J-Star Holding signs MOU with White Group to advance financing for Texas solid-state battery facility

J-Star Holding Co., Ltd., today announced that it has signed a non-binding memorandum of understanding (MOU) with White Group Ptd. Ltd., a Singapore-based investment and development firm, to support capital formation for the Company's planned automated solid-state battery production facility in Baytown, Texas.

The financing initiative builds upon J-Star's previously announced strategic partnership with Patriot Green Energy Technology Co., Ltd. (PSSB) to develop Made-in-USA polymer-based solid-state battery solutions and establish a 100 megawatt-hour (MWh) modular production line targeting the rapidly growing unmanned aerial vehicle (UAV) and drone markets.

Under the MOU, White Group will work with J-Star to identify and introduce potential U.S.-based private equity partners to participate in a proposed $100 million investment to support construction, automation and technical development of the Baytown facility. The investment is expected to complement J-Star and PSSB's previously submitted U.S. Department of Energy grant application for the project.

Advancing the Baytown Solid-State Battery Initiative

The proposed capital raise represents the next phase of J-Star's Baytown project, which already includes:

– A strategic partnership with PSSB, a developer of next-generation solid-state battery technology backed by Taiwan's Industrial Technology Research Institute (ITRI)

– A jointly submitted U.S. Department of Energy grant application

– A commitment from the Baytown Economic Development Foundation securing a site in the TGS Cedar Port Industrial Park

– Plans to establish a fully automated U.S. production line designed to supply high-density batteries for aerospace, defence and dual-use drone applications

Proceeds from the expected financing are expected to support:

– Completion of the 100 MWh automated solid-state battery production line targeting drone and advanced mobility applications

– Procurement of customised automated manufacturing systems

– Technology transfer, workforce training and infrastructure development

– Technical milestones required for federal funding and customer qualification

Jonathan Chiang, CEO and Chairman of J-Star Holding, commented, "This agreement with White Group represents an important step in advancing the financing strategy for our Baytown, Texas facility. Following our partnership with PSSB, our Department of Energy grant application, and the securing of our Baytown site, we are now focused on building the capital structure required to bring this project into execution. We believe the combination of Taiwanese battery innovation and U.S. manufacturing will help establish a secure domestic supply chain for next-generation energy storage solutions serving the rapidly expanding aerospace and defence drone markets."