Battery X Metals Inc., an energy transition resource exploration and technology company, has announced the successful completion of a first-generation proprietary battery adaptor working prototype designed for Tesla Model 3 and Model Y vehicles. Developed through its wholly-owned subsidiary, Battery X Rebalancing Technologies Inc., in collaboration with strategic hardware and software development partner Beijing Pengneng Science & Technology Ltd. ("BJPN"), the milestone represents a significant step forward in the Company's broader multi-platform commercialization strategy for its patent-pending lithium-ion battery rebalancing platform.

Development of the First-Generation Tesla Adaptor

The first-generation Tesla Adaptor was developed as an engineering validation prototype, building upon the Company's Tesla battery interface characterization program previously disclosed in its news release dated January 2, 2026. 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 engineering validation program successfully confirmed several key technical objectives, as summarized below:

These achievements validate the foundational interface architecture and establish an engineering platform for the continued development, optimization, and future commercialization of the Company's battery rebalancing ecosystem. Management believes this also establishes a repeatable engineering framework to support future proprietary adaptor development across additional high-volume electric vehicle battery platforms.

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. Of these cumulative deliveries, the Tesla Model 3 is estimated to account for approximately 3.50 million vehicles, while the Tesla Model Y is estimated to account for approximately 5.39 million vehicles. Together, the two models are estimated to represent approximately 8.89 million cumulative vehicle sales, accounting for approximately 89% of Tesla's expected cumulative global deliveries.

The following table highlights the market share significance of these platforms in the United States:

Collectively, the Tesla Model 3 and Model Y account for more than half of the U.S. electric vehicle market. Management believes focusing commercialization efforts 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.

Next Steps and Ongoing Development

With the foundational engineering validation phase complete, Battery X Rebalancing Technologies has commenced the next stage of development focused on advancing the Tesla Adaptor toward a production-oriented commercial product. As part of this initiative, the Company 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 Tesla Adaptor, conduct additional engineering validation, and perform working prototype testing under representative operating conditions.

Future development activities are expected to include:

• Continued engineering optimization and industrial design refinement
• Material selection and manufacturability assessment
• Durability enhancement and commercial product integration
• Ongoing interface validation for repeatability, reliability, and compatibility
• Hardware refinement and Underwriters Laboratories ("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-market initiatives. Commercialization of both the battery rebalancing platform and the Tesla Adaptor remains subject to the completion of these development activities, receipt of UL certification, manufacturing readiness, and the availability of adequate capital resources.

The Battery Lifecycle Challenge and Battery X's Solution

The commercial context for Battery X Metals' technology is underpinned by the rapid growth of global electric vehicle adoption. In 2024, global EV sales reached approximately 17.1 million units, representing a 25% increase from 2023. Cumulative global EV sales from 2015 to 2023 totaled an estimated over 40 million units, with a significant share of the global EV fleet expected to exit warranty coverage in 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.

Battery X Rebalancing Technologies' proprietary rebalancing technology, validated by the National Research Council of Canada ("NRC"), addresses battery cell imbalance in lithium-ion battery packs. Key findings from the NRC validation are presented below:

Through the development of proprietary adaptor solutions for leading electric vehicle battery architectures, the Company intends to establish a scalable compatibility ecosystem capable of supporting deployment across automotive service centres, dealership networks, fleet operators, and other commercial customers. The first-generation Tesla Adaptor represents a foundational milestone in executing this strategy, enabling standardized integration with one of the industry's largest battery platforms.

Battery X Metals Inc. has appointed Zachary Funk, an automotive industry professional from the Canadian division of a leading premium automobile manufacturer headquartered in Munich, Germany, to its Advisory Board. The appointment is intended to strengthen the company's commercialization capabilities and industry engagement initiatives as it advances the deployment of its patent-pending lithium-ion battery rebalancing technology. Mr. Funk brings extensive expertise in dealer-network operations, sales strategy, and customer experience management, which will support the company's efforts to penetrate automotive service networks and dealership groups.

Strategic Advisory Role

Mr. Funk currently holds a regional sales and operations role overseeing 13 management teams across Canada. He is responsible for guiding sales-volume targets, client-satisfaction metrics, and retail-execution standards for a globally recognized performance- and design-focused brand. Prior to this, he served in dual brand management roles for the GAIN Group, overseeing operations for more than 20 automotive businesses in British Columbia. In his advisory capacity, Mr. Funk will assist Battery X Metals in developing commercialization pathways, partnership development, and customer adoption strategies for its Rebalancing Machine.

Technology Validation and Trials

Battery X Metals, through its subsidiary Battery X Rebalancing Technologies Inc., has developed a prototype designed to extend the useful life of electric vehicle (EV) batteries by rebalancing cell-level imbalances. The company has conducted a series of real-world driving performance trials on Class 3 commercial vehicles and light-duty electric vehicles. Key results from these trials include:

Additionally, trials conducted by third-party automotive service centers on BYD vehicle models demonstrated estimated driving range improvements of up to approximately 84 kilometers per charge. The National Research Council of Canada (NRC) has also validated the technology, confirming its ability to correct cell imbalances and recover lost capacity in lithium-ion battery packs.

Commercialization Roadmap

The company is advancing its commercialization roadmap by refining standard operating procedures, enhancing software functionality, and preparing for Underwriters Laboratories (UL) certification. Battery X Metals is also expanding adaptor compatibility for various EV platforms, including the Tesla Model 3. The company delivered three next-generation rebalancing machines in May 2026 to support ongoing validation and product refinement activities. The technology aims to reduce the total cost of ownership for fleet operators and consumers by extending battery lifespan and avoiding costly pack replacements.

"We are very pleased to welcome Mr. Funk to our Advisory Board," said Massimo Bellini Bressi, CEO of Battery X Metals. "His experience within one of the world's leading premium automobile manufacturers' Canadian division and prior experience with premium automotive dealership groups is expected to provide an exceptional understanding of dealer networks, customer adoption, and automotive business development."

Market Context

Global EV sales reached approximately 17.1 million units in 2024, a 25% increase from 2023. By 2031, nearly 40 million electric, plug-in hybrid, and hybrid vehicles worldwide are anticipated to fall outside of their original warranty coverage. Battery X Metals aims to address the resulting demand for cost-effective battery lifecycle solutions by providing scalable rebalancing and diagnostic technologies to automotive service centers.