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Battery X Metals Advances Development of Next-Generation Patent-Pending Lithium-Ion Battery Rebalancing Machine with Compatibility Targeting the #1 Selling Electric Vehicle Brand in the United States

Battery X Metals Advances Development of Next-Generation Patent-Pending

Lithium-Ion Battery Rebalancing Machine with Compatibility Targeting the #1

Selling Electric Vehicle Brand in the United States

News Release Highlights:

1. Battery X Metals has advanced the development of its next-generation, patent-pending lithium-ion

battery rebalancing platform by completing a high-resolution 3D scan of a Tesla Model 3 battery

pack, representing an initial step toward expanding compatibility with the #1 selling electric vehicle

brand in the United States.

2. The completed high-resolution 3D scan provides the foundational digital reference required to

design custom adaptor and connector solutions for the Company’s next-generation rebalancing

machine, supporting a compatibility strategy across high-volume electric vehicle platforms as

millions of EVs approach out-of-warranty status over the coming decade.

3. The advancement supports Battery X Metals’ long-term commercialization strategy focused on

extending EV battery remaining lifespan, reducing total cost of ownership, and addressing the

global market for battery diagnostics, rebalancing, and lifecycle-extension technologies as electric

vehicle adoption continues to accelerate.

VANCOUVER, British Columbia – January 2, 2026 – Battery X Metals Inc.

(CSE:BATX)(OTCQB:BATXF)(FSE:5YW0, WKN:A41RJF) (“Battery X Metals” or the “Company”) an energy

transition resource exploration and technology company, announces a meaningful advancement in the

development of its next-generation, patent-pending lithium-ion battery rebalancing technology. Through

its wholly-owned subsidiary, Battery X Rebalancing Technologies Inc. (“Battery X Rebalancing

Technologies”), the Company has completed an important preliminary step toward expanding platform

compatibility with one of the most widely adopted electric vehicle platforms in the world.

As part of its ongoing research and development program, the Company has completed a high-resolution

three-dimensional (3D) scan of a Tesla Model 3 battery pack (the “Tesla Battery Pack”), a vehicle platform

associated with the top-selling electric vehicle brand in the United States. Tesla accounted for

approximately 45% of U.S. EV sales in 2024.¹ The Tesla Battery Pack was obtained at no cost from an arm’s-

length automotive service-center collaboration partner and scanned using a portable 3D scanning system

to support battery-interface analysis and adaptor development. The resulting scan captures precise

geometric and structural data required to digitally model the battery interface and informs the design of

custom connector and adaptor solutions for the Company’s rebalancing platform.

This technical advancement underscores the Company’s methodical adaptor compatibility development

strategy, supported by an expanding library of real-world battery-pack data used to enable physical

interfacing, diagnostics, and rebalancing workflows. The completed scan of the Tesla Model 3 battery pack

provides the foundational digital reference required to begin adaptor and connector engineering work

intended to allow the Rebalancing Machine to physically interface with this specific battery architecture.

Following completion of the scan, the Company plans to provide the digital dataset to its development

partner, Beijing Pengneng Science & Technology Ltd., for further engineering work focused on adaptor

and connector design. This step is expected to support continued development of the Company’s second-

generation rebalancing system and inform broader compatibility strategies across additional high-volume

electric vehicle platforms over time. While no assurance can be given that compatibility will ultimately be

achieved or commercialized, the Company believes this advancement represents a necessary and

deliberate step in its long-term product development roadmap.

Significance of Tesla to the Electric Vehicle Revolution

The strategic relevance of this work is underscored by the scale and influence of Tesla within the global

electric vehicle ecosystem. Tesla has played a central role in reshaping the automotive industry and

accelerating EV adoption worldwide, and remains the largest electric vehicle brand in the United States.1

The Tesla Model 3, in particular, represents one of the largest single EV populations globally, with

cumulative sales estimated at approximately 2.63 million vehicles by the end of the third quarter of 2024.2

As these vehicles continue to age, a growing proportion is expected to exit original battery warranty

coverage over the coming years. By approximately 2032, a significant portion of the Tesla Model 3 fleet

currently on the road is expected to be outside warranty, increasing exposure to battery degradation,

reduced driving range, and costly replacement requirements.2,3

This emerging lifecycle challenge highlights a growing market need for technologies capable of extending

remaining useful battery life, restoring lost performance, and reducing total cost of ownership for EV

owners. With millions of vehicles approaching or entering out-of-warranty status, demand for advanced

battery diagnostics, rebalancing, and second-life solutions is expected to increase materially.4 The

Company is developing its patent-pending rebalancing platform with the objective of addressing this need

by correcting cell-level imbalances that degrade battery performance over time, potentially extending the

remaining useful life of existing battery packs.

The Company believes that advancing compatibility work with high-volume EV platforms such as the Tesla

Model 3 represents a meaningful step toward positioning its patent-pending rebalancing technology

within a growing addressable market. As the Company continues to refine its hardware, software, and

interfacing capabilities, management remains focused on building a scalable platform designed to support

the evolving needs of the global electric vehicle ecosystem.

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 2023.5

With cumulative global EV sales from 2015 to 2023 totaling an estimated over 40 million units,6 a

significant share of the global EV fleet is expected to exit warranty coverage over the coming years. 7,8

By 2031, nearly 40 million electric, plug-in hybrid, and hybrid vehicles worldwide are anticipated to fall

outside of their original warranty coverage.7,8 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 requirements.9 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: Pioneering 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, representing a decrease of

approximately 35%. Following rebalancing using Battery X Rebalancing Technologies’ rebalancing

technology, the battery module’s discharge capacity was restored to 70.94Ah, representing the recovery

of approximately 99% of the capacity lost due to cell imbalance.

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.

The Results disclosed herein are based on preliminary trial conditions and may not be representative of

all vehicle models or usage scenarios. Results may vary depending on vehicle type, battery type and

condition, driving behavior, usage, and operating environment.

1 Edmunds, 2 CleanTechnica, 3 RecurrentAuto, 4 Tesla Inc. 5 Rho Motion – Global EV Sales 2024, 6 IEA Global EV Outlook 2024, 7 IEA, 8 U.S. News, 9 Recurrent Auto

About Battery X Metals Inc.

Battery X Metals (CSE:BATX) (OTCQB:BATXF) (FSE:5YW0, WKN: A41RJF) is an energy transition resource

exploration and technology company committed to advancing domestic battery and critical 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 securities laws.

Forward-looking statements in this release relate to, among other things: the Company’s objectives and

plans with respect to the development, refinement, and expansion of compatibility for its patent-pending

lithium-ion battery rebalancing hardware and software platform; the anticipated benefits and strategic

significance of completing a high-resolution 3D scan of a Tesla Model 3 battery pack; the intended use of

scan data to support adaptor and connector design development; the ability of the Company’s rebalancing

machine to interface with specific electric vehicle battery architectures; the advancement of the

Company’s second-generation rebalancing system; the scalability of the Company’s compatibility

development strategy across additional high-volume electric vehicle platforms; the future size and age

profile of the Tesla Model 3 vehicle population; the potential market opportunity associated with the

growing population of out-of-warranty electric vehicles; the expected demand for battery diagnostics,

rebalancing, and lifecycle-extension technologies; the ability of the Company’s technology to extend

battery lifespan, restore performance, reduce total cost of ownership, or mitigate the need for full battery

replacement; and the Company’s broader strategic objectives to support battery lifecycle extension and

sustainable electric mobility solutions. Forward-looking statements are based on management’s current

expectations, estimates, assumptions, and projections that are believed to be reasonable as of the date

of this news release. However, such statements are inherently 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: the ability to successfully design, engineer, and implement adaptor and connector

solutions compatible with specific EV battery platforms; technical, engineering, or operational challenges

encountered during further development, testing, or validation; variability in results obtained from future

testing or real-world applications; limitations associated with early-stage research and development

activities; the feasibility of achieving reliable, repeatable, and scalable compatibility across multiple EV

platforms; the ability to advance compatibility work from preliminary development to commercial

deployment; market acceptance of the Company’s rebalancing technology; competitive developments;

changes in vehicle manufacturer product strategies or warranty practices; changes in EV technology,

battery architectures, or manufacturer specifications; regulatory developments; availability of funding;

and general economic, market, and geopolitical conditions. Forward-looking statements reflect

management’s beliefs, assumptions, and expectations only as of the date hereof and are not guarantees

of future performance. There can be no assurance that compatibility with any specific electric vehicle

platform will be achieved or commercialized, that adaptor or connector designs will perform as intended

in real-world applications, or that the Company’s rebalancing technology will achieve widespread

commercial adoption. Except as required by applicable securities laws, the Company undertakes no

obligation to update or revise any forward-looking information to reflect new information, future events,

or otherwise. Readers are cautioned not to place undue reliance on forward-looking statements and are

encouraged to consult the Company’s continuous disclosure filings available under its profile at

www.sedarplus.ca for additional risk factors and further information.