TORONTO, Ontario — February 18, 2026 — Leads & Copy — NEO Battery Materials Ltd. (TSXV: NBM) (OTC: NBMFF) announced the successful completion of a live surveillance drone field demonstration of its newly developed high-performance drone battery cells, called the “NBM Drone Cell.” The test confirmed that previously disclosed cell-level performance improvements translate directly into real-world operational gains.
In a live flight test using a Korean original equipment manufacturer (OEM) customer’s commercial surveillance drone product, the NBM Drone Cell delivered a 98% increase in average flight time compared to the mass-produced Chinese drone battery benchmark. Flight duration extended from 29.9 minutes to 59.2 minutes under equivalent operating parameters. The test was conducted at approximately 70 feet under cold-weather conditions of -3 to -5 degrees Celsius (23 – 26 F).
The prolonged flight time was driven by the NBM Drone Cell’s specifications of 755 Wh and 260 Wh/kg at the pack-level, representing energy capacity and density enhancements of 55% and 29%, respectively, compared to the Chinese benchmark. The company said that the high-quality manufacturing produced a more stable voltage profile, enabling low-voltage operations while ensuring safety against power loss and operational failure. To maintain equivalent thrust/lift and power characteristics during flight, NBM Drone Cell packs matched the discharge rate and current performance of the benchmark battery.
According to a spokesperson of the South Korean drone manufacturer, the live field test exceeded internal expectations and metrics on what high-performance customization could bring for drone products. At reasonable costs, NBM Drone Cells initially proves that high-capacity, high-stability voltage batteries can significantly enhance drone flight time and mission endurance, while maintaining high safety standards. The company believes that the overall demonstration can raise the competitive edge within the industrial, emergency response, precision agriculture, and defense drone markets where extended operational durability is critical.
General (Ret.) C.J. Ko, Director of NEO, stated that the demonstration advances NEO’s objective of establishing a competitive, non-Chinese battery solution for drones and unmanned systems (UAS), where supply chain and performance constraints remain key procurement considerations for OEMs, governments, and the military. He added that this field validation of the NBM Drone Cells establishes a business case for defense acquisition as NEO’s technology materially extends mission capabilities without requiring drone redesigns.
The field test showcased improvements in efficiency metrics. Flight time-per-capacity increased by approximately 28%, and flight time-per-weight improved by approximately 80%, indicating more effective energy utilization at the system-level. Silicon anode integration enabled a 50% increase in charging rate from 0.2Ah/min to 0.31Ah/min under standard conditions, with gains of up to 150% (0.5Ah/min) achievable under ultra-fast charging protocols.
NEO is advancing towards NBM Drone Cell prototype-to-commercial readiness by integrating battery management system (BMS) software and optimizing pack-level casing materials to further enhance energy density and thermal performance. The Company will expedite customer and government evaluations for commercial integration and expand engagement with drone and UAS manufacturers in the U.S. and NATO countries.
The company also announced the appointment of Ms. Nancy Zhao as Chief Financial Officer. As part of compensation to Ms. Zhao, the Company has granted incentive stock options to acquire an aggregate of 120,000 common shares and has issued 150,000 restricted stock units in accordance with the Company’s Omnibus Equity Incentive Plan.
Drone and UAS applications represent a key catalyst segment within the global lithium-ion battery market, which was estimated at approximately US $9.1 billion in 2025 and is projected to exceed US $29 billion by 2032.
Source: NEO Battery Materials Ltd.
