Lion Battery Tests Favor Palladium Ahead of Pilot Production

Platinum Group Metals reported that its majority-owned subsidiary Lion Battery Technologies completed the first phase of independent testing and scale-up after more than five years of research and testing.

Platinum Group Metals Ltd. (TSX: PTM; NYSE American: PLG) has reported an independent validation milestone for its majority-owned subsidiary, Lion Battery Technologies Inc., as the battery developer moves toward pilot manufacturing. The strongest reported performance came from palladium-rich formulations, giving the company a direction for further development but not yet a quantified case for commercial adoption.

The Battery Innovation Center in Newberry, Indiana, tested Lion's proprietary electrode technology in prototype lithium-sulfur cells. Platinum group metal catalysts improved both capacity and rate capability compared with cells without those catalysts. Capacity describes how much electrical charge a cell can store; rate capability describes its ability to operate when charged or discharged more quickly.

The planned pilot-scale manufacturing program will produce commercial pouch-cell prototypes for high-energy applications, including drones. The important distinction is that these are prototypes intended to demonstrate the technology, not evidence of commercial shipments or an established production business.

Independent testing establishes a useful comparison

Lion has completed the first phase of independent testing and scale-up, according to the company announcement carried by INN Precious Metals. The tests validated its proprietary electrode technology and found that adding platinum group metal catalysts improved performance relative to non-catalysed cells.

That comparison matters because it addresses whether the catalysts contribute something measurable to the battery design. A catalyst helps chemical reactions proceed. In this case, the reported improvements concern how much charge the prototype cells hold and how effectively they operate at different charging or discharging rates.

The palladium-rich formulations delivered the strongest overall performance. That result gives Lion a basis for deciding which formulations deserve further development. It does not establish that palladium alone was responsible for every improvement, or that the best-performing laboratory formulation will also be the most economical manufacturing choice.

Dr. Bilal El-Zahab said the company had conducted more than five years of research and testing. The independent results therefore mark a development milestone within a longer research effort. They support continued work toward pilot production and commercial demonstration, rather than resolving all the questions a customer would ask before adopting the cells.

The missing measurements determine commercial significance

The announcement details provided do not quantify the capacity improvement or the gain in rate capability. They also do not give a pilot-production timetable. Those omissions limit how precisely investors and potential customers can assess the milestone.

A relative improvement can be meaningful without being sufficient for a particular application. The next useful disclosure would pair the comparison with absolute performance measurements and explain the conditions under which the cells were tested. Without that information, readers cannot determine how close the prototypes are to a customer's requirements.

Durability is another question to watch. A cell's initial capacity and rate capability do not, by themselves, establish how its performance changes through repeated use. Further evidence on retained capacity, operating conditions and consistency across test samples would help distinguish an encouraging formulation from a dependable product.

Comparable testing also matters. To evaluate the contribution of the catalysts, readers would need to understand how closely the catalysed and non-catalysed cells matched in other respects. The reported direction of improvement is clear; the size, repeatability and commercial importance of that improvement remain unquantified in the supplied announcement.

Pouch-cell production shifts the test toward manufacturing

The next stage is intended to produce commercial pouch-cell prototypes. A pouch cell encloses its battery components in a flexible package. Moving the technology into that format creates an opportunity to test a more application-relevant design, but the word commercial does not mean the cells have already secured customers.

Pilot manufacturing asks a different question from prototype validation: can the desired performance be reproduced through a workable production process? For Lion, investors should watch for evidence that the electrode technology performs consistently as manufacturing moves beyond the initial test cells.

Useful updates would describe the production process, the consistency of completed cells and the testing planned for potential applications. A timetable would also help establish when the next evidence might arrive. No specific start date, completion date or production volume is provided in the available details.

Drones are an identified target, not a disclosed customer relationship. For that application, performance needs to be assessed at the complete-cell and eventually battery-system level. Improved electrode behavior would still have to translate into a package that meets the user's requirements for weight, power delivery, durability and safety.

A potential metals use, not yet a demand forecast

For the mining sector, Lion's work presents a possible additional use for platinum and palladium. The reported tests suggest those metals can contribute to lithium-sulfur battery performance. They do not establish how much metal a commercial cell would contain or how much demand a successful product might generate.

Metal loading—the quantity of catalyst used in an electrode—will be important to the economic assessment. A performance advantage must be considered alongside material cost, manufacturing requirements and the value delivered to the customer. The supplied details do not disclose that loading or a cell-cost estimate.

There is consequently no basis here to calculate future platinum or palladium consumption, forecast battery revenue or assign a commercial value to the technology. The defensible conclusion is narrower: independent testing supports further development, with palladium-rich formulations leading the reported comparison.

Platinum Group Metals shares finished the September 30, 2026 session down 1.56%, with the supplied last-trade timestamp at 20:00 GMT. That close preceded the October 1 announcement and should not be presented as a market reaction to the testing news.

The next substantive milestone will be evidence that the reported advantage survives the transition to pilot-made pouch cells. Quantified performance, catalyst loading, production consistency and a clear demonstration schedule would give investors a firmer basis for judging the opportunity than the validation result alone.

Key facts

• Independent validation: The Battery Innovation Center in Newberry, Indiana, validated Lion's electrode technology in prototype lithium-sulfur cells.
• Best-performing formulations: Palladium-rich formulations delivered the strongest overall performance; catalysts improved capacity and rate capability.
• Next development stage: Pilot manufacturing will produce commercial pouch-cell prototypes targeting high-energy applications, including drones; no timetable was supplied.
• Stock and last trade: PLG: 1.26 (quote currency unspecified), down 1.56%; last trade September 30, 2026, at 20:00 GMT. Market closed.

Frequently asked questions

What did Lion Battery Technologies achieve?

Lion Battery Technologies completed the first phase of independent testing and scale-up of its platinum- and palladium-based lithium-sulfur battery technology. The Battery Innovation Center validated its proprietary electrode technology in prototype cells. The results support continued development toward pilot manufacturing and commercial demonstration, rather than establishing that commercial sales have begun.

What did the tests show about platinum and palladium?

Platinum group metal catalysts improved capacity and rate capability compared with non-catalysed prototype cells, while palladium-rich formulations delivered the strongest overall performance. Capacity measures stored electrical charge, and rate capability concerns operation at different charging or discharging rates. The supplied announcement does not quantify the improvements or disclose catalyst loading.

Who independently tested Lion's battery technology?

The Battery Innovation Center in Newberry, Indiana, independently tested Lion Battery Technologies' proprietary electrode technology in prototype lithium-sulfur cells. The reported validation provides evidence beyond the developer's own research. However, the available announcement details do not include the full testing conditions, numerical performance results or information needed to assess long-term durability.

What will the pilot manufacturing program produce?

Lion's pilot-scale manufacturing program will produce commercial pouch-cell prototypes targeting high-energy applications, including drones. These cells are intended to advance development and demonstration. The supplied details do not provide a production timetable, manufacturing volume or customer commitment, so the program should not be treated as evidence of an established commercial battery business.

Does this establish new commercial demand for palladium?

The results identify a potential battery application for palladium, but they do not establish commercial metal demand. The announcement does not disclose catalyst quantities per cell, future production volumes or customer orders. Estimating palladium consumption would require those details, alongside evidence that the technology can meet performance, manufacturing and economic requirements.

What should investors watch for next?

Investors should watch for quantified performance results, a pilot-production timetable and evidence that the catalyst advantage persists in pilot-made pouch cells. Catalyst loading, durability, manufacturing consistency and cost will also matter. The independent validation supports further development, but the available information does not establish commercial readiness or a basis for forecasting battery revenue.

Sources

• Lion Battery Technologies Advances Platinum and Palladium Based Lithium-Sulfur Battery Technology — INN Precious Metals

Photo: BulentYILDIZ · Pixabay Content License — source