Star Metro - Battery X Metals Announces Commercial Revenue Share Agreement for Next-Generation Lithium-Ion Battery Rebalancing Machine Following Estimated Driving Range Increase of ~255 km of Light-Duty Electric Vehicle Model with Severe Cell Imbalance, Restoring Battery Range to ~295 km in Preliminary Trial

VANCOUVER, BC / ACCESS Newswire / July 18, 2025 / Battery X Metals Inc. (CSE:BATX)(OTCQB:BATXF)(FSE:5YW, WKN:A40X9W)("Battery X Metals" or the "Company") an energy transition resource exploration and technology company, announces that, further to its news release dated July 4, 2025, in which the Company reported a significant driving range increase in a Class 3 light-duty electric vehicle (the "Electric Truck") following a real-world trial using its patent-pending second-generation lithium-ion battery rebalancing hardware and software platform ("Prototype 2.0"), its wholly owned subsidiary, Battery X Rebalancing Technologies Inc. ("Battery X Rebalancing Technologies"), has entered into a Commercial Revenue Share Agreement (the "Revenue Share Agreement") with an arm's length, independent automobile service center (the "Automotive Service Center") based in Vancouver, BC, specializing in servicing out-of-warranty Tesla vehicles.

This collaboration marks the first commercial deployment of Battery X Rebalancing Technologies' patent-pending second-generation lithium-ion battery rebalancing hardware and software platform, Prototype 2.0, in a real-world customer environment. Further to the Company's July 4, 2025 news release, the Agreement builds on the success of a preliminary real-world performance trial, in which Prototype 2.0 restored a Class 3 Electric Truck with severe battery cell imbalance from an estimated driving range of approximately 40 kilometers to approximately 295 kilometers-representing a 255-kilometer increase and a 637.5% improvement in battery range under no-load conditions (summary of the Results, below).

This Revenue Share Agreement represents a critical step in Battery X Rebalancing Technologies' ongoing product development and commercialization roadmap. While Prototype 2.0 remains in its product development and validation phase, the successful rebalancing of the Electric Truck revealed an immediate market opportunity to service similar vehicles experiencing cell imbalance and range degradation. The validation phase includes continued field testing, refinement of the software architecture, implementation of data retention and analysis features, and the development of vehicle-specific adapters to expand compatibility across a wider range of EV platforms, including Tesla Model 3 and Model X (as disclosed in the Company's news release dated May 9, 2025 , and other electric vehicles.

Through the Revenue Share Agreement with the Automotive Service Center, Battery X Rebalancing Technologies is now positioned to generate near-term revenue by deploying Prototype 2.0 in a live commercial setting, without incurring any direct operating, labor, or overhead costs. This cost-efficient arrangement allows Battery X Rebalancing Technologies to pursue technical and product development validation while meeting emerging market demand. Insights gained through this collaboration are expected to inform the design and capabilities of future-generation rebalancing machines and support Battery X Rebalancing Technologies' longer-term commercialization strategy.

"This Revenue Share Agreement marks a meaningful milestone in our product development and validation roadmap," said Massimo Bellini Bressi, CEO of Battery X Metals. "It enables us to deploy Prototype 2.0 in a real-world commercial setting while continuing to refine the platform's architecture, expand multi-vehicle compatibility, and collect operational insights that will inform future product iterations. Although we remain in the product development and validation phase, this collaboration provides strong early proof-of-concept and allows us to assess market demand and customer adoption without incurring direct operational costs."

The initial focus of the Revenue Share Agreement is on servicing Electric Trucks, where Prototype 2.0 has demonstrated successful outcomes in preliminary trials. The Revenue Share Agreement may also extend to other electric vehicle platforms, including the Nissan Leaf, which has already been successfully validated, and potentially Tesla models, subject to further compatibility validation. This phased approach enables Battery X Rebalancing Technologies to meet immediate demand for electric vehicles that have already been validated, while continuing to developing compatibility with additional electric vehicle platforms prior to expanding the scope of its rebalancing services.

As previously disclosed in the Company's news release dated September 27, 2024, Battery X Rebalancing Technologies paid $200,000 to Beijing Pengneng Science & Technology Ltd. for the development and production of Prototype 2.0. While no direct operating costs will be incurred by Battery X Rebalancing Technologies under the Agreement, this investment represents initial research and development (R&D) expenditures. The Company anticipates that commercial manufacturing costs for future production units will be significantly lower.

The Revenue Share Agreement will operate in parallel with the parties' existing Scope of Services Agreement (the "Scope of Services Agreement"), as disclosed in the Company's news release dated May 9, 2025. The Scope of Services Agreement is focused on validating Battery X Rebalancing Technologies' proprietary rebalancing processes and Prototype 2.0. Under this agreement, the Automotive Service Center supports pre- and post-rebalancing diagnostics-initially centered on Tesla battery packs, while also extending validation efforts to additional EV platforms, including the Nissan Leaf, the second most common out-of-warranty electric vehicle in the United States, which was successfully validated as disclosed in the Company's news release dated May 30, 2025, and the Electric Truck.

These activities are intended to inform the development of standardized operating procedures (SOPs) and further demonstrate and enable the platform's compatibility across multiple EV brands. The parties are also collaborating on battery connector port integration, with Battery X Rebalancing Technologies granted facility access for equipment storage and controlled testing. The Scope of Services Agreement carries no financial obligation and is structured to enable dedicated technical validation in support of future commercial scale-up.

The Revenue Share Agreement is anticipated to complement ongoing technical initiatives while enabling Battery X Rebalancing Technologies to assess market demand and validate proof-of-concept in a live, revenue-generating environment. This early-stage collaboration provides valuable insights into service delivery, operator training, baseline pricing, and customer adoption dynamics-helping inform Battery X Rebalancing Technologies' broader commercialization strategy and potentially contributing to the development of a scalable business model over time.

Terms of the Agreement

Under the terms of the Revenue Share Agreement, Battery X Rebalancing Technologies will provide the Automotive Service Center with access to Prototype 2.0 at its primary service location for the purpose of offering lithium-ion battery rebalancing services to customers. Battery X Rebalancing Technologies will receive a fee equal to twenty percent (20%) of the Gross Rebalancing Service Price (defined herein) (the "BATX Fee") for each completed rebalancing procedure, plus applicable federal and provincial sales taxes on the BATX Fee amount. Battery X Rebalancing Technologies will not incur any direct labour, overhead, or operating costs under the Revenue Share Agreement.

For purposes of the Revenue Share Agreement, the "Gross Rebalancing Service Price" is defined as the total amount billed by the Automotive Service Center to the customer for the rebalancing service, excluding taxes and excluding any Shop-Supplied Fee (defined herein). For purposes of the Revenue Share Agreement, the "Shop-Supplied Fee" refers to a separate charge of up to five percent (5%) of the Gross Rebalancing Service Price, which may be added by the Automotive Service Center to cover costs such as shop materials and credit card processing fees. Battery X Rebalancing Technologies is not entitled to any portion of the Shop-Supplied Fee, which shall be retained entirely by the Automotive Service Center.

Prototype 2.0 remains the exclusive property of Battery X Rebalancing Technologies and is classified as a working prototype that supports the Battery X Rebalancing Technologies' broader research, development, validation, and commercialization roadmap. Battery X Rebalancing Technologies retains all rights, title, and interest in and to any data, diagnostic results, or performance outputs generated through its use. The Revenue Share Agreement provides Battery X Rebalancing Technologies with the right to reclaim Prototype 2.0 at any time upon not less than 24 hours' written notice.

The Automotive Service Center is required to provide monthly statements detailing all completed rebalancing procedures by the third business day of each calendar month. Based on this statement, Battery X Rebalancing Technologies will issue an invoice for the applicable BATX Fees plus taxes. Payment is due no later than the fifth business day of the same month. Any undisputed amount remaining unpaid after that time will accrue interest at a rate of 2.0% per month (24% per annum), compounded monthly.

The Revenue Share Agreement will remain in effect until terminated by either party upon thirty days' written notice. Upon termination, the Automotive Service Center will be required to return Prototype 2.0 in good working condition and remit any outstanding BATX Fees, if applicable.

Electric Truck Real World Rebalancing Trial Results

Further to the Company's news release dated July 4, 2025, Battery X Rebalancing successfully completed a real-world driving trial demonstrating a significant increase in estimated driving range for a fully electric, Class 3 commercial electric vehicle, or light-duty electric vehicle (the "Electric Truck"), following a full battery rebalancing process using Prototype 2.0.

As part of its ongoing performance validation program for Prototype 2.0, Battery X Rebalancing Technologies recently conducted a series of real-world road tests on a rebalanced Electric Truck to evaluate post-rebalancing driving range and battery efficiency. The Electric Truck was supplied by an authorized Canadian distributor of the Electric Truck (the "Electric Truck Authorized Distributor") and, as represented by the Electric Truck Authorized Distributor, had previously demonstrated a significantly degraded driving range of approximately 40 kilometers per full charge caused by significant natural cell imbalance caused by real-world conditions.

In response to this battery capacity performance deficiency, Battery X Rebalancing Technologies performed a battery rebalancing procedure on the Electric Truck utilizing Prototype 2.0, as initially disclosed in the Company's news release dated June 6, 2025. During the associated rebalancing trial (the "Rebalancing Trial"), Battery X Rebalancing Technologies successfully completed a full rebalancing process on a 144-cell lithium-ion battery pack composed of lithium nickel manganese cobalt oxide (NMC) chemistry, which had exhibited substantial imbalance attributable to real-world operating conditions. The Rebalancing Trial demonstrated complete (100%) recovery of imbalance-related capacity loss and yielded a 37.7% increase in the Rated Capacity (as defined in the June 6, 2025 news release) of the Electric Truck's battery pack.

The Results

Following completion of the rebalancing procedure, Battery X Rebalancing Technologies conducted a series of controlled real-world performance evaluations (each, a "Trial" and collectively, the "Battery Range Performance Trials") on the Electric Truck for the purpose of assessing post-rebalancing improvements in battery range and overall energy efficiency under actual operating conditions. In the first Trial, the Electric Truck traveled a total distance of 41 kilometers, utilizing approximately 14% of its available battery capacity, while operating across a combination of highway and city driving environments. In the second Trial, the vehicle completed a distance of 107.3 kilometers while consuming approximately 35% of its battery capacity, under similarly mixed driving conditions. The third Trial, conducted exclusively under city driving conditions, demonstrated that the vehicle traveled 58.2 kilometers while utilizing approximately 21% of its available battery charge (collectively, the "Results").

The Results demonstrate a material improvement in the estimated driving range and effective battery capacity of the Electric Truck. Specifically, post-rebalancing performance testing indicates an estimated driving range of approximately 295 kilometers per full charge under no-load conditions. These figures represent an increase of up to 255 kilometers in driving range under no-load conditions, corresponding to an approximately 637.5% improvement of battery driving range, as compared to the pre-rebalancing range of approximately 40 kilometers. The Results affirm the technical efficacy and commercial relevance of Battery X Rebalancing Technologies' proprietary rebalancing process and support its broader applicability within light-duty electric vehicle fleets and other commercial electric transportation use cases.

The Electric Truck parent company has represented that the Electric Truck's expected driving range under maximum payload conditions is approximately 290 kilometers. Battery X Rebalancing Technologies' Battery Range Performance Trials yielded an estimated range of approximately 295 kilometers under no-load conditions following rebalancing. Although these figures were obtained under different load scenarios, the close alignment between the Electric Truck Authorized Distributor's reported range and the post-rebalancing estimate supports the reliability of Battery X Rebalancing Technologies' testing methodology. Furthermore, the Results underscore the potential of Battery X Rebalancing Technologies' rebalancing process to restore battery performance to levels consistent with the high end of manufacturer-reported specifications.

The Battery Range Performance Trials were performed under no-load conditions; it is relevant to note that payload can have an effect on energy consumption and overall driving range. This consideration is consistent with widely recognized industry dynamics and is disclosed to provide a complete and transparent understanding of factors that may influence real-world vehicle performance. Range may vary based on payload, terrain, driving behavior, and other operational conditions.

These performance outcomes further validate the effectiveness and market relevance of Battery X Rebalancing Technologies' proprietary rebalancing solution in restoring degraded battery capacity and materially extending the remaining useful life of commercial electric vehicle batteries. The Company believes these results provide compelling technical validation in support of Prototype 2.0's broader commercial deployment, particularly in fleet environments where range reliability, battery lifespan longevity, and total cost of ownership are mission-critical considerations.

Significance of Results & Market Opportunity for the Electric Truck

The Results of the Rebalancing Trial and the Battery Range Performance Trials collectively demonstrate that Prototype 2.0 is capable of effectively rebalancing lithium-ion battery packs exhibiting significant, naturally occurring cell imbalance. This successful outcome builds upon previously disclosed validation milestones achieved by Battery X Rebalancing Technologies, including third-party technical validation conducted by the National Research Council of Canada (as referenced below), as well as the Company's news release dated May 30, 2025, announcing the successful rebalancing of a naturally imbalanced Nissan Leaf battery pack-the second most common out-of-warranty electric vehicle platform in the United States.

Importantly, the Results not only validate the technical efficacy of Prototype 2.0 in an Electric Truck application, but also demonstrate its potential to recover substantial lost battery capacity resulting from cell imbalance. This performance reinforces the relevance of the Company's patent-pending technology in practical, real-world scenarios and highlights the broader need for scalable, cost-effective battery recovery solutions. The Battery Range Performance Trials further substantiates the commercial viability of Prototype 2.0 as a solution to extend the remaining useful life of aging battery packs in commercial electric vehicle fleets.

The Electric Truck and associated Electric Truck battery pack were supplied to Battery X Rebalancing Technologies at no cost for testing and evaluation by the Electric Truck Authorized Distributor, who advised that it owns and operates a fleet of approximately 20 Electric Trucks (the "Electric Truck Fleet"). According to the Electric Truck Authorized Distributor, multiple vehicles within the Electric Truck Fleet have exhibited material battery degradation and capacity loss attributable to cell imbalance. The Rebalancing Trial and the Battery Range Performance Trials were undertaken in response to the Electric Truck Authorized Distributor's request for a viable alternative to full battery replacement, which it advised may be financially prohibitive on a fleet-wide basis.

The objective of the Rebalancing Trial and the Battery Range Performance Trials was to determine whether Prototype 2.0 could effectively restore functional battery performance in a degraded battery unit sourced from the Electric Truck Fleet. Upon successful rebalancing, the Battery Range Performance Trials further aimed to quantify the extent of recovered battery capacity in terms of estimated driving range. The positive Results are expected to inform and support ongoing discussions with the Electric Truck Authorized Distributor regarding the potential deployment of the rebalancing solution across its broader fleet, with the goal of extending battery life and mitigating the operational and financial impact of premature battery replacements.

Battery X Rebalancing Technologies has been informed by the Electric Truck Authorized Distributor that a substantial number of similar electric trucks are currently in operation across various markets, including those held by the Electric Truck's parent company, authorized distributors, commercial fleet operators, and private owners. Many of these vehicles are reportedly experiencing battery degradation symptoms consistent with cell imbalance. This feedback underscores a broader market opportunity for Battery X Rebalancing Technologies to provide a scalable, cost-effective rebalancing solution aimed at extending battery life and reducing total cost of ownership for commercial EV stakeholders.

In conjunction with the Rebalancing Trial and the Battery Range Performance Trials, Battery X Rebalancing Technologies is currently advancing the development of standardized operating procedures ("SOPs") tailored to the Electric Truck Battery Pack, in addition to refining user interface and workflow enhancements within Prototype 2.0. The Company is also actively pursuing a commercial manufacturing agreement to support scalable production and deployment of its rebalancing platform. These activities are intended to further the Company's broader commercialization strategy, which is not limited to any single third-party opportunity. The Electric Truck-specific SOPs, however, are being developed in direct response to the successful Battery Range Performance Trials and the interest expressed by the Electric Truck Authorized Distributor.

While the execution of the Revenue Share Agreement with the Automotive Service Center represents the first potential revenue-generating arrangement for Battery X Rebalancing Technologies, there can be no assurance that additional commercial agreements with the Electric Truck Authorized Distributor or other third parties will be entered into at this time. Although the Company remains encouraged by the results of the Rebalancing Trial and Battery Range Performance Trials, any future commercial arrangements will be subject to further technical validation, the negotiation of mutually acceptable terms, and completion of operational readiness milestones.

The Problem: Rising EV Adoption Presents New Battery Lifecycle Challenges

In 2024, global EV sales reached approximately 17.1 million units, representing a 25% increase from 2023¹. With cumulative global EV sales from 2015 to 2023 totaling an estimated over 40 million units², a significant share of the global EV fleet is expected to exit warranty coverage over the coming years.

By 2031, nearly 40 million electric, plug-in hybrid, and hybrid vehicles worldwide are anticipated to fall outside of their original warranty coverage^3,4. This projection is based on current EV adoption figures and standard industry warranty terms, and underscores a growing risk for EV owners facing battery degradation, reduced capacity, and costly replacement requirements⁵. As the global EV fleet continues to expand, the demand for technologies that extend battery life, reduce long-term ownership costs, and support a sustainable transition to electric mobility is increasing.

The Solution: Next-Generation Technologies to Support Lithium-Ion Battery Longevity

Battery X Rebalancing Technologies' proprietary software and hardware technology aims to address this challenge by extending the lifespan of EV batteries. This innovation is being developed with the aim to enhance the sustainability of electric transportation and the goal to provide EV owners with a more cost-effective, environmentally friendly ownership experience by reducing the need for costly battery replacements.

Battery X Rebalancing Technologies' rebalancing technology, validated by the National Research Council of Canada ("NRC"), focuses on battery cell rebalancing. The NRC validation demonstrated the technology's ability to effectively correct cell imbalances in lithium-ion battery packs, recovering nearly all lost capacity due to cell imbalance. The validation was conducted on battery modules composed of fifteen 72Ah LiFePO₄ cells connected in series. The cells were initially balanced to a uniform state of charge (SOC), with a measured discharge capacity of 71.10Ah. In the validation test, three of the fifteen cells were then artificially imbalanced-one cell was charged to a 20% higher SOC, and two cells were discharged to a 20% lower SOC-resulting in a reduced discharge capacity of 46.24Ah, following rebalancing using Battery X Rebalancing Technologies' rebalancing technology.

These advancements establish Battery X Rebalancing Technologies as a participant in lithium-ion and EV battery solutions, aiming to tackle the critical challenges of capacity degradation of battery packs and expensive replacements. By extending the lifecycle of battery materials within the supply chain, Battery X Rebalancing Technologies aims to support the energy transition and promote a more sustainable future.

^{1 Rho Motion - Global EV Sales 2024, 2 IEA Global EV Outlook 2024, 3 IEA, 4 U.S. News, 5 Recurrent Auto}

About Battery X Metals Inc.

Battery X Metals (CSE:BATX)(OTCQB:BATXF)(FSE:5YW, WKN:A40X9W) is an energy transition resource exploration and technology company committed to advancing domestic and critical battery metal resource exploration and developing next-generation proprietary technologies. Taking a diversified, 360° approach to the battery metals industry, the Company focuses on exploration, lifespan extension, and recycling of lithium-ion batteries and battery materials. For more information, visit batteryxmetals.com.

On Behalf of the Board of Directors

Massimo Bellini Bressi, Director

For further information, please contact:

Massimo Bellini Bressi
Chief Executive Officer
Email: [email protected]
Tel: (604) 741-0444

Disclaimer for Forward-Looking Information

This news release contains forward-looking statements within the meaning of applicable Canadian securities laws. Forward-looking statements in this release relate to, among other things: the commercial deployment and performance of Prototype 2.0; the terms and benefits of the Commercial Revenue Share Agreement with the Automotive Service Center; the expected generation of revenue without direct operating costs; the implications of the real-world Electric Truck rebalancing trial and its reported driving range improvements; the broader technical capabilities and commercial potential of Prototype 2.0; ongoing software, workflow, and compatibility validation across additional EV platforms including Nissan Leaf and Tesla models; the potential to expand deployment across the Electric Truck Authorized Distributor's fleet; anticipated market demand for the Company's battery rebalancing services; the continued development and implementation of standardized operating procedures (SOPs); the pursuit and execution of a commercial manufacturing agreement; and the Company's ability to offer scalable, cost-effective rebalancing solutions for aging EV batteries and out-of-warranty vehicles globally. These forward-looking statements reflect management's current beliefs, expectations, and assumptions as of the date of this news release, and are based on a number of factors and assumptions believed to be reasonable at the time such statements are made, including but not limited to: assumptions regarding lithium-ion battery performance and chemistry; the repeatability of Prototype 2.0 results across different EV platforms and use cases; the operational readiness of partners and service providers; the Company's ongoing contractual relationships with partners and service providers; the availability of vehicles requiring rebalancing services; and the Company's ability to refine and scale its rebalancing platform for commercial production and deployment. Forward-looking statements are subject to known and unknown risks, uncertainties, and other factors that may cause actual results, performance, or achievements to differ materially from those expressed or implied by such statements. These risks and uncertainties include, but are not limited to: delays in product validation or commercialization; variability in real-world vehicle performance; inability to replicate initial results; failure to secure additional commercial agreements or customers; market adoption risk; evolving regulatory conditions; manufacturing or supply chain limitations; intellectual property challenges; and general business, economic, competitive, political, or social uncertainties. There can be no assurance that the Company will achieve commercial adoption of Prototype 2.0, secure additional deployments or fleet partnerships, or generate revenue as anticipated. Readers are cautioned not to place undue reliance on forward-looking statements. Except as required by applicable securities laws, Battery X Metals Inc. undertakes no obligation to revise or update any forward-looking statements to reflect future events or circumstances. Additional risk factors may be found in the Company's continuous disclosure filings available under its profile at www.sedarplus.ca.

SOURCE: Battery X Metals

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Ch.Levesque--SMC