publive-image

Novonix will be committed to deliver at least 86,250 metric tons of synthetized graphite 

Australia-based Novonix, which specializes in the production of batteries, has made a major breakthrough after it signed an off-take deal with automaker Stellantis. Under the deal, high-performance synthetic graphite to be supplied by Novonix will be used by the battery manufacturing partners of Stellantis spread across North America. This deal will be a shot in the arm for the EV sector, which is growing exponentially.

Under the agreement, Novonix, based in Brisbane, will be committed to delivering at least 86,250 metric tons of synthetized graphite. In addition, it has a target of up to 115,000 metric tons. These shall be sourced from a plant located in Riverside, Tennessee, starting in 2026 till the end of 2031. Under this deal, Novonix is set to reinforce its position as one of the leading players in growing battery manufacturing, especially with the surge in demand for electric cars.

According to Novonix CEO Chris Burns, "This agreement dedicates the balance of available volumes from our Riverside facility and a portion of volumes to be produced from our upcoming greenfield facility." The greenfield facility, currently under construction in the southeastern United States, will have an initial production capacity of 30,000 metric tons, which Novonix will ramp up to 75,000 metric tons annually as the facility expands.

The Riverside facility is very important because it has already started operations and will provide the necessary synthetic graphite to be used in the manufacture of EVs' batteries. Novonix, by committing to such massive deliveries of synthetic graphite, will ensure that Stellantis' battery manufacturing partners will be well stocked, catering to the demand for electric vehicles that is on an upward swing in North America.

It reflects the increasing significance of sustainable, high-performance materials for companies like Novonix in the battery production industry as they meet the huge demands from the rapidly expanding EV market. The alliance between Novonix and Stellantis will be a crucial step for the company that has been seeking innovation progress in work supporting clean energy solutions and transitioning to electric vehicles.

The deal between Novonix and Stellantis should positively impact the supply chain for EV batteries in North America through stable, high-quality synthetic graphite supply over the next several years.