Market Overview

Silatronix Announces Receipt of Commercial Orders for OS3 Electrolyte Material

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Silatronix®, Inc., the global leader in organosilicon (OS)
electrolyte materials, is announcing receipt of commercial orders from
various customers in North America and China for its OS3®
product, a lithium-ion battery ("LiB") electrolyte co-solvent. Initial
shipments of Silatronix OS3 to these customers are scheduled for 3rd
quarter of 2018.

From its portfolio of OS advanced functional solvents, Silatronix has
qualified OS3 as its first commercial product in the LiB market. The
customers currently placing orders for OS3 will be using the material in
LiBs for multiple applications, including military, drone, and consumer
electronic products. In total, Silatronix has OS3 design evaluations in
process with over 35 organizations in the global LiB industry.

"The stabilizing benefits of OS3 at high voltage and high operating
temperature are enabling a wider range of LiB cell capability for our
customers' applications," said Carl Thoemmes, VP Sales & Marketing. "We
are excited for the successful launch of OS3 and are now focused on
expanding our team and manufacturing capability to support the growing
Silatronix customer base."

OS3 offers a unique functionality in LiB electrolyte that stabilizes
lithium salt and prevents its decomposition. This bulk electrolyte
functionality allows OS3 to be applied in all commonly used LiB anode
and cathode combinations produced today. Initial OS3 shipments will be
used in a variety of LiB chemistries, including LCO for drones and
consumer electronic products, NCA for military applications, and LFP for
mobility. Additionally, some of these systems are already utilizing
silicon-containing anode materials. Future shipments will support
NMC-graphite and NMC-silicon systems for automotive use.

"The market for OS3 is exciting because it's so diverse and not limited
to just one LiB chemistry or application," said Mark Zager, Silatronix
CEO. "We see a viral adoption pattern emerging with OS3, particularly
with silicon-anode systems. Silicon anodes really challenge electrolyte
stability, and this is exactly where our customers report seeing the
greatest benefit from adding OS3 to their electrolytes."

Silicon anodes are one part of the multi-variable materials technologies
pushing to improve LiB energy density. The latest generation of high
energy anode and cathode systems rapidly degrade traditional LiB
electrolytes. OS3 enabled electrolytes provide the stability needed to
make these systems viable for their intended applications.

LiBs are the fastest growing segment in the battery industry with
current production volume expected to grow by a factor of four by 2025.
Silatronix believes commercial opportunities for its portfolio of OS
electrolyte products could exceed US$1bn in this timeframe.

About OS3:

OS3 is the latest generation in performance enhancing organosilicon
electrolyte material available from Silatronix. OS3 provides significant
improvement in LiB cell performance when added to the electrolyte
formulation in concentrations of 1-5%. OS3 works by stabilizing lithium
salt in solution and helping to prevent the decomposition that normally
occurs in high voltage and high temperature battery operation. It is the
only commercially available material that prevents LiPF6 breakdown at
high voltage and high temperature, while also eliminating hydrofluoric
acid (HF) from LiB cells. This results in reduced swelling, longer cycle
life, and wider operating temperature capability.

About Silatronix:

Silatronix is commercializing a new class of patented materials based on
organosilicon (OS) compounds for use in energy storage devices,
especially electrolytes for lithium-ion batteries (LiBs). OS compounds
are environmentally friendly, non-flammable, high temperature materials
suited for use as electrolytes, binders, and coatings in energy storage
devices. In LiBs, OS materials can enhance thermal stability and safety,
enable use of high energy density anodes and high voltage cathodes, and
be cost-effectively produced using existing manufacturing processes for
silicone polymers. Visit www.silatronix.com
for more information.

For questions or additional information about this press release, please
contact Carl Thoemmes of Silatronix at 608-467-5626.

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