NEO Battery Materials Ltd (NBM) AI Stock Analysis

• Market Cap: C$87.94M
• Dividend Yield: N/A
• Average Volume (3M): 185.84K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.96
• Revenue Growth: N/A
• EPS Growth: -38.68%
• Country: CA
• Employees: N/A
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial Materials
• EPS (TTM): -0.02
• Shares Outstanding: 141,842,510
• 10 Day Avg. Volume: 205,186
• 30 Day Avg. Volume: 185,844
• PEG Ratio: -0.13
• Price to Book (P/B): 11.70
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -8.35
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 53 Neutral
• Price Target: C$0.67 ▲(45.65% Upside)

The score is held down primarily by weak financial performance (pre-revenue operations, widening losses, and ongoing cash burn with funding dependence). Offsetting this are constructive technical trends (price above major moving averages with moderate momentum) and a strong set of positive corporate developments tied to orders, offtake, and scaling efforts; valuation provides limited support due to negative earnings and no dividend yield.

Positive Factors

Large, growing end markets (EV & ESS)

NEO's silicon-based anode tech addresses EV and energy-storage markets, large secular trends supporting sustained demand. Structural emphasis on higher energy density and faster charging improves long-term addressable market and increases probability of scale and multi-year revenue growth.

Commercial validation and scaling progress

Documented pilot orders, offtake and facility expansion constitute tangible commercialization milestones. These commercial engagements validate the technology, de-risk market entry, and support capacity build‑out, increasing likelihood that R&D will convert into recurring revenue over the medium term.

Modest leverage relative to peers

A debt-to-equity of ~0.38 is moderate for a capital‑intensive materials developer, meaning solvency is not yet dominated by high leverage. This provides management some financing flexibility to support scale‑up through debt or structured funding without immediate insolvency pressure.

Negative Factors

Pre-revenue with widening net losses

Remaining pre-revenue while net losses accelerate demonstrates the company has not yet proven its ability to monetize technology. Persistent negative earnings expand financing needs, increase dilution risk, and delay the timeframe to reach sustainable operating margins and positive returns.

Persistent negative cash flow and cash burn

Consistent negative operating and free cash flow implies ongoing cash burn and dependence on external funding. This constrains the firm's ability to scale manufacturing and convert pilot wins into production without dilution, higher borrowing, or partnerships that may erode future margins.

Shrinking equity base elevates solvency risk

A sharply reduced equity cushion lowers the firm's ability to absorb shocks and limits borrowing capacity. Rising leverage alongside declining equity increases financial vulnerability, raises cost of capital, and constrains strategic options during the critical commercialization and scaling phase.

NEO Battery Materials Ltd Business Overview & Revenue Model

Company Description

NEO Battery Materials Ltd., a junior resource company, focuses on the exploration of battery metals in North America. The company holds interests in various mining claims covering 467 hectares located in Golden, British Columbia. It also focuses on developing silicon anodes. The company was formerly known as Pan Andean Minerals Ltd. and changed its name to NEO Battery Materials Ltd. in March 2021. NEO Battery Materials Ltd. was incorporated in 2006 and is headquartered in Vancouver, Canada.

How the Company Makes Money

NEO Battery Materials Ltd primarily generates revenue through the sale of its proprietary silicon anode materials to battery manufacturers and technology companies involved in the production of lithium-ion batteries. The company develops and licenses its technology, providing customized silicon anode solutions that meet the specific needs of its clients. Additionally, NBM may enter into strategic partnerships and joint ventures with key players in the battery and renewable energy industries to enhance its product offerings and expand market reach. Revenue streams also include potential government grants and funding for research and development initiatives aimed at advancing battery technology.

NEO Battery Materials Ltd Financial Statement Overview

Summary

Financial profile is weak: the company remains pre-revenue with widening net losses (TTM net loss -$4.70M) and consistently negative gross profit. Cash flow is a key pressure point with continued burn (TTM operating cash flow -$1.76M; TTM free cash flow -$1.98M) and likely ongoing funding needs. Balance sheet leverage is still modest (TTM debt-to-equity 0.38), but the shrinking equity base increases risk.

Income Statement

The company continues to generate no revenue across the disclosed periods, while losses have widened materially. Net loss increased from -$1.61M (FY2023) to -$2.84M (FY2024) to -$3.88M (FY2025 annual), and TTM (Trailing-Twelve-Months) net loss is -$4.70M, indicating an accelerating cost base without a commercial ramp. Gross profit is consistently negative, reinforcing that the business is still pre-revenue and not yet demonstrating operating leverage; the main positive is that the loss profile is relatively consistent with an early-stage materials company, but the trajectory is clearly worsening.

Balance Sheet

Leverage remains modest, with debt-to-equity at 0.38 in TTM (Trailing-Twelve-Months), though it has risen from 0.17 in the most recent annual period, signaling greater reliance on debt. Equity has declined sharply over time (from ~$2.06M in FY2024 to ~$0.68M in TTM), reflecting ongoing losses and balance-sheet burn. Total assets are relatively stable (~$1.39M in TTM), but returns remain deeply negative (return on equity around -4.73 in TTM), highlighting that the current capital base is not producing profits; overall, solvency is not yet stressed by debt, but the shrinking equity cushion is a clear risk.

Cash Flow

Cash generation is weak, with operating cash flow negative in every period and still -$1.76M in TTM (Trailing-Twelve-Months). Free cash flow is also persistently negative (-$1.98M TTM), implying continued cash burn and likely ongoing funding needs. While free cash flow improved versus the prior annual period (positive free-cash-flow growth in TTM), the business has not demonstrated a sustained move toward breakeven cash flow, and the cash profile remains the most immediate financial pressure point.

Breakdown	TTM	Dec 2024	Dec 2024	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	0.00	0.00	0.00	0.00	0.00	0.00
Gross Profit	-317.50K	-206.97K	-281.22K	-112.50K	-72.00K	-58.89K
EBITDA	-5.31M	-2.98M	-3.96M	-1.82M	-1.91M	-979.71K
Net Income	-5.24M	-2.84M	-3.88M	-1.61M	-2.08M	-1.09M
Balance Sheet
Total Assets	9.54M	2.95M	1.42M	3.13M	1.67M	389.12K
Cash, Cash Equivalents and Short-Term Investments	4.82M	941.98K	369.69K	1.63M	1.26M	219.28K
Total Debt	388.62K	215.75K	168.07K	177.86K	12.17K	141.85K
Total Liabilities	1.16M	725.43K	654.09K	179.24K	178.29K	306.46K
Stockholders Equity	8.99M	2.06M	977.77K	1.89M	1.50M	82.66K
Cash Flow
Free Cash Flow	-6.69M	-2.88M	-1.75M	-2.26M	-1.67M	-1.15M
Operating Cash Flow	-6.47M	-2.52M	-1.73M	-1.77M	-1.50M	-1.15M
Investing Cash Flow	-225.84K	-2.07M	-25.22K	-1.16M	-177.46K	0.00
Financing Cash Flow	11.08M	3.90M	1.22M	3.31M	2.30M	1.06M

NEO Battery Materials Ltd Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.46
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:NBM, the sentiment is Neutral. The current price of 0.46 is below the 20-day moving average (MA) of 0.67, below the 50-day MA of 0.59, and below the 200-day MA of 0.56, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 43.91 is Neutral, neither overbought nor oversold. The STOCH value of 8.37 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:NBM.

NEO Battery Materials Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
NBM	53 Neutral	C$87.94M	-13.95	-450.88%	―	―	-38.68%
NMI	51 Neutral	C$58.82M	-56.82	-3.86%	―	―	―
GGI	46 Neutral	C$22.81M	-0.63	-110.71%	―	―	-2850.00%
LIT	45 Neutral	C$20.63M	-1.50	-24.07%	―	―	76.16%
STS	44 Neutral	C$14.09M	-0.92	―	―	―	―
LBNK	42 Neutral	C$29.50M	-2.93	-122.87%	―	―	-692.49%

NEO Battery Materials Ltd Corporate Events

NEO Battery Materials Seeks Up to C$7 Million in Private Placement to Expand Battery Manufacturing

NEO Battery Materials has launched a non-brokered private placement of up to approximately 11.67 million units at C$0.60 per unit, seeking to raise as much as C$7 million. Each unit includes one common share and one non-transferable warrant exercisable at C$0.85 for 36 months, with provisions for finder fees and options, and the financing remains subject to final TSX Venture Exchange approval. The funds are earmarked primarily for installing additional battery manufacturing equipment, including formation and cylindrical/prismatic cell assembly, at the company’s operational Gimje battery factory and expansion site, as well as for general working capital, underscoring NEO’s push to scale production capacity and strengthen its position in advanced lithium-ion battery components for high-growth electronics and mobility markets.

The most recent analyst rating on (TSE:NBM) stock is a Hold with a C$0.77 price target. To see the full list of analyst forecasts on NEO Battery Materials Ltd stock, see the TSE:NBM Stock Forecast page.

NEO Battery Materials Secures C$7 Million in Fully Subscribed Private Placement to Expand Manufacturing

NEO Battery Materials has fully subscribed a non-brokered private placement of 11,666,667 units at C$0.60 per unit, raising approximately C$7 million with strong backing from institutional investors. Each unit comprises one common share and one non-transferable warrant exercisable at C$0.85 for 36 months, and the proceeds will be used to install additional battery manufacturing equipment, including formation and cylindrical/prismatic cell assembly, at its operational Gimje battery factory and expansion site, as well as for general working capital, supporting the company’s capacity expansion and positioning within the advanced battery manufacturing sector. The financing, which remains subject to standard closing conditions and TSX Venture Exchange acceptance, is being offered to investors outside Canada under an exemption from prospectus requirements, potentially broadening NEO Battery’s international investor base while reinforcing its capital resources for scaling production.

The most recent analyst rating on (TSE:NBM) stock is a Hold with a C$0.77 price target. To see the full list of analyst forecasts on NEO Battery Materials Ltd stock, see the TSE:NBM Stock Forecast page.

NEO Battery Materials Grants RSUs as It Shifts From R&D to Manufacturing

NEO Battery Materials Ltd., a Canadian developer of silicon-enhanced lithium-ion batteries for high-performance applications such as drones, robotics, EVs, and AI-focused energy storage systems, is expanding from its R&D roots toward full-scale manufacturing and integrated battery solutions in North America. The company has granted 1,350,000 restricted share units to certain directors and officers under its equity incentive plan, recognizing milestones including the start of production at its 250 MWh Battery Foundry, securing global automotive manufacturers as anchor customers, and advancing its silicon battery products; the awards are designed to align leadership with shareholders and support continued execution as NEO targets expanded production capacity, a broader customer pipeline, and non-Chinese battery supply options in 2026, subject to TSX Venture Exchange approval of the grant.

The most recent analyst rating on (TSE:NBM) stock is a Hold with a C$0.60 price target. To see the full list of analyst forecasts on NEO Battery Materials Ltd stock, see the TSE:NBM Stock Forecast page.

NEO Battery Wins Vendor Status with Asian Fortune 500 Automaker

NEO Battery Materials has secured official vendor status with an unnamed Asian Fortune Global 500 automotive original equipment manufacturer, following a successful supplier onboarding process that met the customer’s technical, compliance and evaluation standards. The designation validates the quality and consistency of NEO’s silicon‑enhanced battery products and manufacturing operations, and allows the company to directly supply and engage in commercial transactions with the automaker without third‑party intermediaries, expanding its role in ongoing testing, integration and future sourcing discussions within the global automotive battery supply chain.

The most recent analyst rating on (TSE:NBM) stock is a Hold with a C$0.60 price target. To see the full list of analyst forecasts on NEO Battery Materials Ltd stock, see the TSE:NBM Stock Forecast page.

NEO Battery Materials Taps U of T Polymer Expert for Lightweight Battery and Drone R&D Push

NEO Battery Materials has appointed University of Toronto associate professor and nano-structured polymer and composite materials expert Dr. Patrick C. Lee as Senior Scientific Advisor to support its silicon-enhanced battery technology for mobility and electronics applications. Dr. Lee will guide the development of lightweight composite materials for battery packs and drone airframes, as well as optimized thermal interface materials to improve heat dissipation, aiming to boost energy density, efficiency and safety, while also deepening NEO’s collaboration with the University of Toronto and positioning the company more firmly within Canada’s advanced materials and clean energy ecosystem through innovation hubs and potential funding partnerships.

NEO Battery Wins Second Fortune 500 Auto Order, Advancing OEM Commercial Ties

NEO Battery Materials has secured a second pilot-scale battery purchase order from a North America-based Fortune 500 automotive manufacturer, following a recent initial order from an Asia-based Fortune 500 automaker, marking deeper engagement with global automotive OEMs. The orders, coordinated via ENPLUS, will see NEO ship industry-grade battery electrodes and pouch cells produced at its megawatt-hour manufacturing facility for integration testing in automotive applications, reinforcing the company’s technology, manufacturing quality and process stability and positioning it closer to potential long-term commercial supply agreements and broader adoption of its silicon-enhanced battery solutions in the automotive sector.

NEO Battery Ties Up With Korean Defense Institute to Push Drone Battery Integration

NEO Battery Materials has signed a Memorandum of Understanding with the Korea Institute for Defense Industry, a Ministry of National Defense-approved organization, to deepen its engagement with South Korea’s defense ecosystem across industry, military, academia, research and government. Under the agreement, the partners will form a Joint Task Force focused on integrating NEO’s silicon-enhanced battery technology into defense drones and unmanned aerial systems, coordinating technical evaluations and defense R&D, and supporting government–industry initiatives, positioning NEO for faster adoption of its batteries in Korean defense applications and greater visibility into performance requirements for future deployment.

NEO Battery Materials Partners with Nascent Materials for Advanced Lithium-Ion Batteries

NEO Battery Materials Ltd. has entered a Joint Product Development Agreement with Nascent Materials Inc. to create advanced, low-cost lithium-ion batteries for defense drones and AI energy storage systems. This collaboration will integrate NEO’s silicon anode materials with Nascent’s LFP cathode materials, aiming to produce high-energy-density batteries that enhance the range and capabilities of unmanned aerial vehicles and support the power demands of AI data centers and power grids. The partnership is a strategic move to strengthen the North American battery supply chain and accelerate the electrification of critical industries.

NEO Battery Materials Secures Manufacturing Facility Lease to Boost Production

NEO Battery Materials Ltd. has entered into a definitive lease agreement with ENPLUS Co., Ltd. for a battery electrode manufacturing facility in the Gimje Free Trade Zone. This move marks a significant transition from technology development to production, allowing NEO to access commercial-scale manufacturing capabilities. The facility will initially supply major automotive OEMs and downstream manufacturers, with plans to adapt production for custom silicon-enhanced electrodes for new clients. The lease agreement enables NEO to bypass the capital and time-intensive process of building a new plant, accelerating its commercialization and scaling efforts.

NEO Battery Secures $3M Order and Advances Facility Lease

NEO Battery Materials Ltd. has secured a $3 million CAD purchase order and a joint product development agreement with a South Korean unmanned combat aerial vehicle manufacturer. This collaboration, under ‘Project David,’ aims to provide advanced battery solutions to enhance the performance of various drone platforms, including swarm UCAVs, medium VTOLs, and balloon systems. The project focuses on improving energy density, flight time, and cost-effectiveness, positioning NEO to compete with traditional fuel-based UCAVs. Additionally, NEO is set to finalize a lease agreement for a battery components manufacturing facility, which will enable the company to restart production and expand its supply of silicon-enhanced batteries to major automotive manufacturers and other clients.

NEO Battery Materials Secures $5 Million for Expansion and Development

NEO Battery Materials Ltd. has successfully closed a non-brokered private placement, raising approximately $5 million CAD through the issuance of 9,803,921 units. The proceeds will be used to acquire battery manufacturing equipment and support the company’s expansion efforts, enhancing its production capabilities. This financial move is expected to strengthen NEO’s market position in the battery technology industry, particularly in the electric vehicle and energy storage markets, by enabling further development and scaling of its silicon anode materials.