ALAMEDA, Calif., October 21, 2026 — Sylvatex (SVX), an advanced battery materials company pioneering cost-competitive domestic cathode manufacturing, today announced a strategic collaboration with American Lithium Energy (ALE), a California-based manufacturer of high-performance lithium-ion batteries for defense, aerospace, and other critical applications.
The companies have signed a nonbinding Memorandum of Understanding (MOU) establishing a phased pathway to evaluate SVX’s lithium iron phosphate (LFP) cathode active materials (CAM) for integration into ALE’s battery cells. The collaboration brings together complementary capabilities in domestic battery materials production and advanced cell manufacturing, with the goal of strengthening U.S. supply chain security and supporting growing demand for domestically produced batteries.
Announced during California Manufacturing Month, the collaboration also highlights the importance of connecting California’s battery innovators to build a more integrated domestic manufacturing ecosystem.
Advancing a Pathway from Material Qualification to Commercial Supply
Under the MOU, SVX and ALE intend to pursue a structured, three-phase validation program designed to evaluate SVX’s LFP CAM for potential use in ALE’s battery products.
The collaboration will begin with initial material qualification on ALE’s research and development line, progress to pilot-scale engineering validation and cell production, and ultimately evaluate the materials under conditions representative of ALE’s commercial manufacturing environment.
For ALE, the collaboration represents an opportunity to evaluate a domestic source of critical battery materials as the company expands its U.S. manufacturing capabilities and serves growing demand from defense and aerospace customers. For SVX, the relationship provides a pathway to validate its materials within an established American battery manufacturer’s production environment and support future commercial-scale supply.
“Building a resilient American battery supply chain requires more than domestic cell manufacturing. It requires an integrated industrial ecosystem that connects critical materials, advanced chemistry, and scalable production here in the United States. Our collaboration with Sylvatex represents an important step toward that objective, bringing together California-based innovation in cathode materials and American Lithium Energy’s advanced cell manufacturing capabilities. As demand accelerates across defense, aerospace, and commercial markets, partnerships like this are essential to reducing foreign supply chain dependencies, strengthening our national security, and establishing a globally competitive U.S. battery industry. We appreciate the California Energy Commission’s leadership in helping connect innovators and accelerate the commercialization of American-made energy technologies.” — William Hadala, Chief Strategy Officer of American Lithium Energy
Securing America’s Defense Battery Supply Chain
As the United States expands domestic battery manufacturing, securing the critical materials inside those batteries remains a significant challenge. While American companies are investing in advanced cell production, much of the global supply of CAM, and the upstream feedstocks, remains concentrated in China, creating supply chain vulnerabilities for U.S. defense and other critical industries.
These challenges are becoming increasingly urgent as federal procurement requirements evolve. Section 842 of the Fiscal Year 2026 National Defense Authorization Act (NDAA) establishes restrictions on sourcing advanced batteries and functional cell components, including CAM, from foreign entities of concern. The requirements begin taking effect for new defense acquisition programs in January 2028, reinforcing the need to establish trusted domestic and allied sources of critical battery components.
SVX is addressing this manufacturing gap through its proprietary solid-state, precursor-free process for producing LFP CAM. By eliminating conventional precursor processing steps and utilizing commercially available industrial equipment, SVX’s technology is designed to enable cost-competitive U.S. cathode production without dependence on China-dominated precursor manufacturing infrastructure.
ALE brings complementary expertise in designing and manufacturing high-performance battery cells for demanding applications, including defense and aerospace. By connecting SVX’s domestic cathode manufacturing technology with ALE’s battery cell production capabilities, the companies aim to help build a more secure, resilient supply chain capable of supporting evolving U.S. defense procurement requirements.
“Building batteries in America is only part of the solution. We also need to manufacture the critical materials that go inside them. At Sylvatex, we’ve developed a fundamentally different approach to cathode manufacturing that eliminates conventional precursor processing and disconnects the industry’s reliance on China. Our collaboration with American Lithium Energy brings together two essential pieces of the domestic battery supply chain, advancing our shared goal of supporting America’s defense and energy security.” — Virginia Klausmeier, CEO of Sylvatex
Connecting California’s Battery Manufacturing Ecosystem
The collaboration also demonstrates the value of California’s continued investment in building an integrated battery manufacturing industry, connecting companies developing critical materials with those scaling domestic battery production.
Both SVX and ALE are recipients of funding from the California Energy Commission (CEC), which has supported their respective efforts to advance battery technology innovation and manufacturing in the state.
SVX received a $2.3 million grant through the CEC’s Realizing Accelerated Manufacturing and Production for Clean Energy Technologies (RAMP) program to accelerate the scale-up of its advanced cathode manufacturing technology in Alameda.
ALE recently celebrated the opening of its expanded 82,000-square-foot battery manufacturing facility in Vista, California, supported by two California Energy Commission (CEC) grants totaling more than $13 million through its Clean Transportation Program and Electric Program Investment Charge (EPIC) program. The funding supports expanded electric vehicle battery cell production and pilot production of high-capacity silicon-anode prismatic batteries, marking another milestone in California’s growing battery manufacturing industry.
The relationship between the two companies was initially facilitated by Joshua Croft, Commission Agreement Manager at the California Energy Commission, who recognized the potential alignment between SVX’s cathode manufacturing technology and ALE’s advanced battery production capabilities.
As California celebrates Manufacturing Month, the collaboration illustrates how state-supported innovation can extend beyond individual projects to create new commercial relationships across the battery value chain. By connecting complementary technologies and manufacturing capabilities, California is helping establish the foundation for a more competitive domestic battery industry that supports economic development, manufacturing jobs, and broader U.S. energy and national security priorities.
“This partnership bridges an essential gap in California’s battery ecosystem by linking Sylvatex’s low-cost cathode materials process directly with American Lithium Energy’s scaled advanced manufacturing facility. It proves California can build a resilient, end-to-end domestic supply chain that delivers high-performance cells without relying on foreign materials.” — Joshua Croft, California Energy Commission
About SVX
SVX (SVX) is an advanced battery materials company pioneering a solid-state, precursor-free manufacturing platform for lithium iron phosphate (LFP) and related cathode active materials. Its innovative process is designed to significantly reduce manufacturing costs, capital requirements, energy consumption, and waste while enabling secure, domestically sourced battery supply chains independent of Chinese supply chains. Supported by the U.S. Department of Energy and California Energy Commission, SVX is advancing cost-competitive cathode manufacturing to support America’s energy, transportation, and national security needs. SVX is headquartered in Alameda, California.
Learn more at www.sylvatex.com.
About American Lithium Energy
American Lithium Energy (ALE) is a California-based developer and manufacturer of advanced lithium-ion battery cells and systems for defense, aerospace, transportation, and other demanding applications. Founded in 2006, ALE develops high-performance battery technologies designed to meet stringent requirements for energy density, power, safety, and reliability. With manufacturing operations in Southern California, ALE is expanding domestic battery production capabilities to support critical U.S. industries and strengthen the nation’s battery supply chain.
Learn more at www.americanlithiumenergy.com.