Novonix Signs Agreement With PowerCo For 32,000 Tonnes Of Synthetic Graphite

(RTTNews) - Novonix Limited (NVX, NVX.AX) announced the signing of a binding offtake agreement with PowerCo SE. Under the agreement, NOVONIX will supply a minimum of 32,000 tonnes of high-performance synthetic graphite to PowerCo over a five-year period, starting in 2027.

Established by Volkswagen in 2022, PowerCo is committed to ramp-up global battery cell production. PowerCo has identified three gigafactory locations - Salzgitter in Germany, Valencia in Spain, and St. Thomas in Canada - with a combined capacity of up to 200 GWh/year.

Novonix's Riverside facility is poised to become the first large-scale production site dedicated to high-performance synthetic graphite for the battery sector in North America and is slated to begin commercial production in 2025, with plans to grow output to 20,000 tonnes per annum or "tpa" to meet current customer commitments.

The company said that it is also progressing plans to build a second production facility, in the southeastern United States, that will have an initial capacity of 30,000 tpa and plans to expand that facility to 75,000 tpa.

Novonix remains in discussions with the DOE Loan Program Office for an Advanced Technology Vehicles Manufacturing Program loan to support the construction of this new production facility. Novonix's current plans call for total production to increase to at least 150,000 tpa of synthetic graphite material to accommodate anticipated customer demand.