Hi Anzu Partners Community,

This is Josh Stiling, Principal, Investment at Anzu Partners, here to share an update on South 8 Technologies, a defense technology company whose lithium-ion batteries power soldier radios, night vision, drones, and other mission-critical equipment in conditions where standard batteries fail, and which has had one of its strongest operational stretches to date this year.

South 8's cells, built on its LiGas®, the world's first liquefied gas electrolyte for lithium-ion batteries, operate down to -60°C with 2x the cycle life and faster charging of a standard cell. Because they are a drop-in replacement built on a domestic supply chain, they can be made in existing factories and qualified under existing programs. With the US and allied militaries now prioritizing arctic capability across soldier power, communications, and unmanned systems, demand for this kind of cell has moved from research budgets into procurement.

On the manufacturing side, South 8's cell has now passed UN38.3 lithium battery transport safety certification at multiple third-party test facilities, clearing the way for a new product line built for Arctic and extreme weather applications. The company's manufacturing facility has also earned ISO certification, and South 8 has added production assembly equipment at its San Diego site, with factory acceptance testing now complete. That progress became public on September 24, when South 8 announced that its new semi-automated battery cell manufacturing line in San Diego is officially operational. The equipment and facility are designed for ~10 MWh of annual production capacity, with ~5 MWh of output expected in 2027 as the line ramps toward full utilization.

South 8 ARCTIC AE35 Lithium-ion Battery Cells       

The company is now converting that demand into revenue, with management projecting more than $15 million in 2026. South 8 has executed a multi-year agreement with defense manufacturer Galvion, with deliveries already ongoing, to support its SoloPack™ Arctic and other defense application developments. South 8 has received multiple purchase orders from other defense and UAS manufacturers, including a significant purchase order from a drone manufacturer for 2026 cell delivery, and is building on a defense track record that includes a $9.2 million California grant to scale LiGas electrolyte production. South 8 reports an active pipeline of defense demand exceeding $125 million.

Defense is the beachhead, but the opportunity is broader. The same electrolyte that makes these cells work in the cold also delivers longer cycle life and faster charging under normal conditions, and it works in any lithium-ion cell. That combination has drawn cell and automotive manufacturers to evaluate it: performance has now been validated by more than 10 of them, and South 8 is in discussions with two cell manufacturers regarding joint development and potential mass production beginning as early as 2029.

South 8 is also pursuing a joint development project with one of the top cell manufacturers in the industry, with the goal of demonstrating LiGas technology at GWh+ scale, and the company anticipates raising additional capital to support that work.

Taken together, it's a lot of forward motion for South 8 heading into the final months of the year,  and we're looking forward to seeing that translate into continued momentum on the defense and manufacturing side. 

Sincerely,

Josh Stiling, Principal, Investment, Anzu Partners

PORTFOLIO COMPANY UPDATES

Niron Magnetics Secures Investment from Honda Motor Co., Ltd., and Marks Steel Raising at Sartell Manufacturing Site

Niron Magnetics, the company commercializing the world's first rare-earth-free Iron Nitride permanent magnets, announced an investment from Honda Motor Co., Ltd. made through Honda Xcelerator Ventures, the automaker's global open innovation program. The investment builds on high expectations for next-generation rare-earth-free magnetic materials and will support continued commercialization of Niron's technology as well as help scale its manufacturing operations.

The announcement coincided with a major construction milestone at Niron's Sartell, Minnesota facility, where the company celebrated the steel raising at its 287,000-square-foot manufacturing plant. CEO Jonathan Rowntree was joined by Sartell Mayor Ryan Fitzthum and other project leaders to raise a ceremonial steel column at the site, which remains on track to be operational in 2027.

"Honda's investment, announced this morning, is a strong vote of confidence in that vision, and in the work our team has put in to get us here," said Jonathan Rowntree, CEO of Niron Magnetics.

Manufacturing Dive, Forbes*, and the Minneapolis/St. Paul Business Journal* covered the news.

*Requires a subscription to read.

XGS Energy Selected by U.S. Department of Energy to Advance Next-Generation Geothermal Development in New Mexico

XGS Energy, a developer of next-generation geothermal power systems, was selected by the U.S. Department of Energy for federal funding to support drilling of a deep vertical appraisal well in New Mexico, as part of the DOE's broader $99 million funding effort to accelerate geothermal energy development nationwide.

Working with Baker Hughes, New Mexico Tech, and Sandia National Laboratories, XGS will use the project to generate critical subsurface data, reduce development uncertainty, and advance a system that generates geothermal power without consuming water, a key advantage in a state where heat is abundant, but water is scarce.

"New Mexico sits on a substantial and exciting geothermal resource, and we're grateful to the Department of Energy for investing in the subsurface data needed to transform our nation's abundant geothermal resources into affordable, reliable American energy," said Lucy Darago, Chief Commercial Officer of XGS Energy.

Reuters, Interesting Engineering, and Renewables Now covered the news.

6K Additive Secures 30-Month Nickel 718 Powder Supply Agreement with ADDMAN Valued at US$8.1–US$10.8 Million

6K Additive, a leader in the production of high-performance metal powders, signed a 30-month long-term supply agreement with ADDMAN Engineering to supply Nickel 718 alloy powder in support of ADDMAN's expanding production requirements across the aerospace, defense, and energy sectors. The agreement has a stated minimum value of $8.1 million and a maximum value of $10.8 million over its term and includes dedicated stocking support along with a structured revert buy-back program under which 6K Additive purchases used powder back from ADDMAN and reprocesses it into new powder using its proprietary UniMelt® microwave plasma system, creating a circular supply chain.

"This agreement is a natural evolution of the long-standing relationship and trust between our two organizations," said Frank Roberts, CEO and Managing Director of 6K Additive. "By transforming ADDMAN's revert into high-performance metal powder, we're demonstrating that upcycled feedstock can deliver the quality required for demanding additive manufacturing applications."

TCT Magazine covered the news.

Voltaiq Expands Partnerships with Forge Nano and the University of Michigan to Put AI at the Center of Battery Development and Manufacturing

Voltaiq expanded two key partnerships in September. First, Forge Nano, a U.S.-based semiconductor equipment and advanced materials company pioneering Atomic Layer Deposition technology, expanded its partnership with Voltaiq to embed AI and advanced analytics across its growing U.S. battery development and production operations. As Forge Nano scales from advanced battery development toward high-volume U.S.-based manufacturing, including a 3 GWh/year gigafactory underway in Morrisville, North Carolina, Voltaiq's platform will support R&D, product development, manufacturing, and quality, helping engineers rapidly find manufacturing anomalies, quality excursions, and equipment issues during high-volume production.

The University of Michigan Battery Lab also announced an expansion of its decade-long collaboration with Voltaiq, extending its use from battery test data and analytics into the Lab's cell prototype manufacturing operations. The Battery Lab helps academic and industrial customers turn new materials and battery designs into prototype cells without requiring their own dedicated prototyping infrastructure, and the expanded deployment will improve prototype build repeatability, equipment reliability, and customer transparency.

"We've relied on Voltaiq for more than a decade to help us manage and share battery test data," said Greg Less, Director of the Battery Lab at the University of Michigan.

AZO Materials and Automotive World covered the news.

Nirrin Technologies Showcases Next-Generation Bioprocess Analytical Platform and Workflows at BPI Conference and Exhibition

Nirrin Technologies, a developer of analytical tools designed to transform bioprocessing workflows, showcased its Tunable Laser Near-Infrared (TL-NIR) platform at the BPI Conference & Exhibition, held September 22 to 25 in Boston. The platform combines a common hardware foundation with software-enabled analytical workflows, including TALOS™ rapid protein quantitation and ATLAS® multi-analyte quantitation, and is designed to provide a consistent analytical architecture from process development through pilot, clinical, and commercial manufacturing.

ANZU PARTNERS UPDATES

Upcoming Events

Anzu representatives plan to attend the following events:

• NVNG Venture North – October 8, 2026 – Milwaukee, WI
• AFS 2026 Additive Manufacturing Conference – October 20-21, 2026 – St. Louis, MO
• Tough Tech Summit 2026 – October 27, 2026 – Boston, MA
• SC 2026 – November 15-20, 2026 – Chicago, IL

Please reach out to info@anzupartners.com if you’re interested in meeting with us at any of these events. 

ADDITIONAL PC MEDIA COVERAGE

• XGS Energy was featured in Grist's look at the water demands of geothermal energy development.

• GelSight was covered in a QY Research piece on the growing robotic tactile sensors market, and in Metrology News' coverage of its integration with Hexagon's portable dimensional and surface inspection tools.

• NTx Bio was covered by Genetic Engineering and Biotechnology News on its FLEX benchtop continuous-flow RNA production system, by the Rio Rancho Observer on the future of RNA production, and by Drug Discovery News, featuring an interview with CEO Dr. Joan Haab.

• ExOne was featured in TCT Magazine for Hyundai's installation of two ExOne VX1000 HSS polymer 3D printers.

• Nirrin Technologies was featured in Genetic Engineering and Biotechnology News, discussing the benefits of pure-component analysis and its TL-NIR platform.

• MedCrypt was featured in 24×7 Magazine and MDDI Online, both examining the state of healthcare cybersecurity in 2026.

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ABOUT ANZU PARTNERS

Anzu Partners is an investment firm that focuses on industrial and life science technology companies with the potential to transform their industries. Anzu works with entrepreneurs to develop and commercialize technological innovations by providing capital alongside deep experience in business development, market positioning, intellectual property, global connectivity, and operations. For more information, please visit https://anzupartners.com/.