Li-Metal Commissions US Anode Production Facility and Produces First Product

US Based Facility Produces First Batch of Advanced Anode Sample Materials for North American Battery Developers

Establishes Key Infrastructure for North America's Next-Generation Battery Supply Chain

TORONTO, ON / ACCESSWIRE / January 13, 2022 / Li-Metal Corp. (CSE:LIM)(FSE:5ZO) ("Li-Metal" or the "Company"), a leading developer of lithium metal anode and lithium metal technologies critical for next-generation batteries, announced today that its roll-to-roll anode pilot plant (the "Facility") in Rochester, New York has been commissioned and has produced its first batch of lithium metal anode product.

The Facility represents a greater than tenfold expansion in the Company's ability to supply lithium anode samples to next-generation battery makers and will be able to produce anode in the quantities needed for product qualification. The Facility establishes key infrastructure for the North American next-generation battery ecosystem, establishing capacity to produce thousands of large pouch cells per year.

The pilot plant will also facilitate future anode technology development, helping industrialize the Company's second- and future-generation products and serving as an initial launching off point for the commercialization of next-generation battery technologies in North America.

"We are pleased to announce that our US based lithium anode production facility is now operational and has produced its first lithium metal anode sample material - on a wide format, roll-to-roll tool," said Li-Metal's co-founder and CEO, Maciej Jastrzebski. "This demonstrates our ability to execute on our commercialization strategy to entrench our anode technology, supplying next-generation battery developers with high-quality sample anode materials as they move their products through sampling and qualification stages with automakers and other end users, which significantly increases our ability to secure off-take agreements with battery developers."

The Facility's first product is an ultra-thin metallic lithium anode that aims to reduce the cost of next-generation batteries while improving their energy density. Li-Metal will be sending this first batch of lithium metal anode sample products for testing to ensure it meets the quality standards and required specifications of next-generation battery developers.

To meet rapidly growing demand and the need for superior lithium anode material, Li-Metal expects to reach commercial scale production by 2025. As electrification continues to gain momentum, the adoption of next-generation batteries will accelerate and electric vehicle (EV) manufacturers will seek high-performance next-generation batteries to power more cost-effective, longer-range and safer EVs. The need for high-performance anodes is expected to surge as total demand for lithium-ion batteries is expected to exceed 2.6 TWh per year, according to BloombergNEF and total annual EV production is expected to exceed 30 million vehicles per year. Major global EV manufacturers including BMW, GM and Volkswagen are expected to advance next-generation batteries to product qualification for future EVs in the coming years - sufficient lithium metal anode production will be critical to clearing this hurdle.

Fully commissioned roll-to-roll lithium anode production equipment at Rochester, NY site

First metallic lithium anode product from pilot anode plant

On behalf of the Board

"Maciej Jastrzebski"
Maciej Jastrzebski
CEO and Director

About Li-Metal Corp.

Li-Metal is a Canadian-based company developing lithium metal anodes and lithium metal production technologies for use in next generation batteries. Our production methods are significantly more sustainable than existing products and offer lighter, more energy dense and safer batteries that are critical to tomorrow's electric vehicles. For more information visit, www.li-metal.com.

Forward-Looking Information

This news release contains "forward-looking information" within the meaning of applicable securities laws relating to the Company. Any such forward-looking statements may be identified by words such as "expects", "anticipates", "believes", "projects", "plans" and similar expressions. Readers are cautioned not to place undue reliance on forward-looking statements. Statements about, among other things, the Company's strategic plans are forward-looking information. These statements should not be read as guarantees of future performance or results. Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from those implied by such statements. Although such statements are based on management's reasonable assumptions, there can be no assurance that the development of the business of the Company will be completed as described above. The Company assumes no responsibility to update or revise forward-looking information to reflect new events or circumstances unless required by applicable law.

Investor Contact

For more information on Li-Metal or to be added to the Company's email distribution list, please contact:

Salisha Ilyas
ir@li-metal.com
Tel: 647-795-1653

Media Contact
Harry Nicholas
Li-MetalPR@icrinc.com

SOURCE: Li-Metal Corp.