NEO Battery Reports $203,566 in Q2 Revenue and a $392,000 Fortune 500 Foundry Order

NEO Battery Materials reported revenue of $203,566 for its fiscal 2027 second quarter ended August 31, 2026, alongside a gross loss of $807,492 and a cash balance of $2.1 million. The Toronto-based company, which makes silicon-enhanced lithium-ion cells for drones, robotics and defense customers from a base in Gimje, South Korea, disclosed the figures in its quarterly results published by PR Newswire.

NEO Battery's Defense and Foundry Orders

Revenue for the six months ended August 31, 2026, was $382,530, and the six-month gross loss was $1.5 million. NEO said margins reflect early-stage commercial production and the scale-up of its cell manufacturing expansion facility, where volumes have not yet reached the level needed to absorb the fixed cost base. The company said it expects the gap to narrow as production volume increases.

A North American Fortune 500 automotive OEM turned recurring foundry orders into a purchase order agreement valued at approximately $392,000 (US$280,000), which NEO described as one of the largest contracts in its foundry portfolio. A South Korean defense prime and tier-1 pack manufacturer awarded NEO a contract to develop and manufacture custom batteries for an undisclosed defense project, starting with the A-sample phase and with a defined path to B-sample pilot orders and volume production. The Republic of Korea Army placed its first direct purchase order for military-grade drone battery packs, used in its TIGER program.

NEO also signed a letter of intent with Japanese drone maker Liberaware to jointly optimize Liberaware's UAS platforms with NEO's battery technology and to evaluate a joint venture or special-purpose vehicle for drone battery manufacturing in Japan. Liberaware had entered a letter of intent with NEO Battery Materials Korea to explore the feasibility of producing high-performance drone batteries domestically in Japan, Third News reported.

"Since reporting the first quarter, we received our first direct order from the Republic of Korea Army, our largest foundry contract to date from a Fortune 500 automotive OEM, and a development contract from a South Korean defense prime," said Spencer Huh, President and CEO of NEO.

NEO Battery's Gimje Expansion Records

According to akta.pro company records, NEO closed its 3.2-acre Gimje Expansion Facility in March 2026, targeting 500 MWh of annual capacity and 20 tons per year of silicon anode scale-up, with completion set for the fourth quarter of 2026. The same records list 20 MWh of production capacity across the cylindrical and prismatic cell lines and eight funding rounds on record, including a $2.8 million post-IPO equity round in August 2026.

Contracts Signed Before the Quarter

NEO was contracted by a South Korean defense prime and tier-1 battery pack manufacturer to develop custom batteries for an undisclosed defense project, Newswire reported in October 2026. In September 2026, NEO secured a CAD 392,000 purchase order from a North American Fortune 500 automotive OEM and received UN 38.3 certification for its 11.5Ah drone battery, according to Newswire. NEO also entered a joint development agreement with South Korean drone maker Preneu and signed a letter of intent to enter Canada's public safety and defense sectors, Newswire reported in September 2026.

NEO Battery's 21700 Line Timeline

NEO said all equipment for its tabless-architecture 21700 cylindrical line is expected to be delivered by mid-November, with full commissioning by the end of calendar 2026. The initial target capacity is approximately 10,000 to 18,000 cells per month. NEO also said it expects to ship first samples into Ukraine for evaluation within the next month.