The Nano-Cell is part of the technology created by Ultor Scientist Dr Axel Capek known as nanotechnology (not to be confused with the Nano Forge in Red Faction: Guerrilla). The technology was discovered by the EDF after liberating the Martian people from the Ultor Corporation after the events of the first Red Faction game, after which they themselves had scientists explore what it can do.
The technology, at some point made its way to Earth, and in its timeline had been stolen, stolen and stolen again, eventually ending up in the hands of the group known as Kn.A.N.O. From here, Chancellor of the Commonwealth, Victor Sopot, ordered his elite squad to steal the technology for him, which the resulting first mission of Red Faction II has the player as Alias complete.
Sopot then used the technology from the Nano-Cell to start creating his elite army - the Processed. During this process Subjects are noted to have increased skillsets and abilities. However Sopot feared his creation and soon ordered the destruction of the soldiers.
During the events of Red Faction II, Molov then acquires the Nano-Cell and begins creating more processed soldiers again, stating how hes perfected the process and says to Alias "They make you obsolete."
At the end of Red Faction II, Tangier is the last person to be seen holding the Nano-Cell, as she jumps out of the top of Sopots Statue after a brief confrontation with Molov. It is unknown what specifically happened to the Nano-Cell itself.