J-Star Holding Co., Ltd. Highlights Capital Initiatives to Fund Planned U.S. Expansion for Drone Frame Manufacturing in Houston, Texas

HOUSTON, Oct. 09, 2026 (GLOBE NEWSWIRE) -- J-Star Holding Co., Ltd. (NASDAQ: YMAT) (“J-Star” or the “Company”), an advanced composite manufacturing innovator, today announced that its ongoing corporate capital initiatives are strategically designed to fund the upcoming establishment of its automated carbon fiber production facility in Houston, Texas. This allows J-Star to secure the requisite capital runway to acquire automated equipment, execute site preparation, and establish the complete ecosystem of key technologies and operational know-how required for mass production of drone frame in the United States. The planned facility is expected to deliver localized, high-volume manufacturing for commercial and defense unmanned aerial vehicle (UAV) frames, supported by initial R&D and material testing from a Japan-based, Tier-1 multinational carbon fiber supplier.  

A Decade of Scaling Across Critical Industries

J-Star’s United States expansion represents the culmination of a decade-long manufacturing evolution. Over the past ten years, the Company has systematically scaled its composite processing capabilities across high-precision sectors—advancing from sporting goods to robotic arms, healthcare devices, automotive structural components, and today, defense and commercial drone frames. The strategic decision in January 2026 to exit traditional OEM manufacturing in China represented a clear commitment to transforming its legacy business model, paving the way to concentrate 100% of J-Star’s capital, operational focus, IP, and localized supply chain assets within the U.S.

Key Innovations for Mass-Production Debottlenecking

Central to the planned automated assembly lines in Houston, Texas are pivotal patent applications filed in Taiwan in early 2026, serving as the primary technological breakthroughs to debottleneck high-volume UAV frame mass production:

1. Composite-to-Metal Interlocking Technology: A patented structural bonding process that seamlessly integrates carbon fiber composites with metallic components without compromising material integrity or adding weight, unlocking rapid assembly speeds.

2. Industrial-Grade Carbon Fiber Skin-to-Skeleton Welding: A proprietary automated welding methodology enabling precise, repeatable high-strength bonding of carbon fiber skins directly onto rigid structural skeletons for high-stress drone frames, eliminating labor-intensive manual layup constraints.

Disciplined Capital Execution

The optimization of J-Star’s financial structure, including incorporating its Form F-3 shelf registration and proposed capital adjustments, ensures the Company can seamlessly transition from planning to facility deployment and fulfill prospective customer agreements without operational delay.  

“Our capital initiatives are the fundamental foundation built specifically to unlock our Texas manufacturing vision,” said Jonathan Chiang, Chairman and CEO of J-Star Holding Co., Ltd. “By exiting from China OEM operations in January, we took the necessary steps in a multi-year strategic plan to fully establish the essential elements of automated UAV frame mass production in the U.S. Through our decade long technological innovations—from sporting goods to robotics, and healthcare—we mastered the automated composite production for advanced UAV frames. By deploying our core patents that are backed by R&D testing support from a Japan-based Tier-1 carbon fiber partner, we are executing our U.S. roadmap to debottleneck high-volume production with clarity and discipline.”

About J-Star Holding Co., Ltd.

J-Star Holding Co., Ltd. is a global manufacturer of carbon fiber and composite material products, with a legacy in high-performance cycling components and a growing portfolio of applications across healthcare, automotive, and other advanced materials markets. For more information, visit j-starholding.com.

Forward-Looking Statements

This press release contains "forward-looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995, including statements regarding the Company's capital markets strategy, its U.S. expansion plans, and its evaluation of opportunities in aerospace and defense-adjacent markets. These statements are based on current expectations and assumptions and are subject to risks and uncertainties that could cause actual results to differ materially, including those described in the Company's filings with the U.S. Securities and Exchange Commission, including its Annual Report on Form 20-F and its registration statement on Form F-3, as amended. The Company undertakes no obligation to update any forward-looking statements, except as required by law.

Contact

Matt Chesler, CFA
FNK IR
646-809-2183
investor@j-starholding.com