Dragonfly Energy Holdings Corp. “Dragonfly Energy” or the “Company”), an industry leader in energy storage, announced today the results from a Cost & Sustainability Assessment conducted by Sphere Energy, a global battery testing and advisory firm. The assessment highlights significant cost and sustainability improvements made by Dragonfly Energy’s patented dry electrode battery manufacturing process when compared to the state-of-the-art (slurry cast) production process currently employed by conventional battery cell manufacturers. Results and findings presented within the assessment were based on specific data from Dragonfly Energy’s cell manufacturing pilot line located in Northern Nevada whilst covering a global supply chain.

The sustainability assessment concluded that the Company’s dry electrode battery manufacturing process resulted in a 9% reduced carbon footprint for cell manufacturing with no toxic NMP solvent required, resulting in a significantly more sustainable process. This sustainability advantage is further augmented by a 71% reduction in energy usage during electrode manufacturing, using the Company’s process (spray drying, coating, calendaring) compared to standard cell manufacturing operations (slurry casting, drying, calendaring). By removing the need for large and expensive drying ovens, Dragonfly Energy’s manufacturing process requires 22% less square footage. The culmination of these advantages results in a 25% reduction in emissions from energy use, making Dragonfly Energy’s manufacturing process more sustainable and much more environmentally friendly as compared to conventional manufacturing methods.

In addition to the energy savings, the cost assessment found Dragonfly Energy’s process to be highly cost-effective with an estimated 5% savings (depending on cell chemistry) on process-related costs compared to conventional methods. Importantly, these savings were calculated without the additional cost benefits provided by domestically manufacturing battery cells such as IRA tax credits, tariffs, and shipping.

“The findings from the Sphere Energy Cost & Sustainability Assessment support expectations that our innovative dry electrode process results in significant energy and cost efficiencies while promoting environmental sustainability,” Dr. Denis Phares, Chief Executive Officer of Dragonfly Energy, said. "Through extensive research and development, we believe Dragonfly Energy is positioned to deliver a transformative cell manufacturing technology, which has the potential to fundamentally reshape the lithium-ion battery industry's approach to viable energy storage solutions. We believe this focus on domestic innovation is paramount for the U.S. to achieve self-sufficiency in battery production. A scalable, cost-competitive, and environmentally responsible energy storage solution is critical, and the Sphere Energy data reinforces and validates our progress towards this critical goal of North American battery cell manufacturing independence."

The dry electrode battery manufacturing process Dragonfly Energy employs uses a patented spray coating technology to adhere the anode and cathode electrodes, eliminating the need for large, energy-intensive equipment such as slurry coaters, conveyor dryers, and NMP processing equipment. This process is chemistry agnostic, allowing for the various applications, such as electric vehicles, consumer electronics, and energy storage, which is expected to enable the Company to expand into new markets and to achieve its goal of domestically producing nonflammable all-solid-state battery cells.