode factory.

Toronto-based Neo Battery Materials Ltd. has entered into a 49-year lease agreement on an 3.2-hectare parcel of land at the Windsor Airport, the company and municipality announced today.

Neo will construct a $120-million silicon anode plant on the land. It intends to produce 5,000 tonnes of product each year.

“[This] represents a transformative milestone for Neo Battery Materials and the Canadian and Ontario battery ecosystem,” says Spencer Huh, director, president and CEO of Neo, in a press release.

“We are proud to be establishing Canada’s first advanced silicon anode manufacturing facility…with a significant investment in the Windsor community.”

Neo Battery’s silicon anode factory

Neo signed the deal with the City of Windsor in late December 2024.

The project will begin with an initial $69-million investment. Over the next eight years, Neo intends on increasing its total investment to $120 million for the facility.

The factory will provide approximately 100 direct jobs.

A spokesperson confirms to Electric Autonomy that Neo aims to break ground in “the latter half of this year.” The company anticipates reaching full scale by 2030.

“However, the full-scale expansion timeline may be accelerated based on establishing joint ventures, partnerships, and advanced agreements with the larger players in the battery value chain,” says the Danny Huh, senior vice president of strategy and operations, at Neo.

“Neo Battery is conducting active evaluations with tier-1 battery cell manufacturers and OEMs. This year and moving forward, we expect these relationships to materialize through advanced agreements.”

Windsor a hub of innovation

Early on in Canada’s mission to establish a national EV battery supply chain, the Windsor area emerged as a leading region.

That position has only solidified with time.

Currently, Windsor is home (or a close neighbour) to important supply chain components including: NextStar Energy (a battery factory); Stellantis (automaker); Volkswagen St. Thomas (automaker and battery factory); University of Windsor (talent and training programs); DS Actimo Canada, Kautex Textron and Integrity Tool & Mold Inc. (all auto suppliers); and the Flex-Ion Battery Innovation Centre (R&D).

“As the automotive and automobility capital of Canada, and one of the most important communities to watch in the province and country, we are excited to welcome Neo to Windsor and look forward to the positive impacts, including job creation, this investment will bring to our region,” says Drew Dilkens, Windsor’s mayor and chair of the board of Invest WindsorEssex.

“Today’s announcement is a testament to Windsor’s strategic location, skilled workforce, and leadership in the automotive and EV industries.”