Shares Take Off Following Binding Offtake Agreement

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Monday, November 25, 2024

Battery usage continues to grow and this firm is reaping the benefits. Leading battery materials and technology company NOVONIX Limited (NASDAQ: NVX) announced in a press release today the signing of a binding offtake agreement with PowerCo SE to supply at least 32,000 tonnes of high-performance synthetic graphite material. The agreement spans a five-year term, from 2027 to 2031, solidifying NOVONIX’s role as a key supplier in the global battery supply chain. The synthetic graphite will support PowerCo’s growing battery cell production needs, aligning with the company’s commitment to advancing sustainable energy solutions.

PowerCo was established by Volkswagen in 2022 and focuses on scaling up global battery cell production through its oversight of factory operations, cell technology innovation, and integration of the battery value chain. With gigafactories planned in Salzgitter, Germany; Valencia, Spain; and St. Thomas, Canada, PowerCo aims to achieve a combined production capacity of up to 200 GWh annually. This partnership builds on a non-exclusive Testing and Development Agreement signed between the two companies in March 2024, further strengthening their collaborative efforts.

NOVONIX’s Riverside facility, set to become North America’s first large-scale producer of high-performance synthetic graphite for batteries, is on track to commence commercial production in 2025. With an initial output target of 20,000 tonnes per annum (“tpa”), the facility is designed to meet growing customer demand. The project is supported by a US$100 million grant from the U.S. Department of Energy’s Office of Manufacturing and Energy Supply Chains (MESC) and a US$103 million investment tax credit, ensuring robust funding for its development and expansion.

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