Li-Metal Corp. announced the successful production of its first batch of ultra-thin lithium on metalized polymer anodes, a second-generation lithium metal anode technology. At Li-Metal's advanced anode pilot plant in Rochester, New York, the Company has demonstrated its ability to leverage its roll-to-roll physical vapour depiction (PVD) anode technology and PVD equipment to produce its second-generation products at pilot scale.

Li-Metal's ultra- thin lithium on metalized polymer anode are expected to reduce the need for copper in next-generation batteries anodes, resulting in improved costs by up to 25% and lighter weight batteries, while delivering improved gravimetric and volumetric energy densities. The capability to do this further demonstrates the flexibility of the Company's scalable PVD anode technology and ability to customize its product offering. Li-Metal's second-generation anode technology expands its ability to support current EV as well as prospective electric vertical take-off and landing (eVTOL) and aviation customers focused on developing next-generation batteries.

The ability to apply lithium using PVD onto polymers or metalized polymers has been complex and Li-Metal's accomplishment required significant process intensification, an important metric for PVD technologies, which further validates the advancement of its technology over the past several years. To achieve this milestone, the Li-Metal team also made significant improvements to its PVD technology and process, including web handling and cooling. Currently, battery developers utilize lithium metal anode that use 6-10 microns of copper foils, on average, which results in energy densities of less than 400 Wh/kg.

Next-generation battery developers, particularly those targeting the eVTOL and electric aviation markets, are seeking to produce batteries with more than 450 Wh/kg and energy density of more than 1000 Wh/kg. Li-Metal's second -generation anode products utilize metalized polymers with 0.5-1 microns of copper, which enables the lightweighting of anodes and is expected to enable next-generation battery developers achieve their targeted battery performance metrics. Plans for Commercial Scale Capabilities.

Li-Metal and Mustang Vacuum Systems Inc. ("MVS"), the Company's exclusive PVD machine building partner, plan to work together to produce the Company's second-generation products at commercial-scale. Li-Metal is also working with select customers to qualify its second-generation battery anode products and plans to begin sampling the material more broadly in 2024. Li-Metal and MVS plan to jointly develop and operate the Company's first commercial-scale PVD machine at MVS' facility in Florida, which is expected to be commissioned by mid 2024.

Li-Metal's first commercial-scale P V machine aims to deliver between 1-2 million m2 of anode for use by several of its next generation battery developers working to get their B and C samples qualified. Anode Production Milestones.