NOVONIX Secures US$754M DOE Loan and Major Offtake Deals to Boost U.S. Graphite Supply

Strategic Financing to Fuel Expansion

NOVONIX has secured a conditional commitment for a direct loan of up to US$754.8 million from the U.S. Department of Energy’s Loan Programs Office. This financing is earmarked for the construction of NOVONIX Enterprise South (NES), a new synthetic graphite manufacturing plant in Chattanooga, Tennessee. The facility is projected to produce approximately 31,500 tonnes of synthetic graphite annually by 2028, supporting lithium-ion battery production for an estimated 325,000 electric vehicles each year.

This loan commitment underscores the U.S. government’s strategic focus on localizing critical battery materials supply chains amid rising geopolitical tensions and export restrictions from China, which currently dominates over 95% of the battery-grade graphite market.

Securing Demand Through Binding Offtake Agreements

Complementing its financing progress, NOVONIX has signed binding offtake agreements with two major automotive and battery players. Stellantis, a global automotive powerhouse with brands including Jeep, Dodge, and Maserati, has committed to a target volume of 115,000 tonnes of high-performance synthetic graphite from 2026 through 2031. PowerCo, Volkswagen’s battery cell manufacturing arm, has agreed to purchase a minimum of 32,000 tonnes from 2027 through 2031.

These agreements, alongside an earlier contract with Panasonic Energy, fully allocate the production capacity of NOVONIX’s Riverside facility and signal strong market confidence in NOVONIX’s product quality and supply reliability. The combined contracted volumes are expected to exceed the Riverside facility’s initial 3,000 tonnes per annum capacity, driving demand for the NES expansion.

Operational Progress and Financial Position

Despite some delays in equipment delivery affecting Riverside’s commissioning timeline, NOVONIX expects to complete installation in the first half of 2025 and begin production in early 2026. The company has raised approximately US$52.4 million through an institutional placement and a share purchase plan, significantly exceeding its original targets. This capital injection will fund equipment purchases and commissioning activities at Riverside.

As of December 31, 2024, NOVONIX held a cash balance of US$42.6 million, which would have been US$67.8 million including subsequent equity placements. Capital expenditures for the year totaled US$29.9 million, primarily directed toward production assets in Tennessee and cathode pilot line development in Nova Scotia.

Technology and Partnerships Driving Innovation

NOVONIX continues to build its intellectual property portfolio, recently securing a U.S. patent for a graphite/silicon alloy composite material that promises improved battery cycle life. The company also entered into a license agreement with Harper International for proprietary graphitization furnace technology, enhancing its manufacturing capabilities.

Strategic collaborations with Voltaiq and Gamry Instruments aim to integrate advanced analytics and electrochemical impedance spectroscopy into NOVONIX’s battery testing and development platforms, further strengthening its technology leadership in battery materials and quality control.

Leadership Transition and Outlook

In a significant corporate update, NOVONIX announced the planned stepping down of CEO Dr. Chris Burns, effective January 24, 2025. CFO Robert Long has been appointed interim CEO to guide the company through this critical growth phase. The board has initiated a search for a permanent CEO with expertise in manufacturing scale-up and operations.

Looking ahead, NOVONIX aims to meet customer timelines, advance NES development, finalize DOE loan closure, and ramp up Riverside production to become North America’s first large-scale producer of high-performance synthetic graphite for EV batteries.