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Battery X Metals Completes First-Generation Proprietary Battery Adaptor for Tesla Model 3 and Model Y, Marking a Significant Commercial Readiness Milestone for its Patent-Pending Lithium-Ion Battery Rebalancing Platform

Battery X Metals Completes First-Generation Proprietary Battery Adaptor for

Tesla Model 3 and Model Y, Marking a Significant Commercial Readiness

Milestone for its Patent-Pending Lithium-Ion Battery Rebalancing Platform

News Release Highlights:

1. Battery X Metals has successfully completed a first-generation proprietary Tesla Model 3 and Model

Y battery adaptor working prototype, marking a si gnificant commercial readiness milestone for its

patent-pending lithium-ion battery rebalancing platform. The Tesla Model 3 and Model Y represent

one of the world's largest installed electric vehicle platforms and collectively account for more than

half of the U.S. electric vehicle market, with the Model Y representing approximately 34.2% of U.S.

EV sales and the Model 3 approximately 20.2%, reinforcing the strategic importance of compatibility

with these battery architectures

2. The engineering validation program successfully confirmed the Tesla Adaptor's proprietary interface

architecture, including mechanical fitment, dimensional accuracy, electrical interface alignment and

standardized battery pack connectivity. Management believes this establishes a repeatable

engineering framework to support future proprietary adaptor development across additional high-

volume electric vehicle battery platforms.

3. Battery X Metals has commenced the next phase of development focused on advancing the Tesla

Adaptor toward a production-oriented commercial prod uct. As part of this initiative, the Company

has acquired a Tesla Model 3 battery pack for de dicated research and development, engineering

validation and working prototype testing while continuing to expand compatibility across additional

high-volume electric vehicle battery platforms.

VANCOUVER, British Columbia – July 15, 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 that, further to its news release dated January 2, 2026,

the Company's wholly-owned subsidiary, Battery X Rebalancing Technologies Inc. ("Battery X Rebalancing

Technologies"), together with its strategic lithium-ion battery rebalancing hardware and software

development partner, Beijing Pengneng Science & Technology Ltd. (" BJPN"), has successfully completed

development of a first-generation proprietary Tesla Model 3 and Model Y battery adaptor working

prototype (the "Tesla Adaptor").

Development of the First-Generation Tesla Adaptor

Building upon the Company's Tesla battery interface char acterization program, as previously disclosed in

its news release dated January 2, 2026, Battery X Rebalanc ing Technologies, in collaboration with BJPN,

successfully developed the first-generation Tesla Ad aptor working prototype. The prototype represents

the initial physical implementation of the Company's proprietary digital engineering model, designed to

establish a standardized interface with Tesla Model 3 and Model Y battery platforms.

The first-generation Tesla Adaptor was developed as an engineering validation prototype rather than a

commercial production unit. This phase was undertaken to validate the Company's proprietary interface

architecture by demonstrating that its digital engineering design could be successfully translated into a

functional physical assembly capable of reliably interfacing with Tesla battery systems.

The successful completion of this development milestone confirmed key engineering objectives, including

mechanical fitment, dimensional ac curacy, electrical interface alignm ent, and standardized connectivity

with Tesla battery packs. Collectively, these achievements validate the foundational interface architecture

and establish an important engineering platform for the continued development, optimization, and future

commercialization of the Company's battery rebalancing ecosystem.

Commercial Significance

The Tesla Model 3 and Model Y collectively represent one of the largest and most strategically significant

electric vehicle platforms globally. Tesla is expected to surpass 10 million cumulative global vehicle sales

during the third quarter of 2026. 1 Of these cumulative deliveries, the Tesla Model 3 is estimated to

account for approximately 3.50 million vehicles, wh ile the Tesla Model Y is estimated to account for

approximately 5.39 million vehicles.1 Together, the Tesla Model 3 and Model Y are estimated to represent

approximately 8.89 million cumulative vehicle sale s, accounting for approximately 89% of Tesla’s

expected cumulative global deliveries.2

Tesla continues to be the leading electric vehicl e manufacturer in the United States, accounting for

approximately 59.7% of the U.S. electric vehicle market as of January 2026.3 Within that market, the Tesla

Model Y represents approximately 34.2% of all U.S. EV sales, while the Tesla Model 3 represents

approximately 20.2%, collectively accounting for more than half of the U.S. electric vehicle market. 3

Management believes focusing commercialization e fforts on battery architectures supporting these

market-leading vehicles positions the Company's battery rebalancing platform to address one of the

largest installed electric vehicle populations in North America.3

Battery X Metals believes compatibility with thes e high-volume battery architectures represents a

significant commercial readiness milestone in the Co mpany’s broader multi-platform commercialization

strategy, supporting the expansion of its patent-pen ding lithium-ion battery rebalancing platform across

one of the world’s largest installed electric vehicle populations.

Through the development of prop rietary adaptor solutions for le ading electric vehicle battery

architectures, the Company intends to establish a scalable compatibility ecosystem capable of supporting

deployment across automotive service centres, de alership networks, fleet operators, and other

commercial customers. The first-generation Tesla Adaptor represents a foundational milestone in

executing this strategy, enabling standardized inte gration with one of the industry's largest battery

platforms while expanding the addressable market for the Company's battery diagnostics, rebalancing,

and battery lifespan extension technologies.

As millions of electric vehicles transition beyond their original battery warranty coverage, the Company

believes demand for technologies that restore usab le battery capacity, extend battery lifespan, and

reduce total cost of ownership will continue to in crease. By expanding compatibility across high-volume

electric vehicle battery architectures, Battery X Metals believes it is well positioned to participate in the

rapidly emerging battery lifecycle management market.

Next Steps

With completion of the foundational engineering validation phase, the Company has commenced the next

stage of development focused on advancing the Tesla Adaptor toward a production-oriented commercial

product. Future development activities are expected to include continued engineering optimization,

industrial design refinement, material selection, manu facturability, durability enhancement, commercial

product integration and ongoing interface validation to further optimize repeatability, reliability and

compatibility across Tesla Model 3 and Model Y battery platforms.

The Company intends to continue expanding its pr oprietary adaptor portfolio and multi-platform

compatibility across additional high-volume electric vehi cle battery architectures as part of its long-term

commercialization strategy. Manageme nt believes this systematic de velopment approach strengthens

the technical infrastructure supporting broader depl oyment of its patent-pending lithium-ion battery

rebalancing platform while expanding its commercial applicability and serviceable addressable market.

As part of its next phase of development, the Co mpany acquired a Tesla Model 3 battery pack from an

arm's length third party for $500, plus applicable GST, for dedicated research and development purposes.

The battery pack will be used to further refine the commercial version of the Company's proprietary Tesla

Adaptor, conduct additional engineering validat ion, and perform working prototype testing under

representative operating conditions. Management belie ves this in-house testing capability will support

continued product optimization and accelerate deve lopment toward a production-oriented commercial

product.

As part of its broader commercialization strategy, the Company intends to continue advancing its patent-

pending lithium-ion battery rebalancing platform through additional software and hardware

enhancements, engineering validation, product op timization and Underwriters Laboratories (" UL")

certification. Development of the Tesla Adaptor is also expected to continue through additional hardware

refinement, engineering validation and UL certification. The Company is currently evaluating the scope,

timing and anticipated costs associated with these commercialization activities, including engineering,

certification, manufacturing readiness and go-to-mark et initiatives. Commercialization of both the

Company's battery rebalancing platform and the Tesla Adaptor remains subject to the completion of these

development activities, receipt of UL certification, manufacturing readiness, execution of go-to-market

initiatives, the availability of adequate capital resources and other customary commercialization

requirements.

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 2023.4

With cumulative global EV sales from 2015 to 2023 totaling an estimate d over 40 million units, 5 a

significant share of the global EV fleet is expected to exit warranty coverage over the coming years. 6,7

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

outside of their original warranty coverage.6,7 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.8 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 expe rience 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 Ba ttery 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 Tech nologies as a participant in lithium-ion and EV

battery solutions, aiming to tackle the critical ch allenges 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 CleanTechnica, 2 Calculated by the Company based on estimated cumulative Tesla Model 3 and Model Y sales published by CleanTechnica, 3 Edmunds, 4 Rho Motion

– Global EV Sales 2024, 5 IEA Global EV Outlook 2024, 6 IEA, 7 U.S. News, 8 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 batte ry and critical metal

resource exploration and developing next-generation proprietary technologies. Taking a diversified, 360°

approach to the battery metals industry, the Compan y 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) 694-9823

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 rela te to, among other things: the Company's business

objectives, strategies and future plans relating to the continued development, optimization, refinement,

engineering validation, manufacturing readiness and commercialization of its patent-pending lithium-ion

battery rebalancing platform and proprietary batte ry adaptor technology; the significance of the

successful completion of the firs t-generation proprietary Tesla Model 3 and Model Y battery adaptor

working prototype; the anticipated benefits, commer cial significance and scalability of the Company's

proprietary battery adaptor architecture and multi- platform commercialization strategy; the continued

development, validation, refinement, certificatio n and commercialization of the Tesla Adaptor and

additional proprietary battery adaptors for other electric vehicle battery platforms; the Company's ability

to expand compatibility across additional high-volume electric vehicle battery architectures; the

anticipated benefits of compatibility expansion acti vities; the commercial app licability and serviceable

addressable market of the Company's battery lifecyc le management technologies; the advancement of

the Tesla Adaptor toward a production-oriented comme rcial product; the anticipated benefits of the

Company's research and development activities, including engineering validation and working prototype

testing utilizing the Tesla Model 3 battery pack; the evaluation of the scope, timing and anticipated costs

associated with future commercializat ion activities, including engineering, certification, UL certification,

manufacturing readiness, regulatory approvals and go-to-market initiatives; the anticipated growth of the

out-of-warranty electric vehicle market; the expected demand for battery diagnostics, battery rebalancing

and battery lifespan extension tec hnologies; the Company's ability to obtain, maintain and protect

intellectual property rights relating to its propriet ary and patent-pending technologies; the anticipated

commercial performance, customer adoption and market acceptance of the Company's technologies; and

the Company's broader commercialization strategy and participation in the battery lifecycle management

market. Forward-looking statements are based on management's current expectations, estimates,

assumptions and projections that are believed to be re asonable as of the date of this news release,

including assumptions regarding the continued advancement of product development activities; the

successful engineering optimization, validation, refi nement, certification and commercialization of the

Tesla Adaptor and future proprietary battery adaptors; the successful completion of research and

development and engineering validation activities; the successful expansion of compatibility across

additional electric vehicle battery platforms; the completion of UL certification and other required

regulatory or commercial approvals; the continued cooperation of third-party development partners,

manufacturers, suppliers and service providers; the continued growth of electric vehicle adoption and the

out-of-warranty electric vehicle market; the continue d availability and reliability of third-party market

data and industry information referenced herein ; the anticipated demand for battery lifecycle

management solutions; the Company's ability to ob tain, maintain and enforce intellectual property

protection for its proprietary technologies; the availa bility of adequate capital and other resources to

complete commercialization activities; and the Comp any's ability to execute its commercialization

strategy. However, forward-looking 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 forward-looking statements. These risks and

uncertainties include, but are not limited to: tech nical, engineering, manufacturing or operational

challenges; delays or failures in the continued deve lopment, refinement, validation, certification or

commercialization of the Tesla Adap tor, the Company's battery rebalancing platform or additional

proprietary battery adaptors; the possibility that engineering validation activities or prototype testing may

not be replicated in future testing, production environments or commercial applications, and that

successful prototype validation may not result in a co mmercially viable product; challenges associated

with expanding compatibility across additional electric vehicle battery platforms; changes in electric

vehicle technologies, battery architectures, communi cation protocols, batter y chemistries, firmware,

software, industry standards or competitive condition s, including changes to Tesla battery systems that

may require additional engineering, redesign or validation; delays in obtaining UL certification or other

regulatory or commercial approvals, achieving ma nufacturing readiness, executing go-to-market

initiatives, commencing commercial production or ac hieving customer adoption or market acceptance;

reliance on third-party development partners, manufa cturers, suppliers and service providers; risks

relating to the protection, maintenance, enforcement or validity of the Company's intellectual property

rights and patent-pending technologies; the possibility that third-party market data or industry estimates

referenced herein may change or be revised; financing, regulatory, legal and intellectual property risks;

the availability of adequate capital resources to complete commercialization activities; general economic,

market and geopolitical conditions; and othe r risks associated with the development and

commercialization of emerging clean technologies. There can be no assurance that the Company's battery

rebalancing platform or the Tesla Adaptor will succ essfully progress beyond engineering validation to

commercial production, that anticipated commercialization milestones or timelines, including completion

of development activities, certification, manufacturing readiness, regulatory approvals or go-to-market

initiatives, will be achieved, that compatibility with additional battery platforms will be successfully

developed or commercialized, that the Company's technologies will achieve commercial performance,

customer adoption or market acceptance, that adequate capital resources will be available to complete

commercialization activities, or that the Company will successfully commercialize or achieve widespread

adoption of its battery rebalancing platform or pr oprietary battery adaptor technologies. Except as

required by applicable securities laws, the Company undertakes no obligation to update or revise any

forward-looking information to reflect new informat ion, 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 on SEDAR+ for additional risk factors

and further information.