Novonix Partners with Stellantis for Synthetic Graphite Supply

Novonix Limited has entered into a significant offtake agreement with Stellantis NV to supply high-performance synthetic graphite. This collaboration, along with government grants, positions Novonix for potential growth in the battery materials market, generating investor interest.

Date: 11-11-2024

AI Rating: 7

Novonix Limited's agreement with Stellantis NV is a substantial development in the battery materials sector. The binding offtake agreement involves a minimum supply of 86,250 tonnes of synthetic graphite, with the potential to increase to 115,000 tonnes, indicating strong demand for Novonix's products.

The report highlights that Novonix's Riverside facility is set to become a key player in large-scale production of synthetic graphite for the battery sector in North America. The commencement of commercial production in 2025 and the goal to reach an output of 20,000 tonnes per annum positions the company strategically to meet customer commitments.

Furthermore, the company has received significant financial backing, including a US$100 million grant from the U.S. Department of Energy and a US$103 million investment tax credit. Such financial support bolsters Novonix's ability to scale production and indicates confidence from governmental bodies in the company's future prospects.

In addition to the Riverside facility, Novonix plans to build a new production facility with an initial capacity of 30,000 tonnes per annum, which could be expanded to 75,000 tonnes. This expansion plan underlines Novonix's commitment to meeting anticipated customer demand, potentially increasing its market share in the synthetic graphite space.

Overall, the developments outlined in the report suggest a positive outlook for Novonix, with substantial agreements and government support facilitating growth in production capabilities and market reach.

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