Receipt of Commercial Orders for OS3 Electrolyte Material

Madison, WI: August 30, 2018

Silatronix®, Inc., the global leader in organosilicon (OS) electrolyte materials, is announcing receipt of commercial orders from various customers in North America and China for its OS3® product, a lithium-ion battery (“LiB”) electrolyte co-solvent. Initial shipments of Silatronix OS3 to these customers are scheduled for 3rd quarter of 2018.

From its portfolio of OS advanced functional solvents, Silatronix has qualified OS3 as its first commercial product in the LiB market. The customers currently placing orders for OS3 will be using the material in LiBs for multiple applications, including military, drone, and consumer electronic products. In total, Silatronix has OS3 design evaluations in process with over 35 organizations in the global LiB industry.

“The stabilizing benefits of OS3 at high voltage and high operating temperature are enabling a wider range of LiB cell capability for our customers’ applications,” said Carl Thoemmes, VP Sales & Marketing. “We are excited for the successful launch of OS3 and are now focused on expanding our team and manufacturing capability to support the growing Silatronix customer base.”

OS3 offers a unique functionality in LiB electrolyte that stabilizes lithium salt and prevents its decomposition. This bulk electrolyte functionality allows OS3 to be applied in all commonly used LiB anode and cathode combinations produced today. Initial OS3 shipments will be used in a variety of LiB chemistries, including LCO for drones and consumer electronic products, NCA for military applications, and LFP for mobility. Additionally, some of these systems are already utilizing silicon-containing anode materials. Future shipments will support NMC-graphite and NMC-silicon systems for automotive use.

“The market for OS3 is exciting because it’s so diverse and not limited to just one LiB chemistry or application,” said Mark Zager, Silatronix CEO. “We see a viral adoption pattern emerging with OS3, particularly with silicon-anode systems. Silicon anodes really challenge electrolyte stability, and this is exactly where our customers report seeing the greatest benefit from adding OS3 to their electrolytes.”

Silicon anodes are one part of the multi-variable materials technologies pushing to improve LiB energy density. The latest generation of high energy anode and cathode systems rapidly degrade traditional LiB electrolytes. OS3 enabled electrolytes provide the stability needed to make these systems viable for their intended applications.

LiBs are the fastest growing segment in the battery industry with current production volume expected to grow by a factor of four by 2025. Silatronix believes commercial opportunities for its portfolio of OS electrolyte products could exceed US$1bn in this timeframe.

About OS3:
OS3 is the latest generation in performance enhancing organosilicon electrolyte material available from Silatronix. OS3 provides significant improvement in LiB cell performance when added to the electrolyte formulation in concentrations of 1-5%. OS3 works by stabilizing lithium salt in solution and helping to prevent the decomposition that normally occurs in high voltage and high temperature battery operation. It is the only commercially available material that prevents LiPF6 breakdown at high voltage and high temperature, while also eliminating hydrofluoric acid (HF) from LiB cells. This results in reduced swelling, longer cycle life, and wider operating temperature capability.

About Silatronix:
Silatronix is commercializing a new class of patented materials based on organosilicon (OS) compounds for use in energy storage devices, especially electrolytes for lithium-ion batteries (LiBs). OS compounds are environmentally friendly, non-flammable, high temperature materials suited for use as electrolytes, binders, and coatings in energy storage devices. In LiBs, OS materials can enhance thermal stability and safety, enable use of high energy density anodes and high voltage cathodes, and be cost-effectively produced using existing manufacturing processes for silicone polymers. Visit www.silatronix.com for more information.

For questions or additional information about this press release, please contact Carl Thoemmes of Silatronix at 608-467-5626.