Toronto's NEO Battery Materials just signed its first publicly disclosed drone deal, teaming up with South Korean dronemaker Assetta to build batteries that don't rely on China.
Why it matters: Drones are the new battleground, and batteries are the bottleneck. The companies say the deal is about removing Chinese suppliers from the supply chain.
The details:
NEO and Assetta signed a joint development agreement on July 15.
Goal: swap out Assetta's current Chinese-made batteries for NEO's silicon-enhanced ones.
The push aligns with FEOC rules under the One Big Beautiful Bill Act, which pressure companies to ditch suppliers tied to foreign adversaries.
Assetta builds military-grade VTOL recon drones and fiber-optic drones with LS Cable & System. It was just tapped for South Korea's first Drone Combat Challenge.
What they're saying: Assetta CEO Hyung-Jun Kim says NEO offers "end-to-end battery solutions" flexible enough to keep pace with the drone maker's changing needs.
NEO CEO Spencer Huh calls it more than a vendor relationship, framing it as a long-term collaboration tied to Korea's broader defense strategy.
The bottom line: NEO wants Assetta to be the first domino in a growing lineup of allied drone customers, all steering clear of Chinese battery tech.
