Summary
- NOVONIX signed a binding offtake agreement with PowerCo for synthetic graphite material
- PowerCo oversees global battery cell production with three gigafactory locations
- NOVONIX and PowerCo signed a testing and development agreement
- NOVONIX’s Riverside facility in Tennessee will begin production in 2025
- NOVONIX is planning to build a second production facility in the southeastern US
Article
NOVONIX, a battery materials and technology company, has signed a binding offtake agreement with PowerCo for a minimum of 32,000 tonnes of synthetic graphite material over a five-year term starting in 2027. PowerCo was established by German automaker Volkswagen in 2022 to increase its global battery cell production. It oversees international factory operations, advances in cell technology, and vertical integration of the battery value chain. PowerCo has identified three gigafactory locations in St. Thomas, Ontario, Canada, Salzgitter in Germany, and Valencia in Spain, with a combined annual capacity of up to 200 GWh.
In March 2024, PowerCo signed a non-exclusive testing and development agreement with NOVONIX as it seeks to secure supply for its Canadian factory. NOVONIX’s Riverside facility in Chattanooga, Tennessee is set to commence commercial production in 2025 and is expected to reach an annual output of 20,000 tonnes. Additionally, NOVONIX previously announced the award of a $100 million DOE grant and was selected for a $103 million investment tax credit for the funding of the facility.
NOVONIX is also working on plans to construct a second production facility in the southeastern United States with an initial annual capacity of 30,000 tonnes and the potential for expansion to up to 75,000 tonnes. The company is currently in discussions with the DOE Loan Program Office (LPO) for an Advanced Technology Vehicles Manufacturing Program loan to support the construction of this new production facility. This expansion is part of NOVONIX’s growth strategy to meet the increasing demand for battery materials.
With the binding offtake agreement with PowerCo in place, NOVONIX is set to supply a significant amount of synthetic graphite material to support PowerCo’s battery cell production. This agreement reinforces NOVONIX’s position in the battery materials market and solidifies its partnership with PowerCo. By expanding its production capacity and securing key partnerships, NOVONIX aims to contribute to the advancement of battery technology and meet the growing demand for electric vehicles and energy storage solutions.
The collaboration between NOVONIX and PowerCo highlights the importance of strategic partnerships in the battery materials industry. With PowerCo’s expertise in battery cell production and NOVONIX’s innovative materials technology, the two companies are well-positioned to drive advancements in battery technology and address the challenges associated with scaling up production to meet the demands of the rapidly growing electric vehicle market. This partnership is a significant step towards achieving a more sustainable and efficient energy storage ecosystem.
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