Novonix Secures US$100M Funding as Tariffs Boost Domestic Graphite Production

Strategic Expansion in Synthetic Graphite Production

Novonix Limited is accelerating its footprint in the North American battery materials sector with notable progress at its Riverside facility in Chattanooga, Tennessee. The company is advancing the installation and commissioning of equipment to achieve an initial production capacity of 3,000 tonnes per annum (tpa) of synthetic graphite anode material. This capacity is earmarked to fulfill existing supply agreements with major battery manufacturers including Panasonic, Stellantis, and PowerCo.

Complementing this, Novonix has secured unanimous local government approvals to purchase a 182-acre parcel at the Enterprise South Industrial Park for a second mass production plant. This new facility is projected to add an initial 31,500 tpa capacity, potentially creating up to 500 full-time jobs and bringing Novonix’s total Chattanooga production capacity to over 50,000 tpa.

Tariffs on Chinese Graphite – A Competitive Advantage

The US Department of Commerce’s preliminary rulings to impose countervailing duties up to 721% and antidumping tariffs of 93.5% on Chinese graphite imports mark a pivotal development for Novonix. These tariffs, stacking on existing trade measures, are designed to counteract unfair pricing and government subsidies that have historically suppressed domestic graphite production.

Novonix, as a 100% domestic manufacturer with no ties to prohibited foreign entities, stands to benefit significantly from these trade protections. The tariffs reinforce the company’s strategy to localize the battery materials supply chain in North America, aligning with US government incentives such as the 45X production tax credit under the Inflation Reduction Act.

Leadership and Financial Strengthening

Corporate governance updates include the appointment of Michael O’Kronley as Chief Executive Officer, effective May 19, 2025. O’Kronley brings over three decades of automotive and battery materials expertise, signaling a strategic focus on scaling production and commercial partnerships. Additionally, Ronald Edmonds has been named Independent Chair of the Board, bringing seasoned financial leadership to the company’s governance.

Financially, Novonix has executed a binding multi-tranche funding agreement with Yorkville Advisors Global, LP, providing up to US$100 million in unsecured convertible debentures. This capital injection is expected to support ongoing production scale-up and the development of the Enterprise South facility. The company reported a cash balance of US$24.8 million at quarter-end and invested US$22.5 million in property, plant, and equipment during the quarter.

Advancements in Battery Technology Solutions

Beyond anode materials, Novonix’s Battery Technology Solutions division continues to commercialize its patented all-dry, zero-waste cathode technology. Samples have been sent to several Tier-1 battery manufacturers, with ongoing efforts to scale the process and secure commercial agreements. The division also reported steady growth in its Ultra-High Precision Coulometry hardware business, expanding its global footprint through marketing and R&D initiatives.

These developments underscore Novonix’s integrated approach to battery materials innovation, positioning the company as a key player in the transition to cleaner energy and localized supply chains.