Dear Shareholders, Partners, and Friends of ELEQTRION,

As we close the first quarter of 2025, I am thrilled to share our progress, achievements, and strategic vision for the year ahead. ELEQTRION continues to make significant strides in advancing sustainable energy storage through our innovative Aluminium-ion (Al-ion) battery technology, positioning us as a key disruptor in the rapidly evolving battery market. This letter highlights our technological milestones, financial developments, team growth, and strategic partnerships — all of which reinforce our path toward commercialization.

A Transformative Year Ahead: Our Vision for 2025

The global demand for safer, more sustainable, and cost-effective energy storage has never been greater. With lithium-ion batteries facing supply chain constraints, geopolitical risks, and significant safety concerns, ELEQTRION’s Al-ion technology offers a compelling alternative — leveraging abundant materials, superior safety, simpler technology and competitive performance.

Our 2025 roadmap continues to be focused on three key priorities:

• Scaling our technology from lab-scale pouch cells to multi-layer prototypes
• Strengthening partnerships with industry leaders to accelerate commercialization
• Engaging early adopters to refine product-market fit projecting “Pre-A” samples and revenue in Q4 2025 and “A” Samples in 2026

Breakthrough Achievements in Q1 2025

Technological Milestones

• Successful pouch cell development: We recently advanced our Al-ion battery from coin cells to functional pouch cells — as planned, a critical milestone achievement towards commercial viability.
• Record energy density: Our aqueous Al-ion system, HydroCellTM, now achieves 450 Wh/kg (approaching our 500 Wh/kg year-end target), while our ionic liquid system, UltraCellTM , demonstrates ultra-fast charging (120C+ rate) and 10,000+ cycle potential.

Strategic Partnerships & Funding

• A Joint Development Agreement (JDA) is being formalized with major partner market leader to optimize cathode and electrolyte formulations and secure our technology IP.
• MOU with Sakuu is underway, exploring dry-printed Al-ion cathodes for next-gen manufacturing.
• Procurement agreements with our components providers are in place, ready to be expanded to pre-production.
• Ongoing discussions with potential early adopters clients and key strategic collaborations.
• Close to $1M secured in total in grants supporting our project from various sources, including the Quebec Government (CQRDA & MEIE).

Team Expansion & Lab Growth

• Tripled our R&D Team from one to three full-time researchers / battery scientists, supported by ÉTS’s scientific team
• Renewed our research agreement for our current lab at ÉTS (with support from INRS) for another 3 years
• Anticipating Q2 completion of our new Lab at ÉTS with equipment for pouch cell manufacturing and accelerating prototype development

Financial & Operational Highlights

While we remain in the R&D phase, our financial position is stable, supported by non-dilutive grants and strategic partnerships as well as cautious, efficient and responsible management of finances, which is part of our company culture. Key updates:

• Stable Supply Chain: All materials are scalable and western sourced, reducing geopolitical risks.
• Capital Efficiency: Grants and collaborations minimize burn rate while maximizing technical progress.
• Path to Revenue: Early customer engagements expected in Q4 2025 / Q1 2026 for prototype testing.
• Accelerator program: Recently completed the Cycle Momentum program with great exposure to VC groups.
• Upcoming grants: New submissions are being assembled for accelerating development of components.
• “Friends and Family” round extended until we announce our key milestones of the first pouch cell (already produced) and signing of our early adopter clients.

What’s Next in 2025?

Our focus for the remainder of the year includes:

• Multi-Layer Pouch Cells: We intend scaling from single-layer to 10+ layer prototypes.
• Material Optimization: Partnering with major provincial and federal battery research institutions and separator suppliers to optimize performance.
• IP Protection: Submit patent applications to secure our IP and having our first technical publication.
• “Pre-A” Samples: Functional prototypes with first revenues projected by Q4 2025 and “A” Samples in projected in 2026.
• Market Discovery: Expanding dialogue with EV/mobility, grid storage, and critical power backup partners for customer feedback.
• Pre industrialization: Continue discussions with technology accelerators to assemble the building blocks of an eventual assembly line.

Closing Thoughts

The energy transition demands better batteries—ones that are safer, cheaper, and truly sustainable. ELEQTRION’s Al-ion technology is proving that this vision is within reach. I want to thank our shareholders, partners, and incredible team for their continued support. Together, we are building the foundation for a new era in energy storage.
Stay tuned for more updates — exciting times lie ahead!

William Reynolds
CEO | ELEQTRION