NOVONIX Reports US$20.1M Loss, Secures US$100M Funding to Scale Battery Materials
NOVONIX Limited reports progress scaling its Chattanooga synthetic graphite plant, secures major funding, and benefits from U.S. tariffs on Chinese imports, while narrowing its half-year loss.
- Commissioning underway for initial 3,000 tonnes per annum graphite capacity at Riverside facility
- Approved purchase of 182-acre site for second mass production plant in Chattanooga
- Secured US$25 million+ in equity funding and US$100 million convertible debenture agreement
- U.S. Department of Commerce imposes up to 721% tariffs on Chinese graphite imports
- Half-year loss narrows to US$20.1 million with cash reserves at US$24.8 million
Scaling Up Production in Chattanooga
NOVONIX Limited (ASX – NVX) has made significant strides in advancing its synthetic graphite production capabilities in the first half of 2025. The company is commissioning equipment at its Riverside facility in Chattanooga, Tennessee, targeting an initial capacity of 3,000 tonnes per annum (tpa) to fulfill supply agreements with Tier 1 customers including Panasonic, Stellantis, and PowerCo. This facility is poised to become North America’s first large-scale synthetic graphite plant, with a planned full capacity of 20,000 tpa.
Further cementing its growth ambitions, NOVONIX secured unanimous local government approvals to purchase a 182-acre parcel in the Enterprise South Industrial Park for a second mass production plant. This new site is expected to add an initial 31,500 tpa capacity and create up to 500 full-time jobs, potentially doubling the company’s total Chattanooga production to over 50,000 tpa.
Financial Position and Funding Initiatives
Despite posting a net loss of US$20.1 million for the half-year ended June 30, 2025, NOVONIX improved from a US$28.7 million loss in the prior year period. The company’s cash and cash equivalents stood at US$24.8 million, down from US$42.6 million at the end of 2024, reflecting ongoing capital investments in production scale-up.
To support its expansion, NOVONIX completed a share purchase plan raising US$20.1 million and secured an additional US$5 million investment from major shareholder Phillips 66 Company. Post-period, the company entered a funding agreement with Yorkville Advisors Global, LP to issue up to US$100 million in unsecured convertible debentures, subject to shareholder approval. This multi-tranche funding arrangement is designed to underpin the company’s capital-intensive growth strategy.
Strategic Impact of U.S. Tariffs on Chinese Graphite Imports
A pivotal development supporting NOVONIX’s domestic production strategy is the U.S. Department of Commerce’s preliminary rulings imposing countervailing tariffs of up to 721% and antidumping tariffs of 93.5% on synthetic and natural graphite imports from China. These tariffs, combined with existing trade measures, effectively raise the import tariff rate to approximately 160%, significantly altering the competitive landscape.
This regulatory environment underscores the strategic importance of localizing critical battery material supply chains in North America. NOVONIX’s position as a 100% domestic manufacturer with no ties to prohibited foreign entities qualifies it for production tax credits and aligns with U.S. policy priorities on energy security and supply chain resilience.
Innovation and R&D Progress
On the innovation front, NOVONIX advanced its patented all-dry, zero-waste cathode synthesis technology, sending samples to Tier 1 battery manufacturers and progressing commercialization discussions. The company also secured a U.S. patent for a method to produce low surface area silicon alloy particulate for anode materials, potentially enhancing battery performance and longevity.
Its Battery Technology Solutions division continues to support internal and external development with precision testing hardware and proprietary analytics, reinforcing NOVONIX’s vertically integrated approach to battery materials and technology.
Governance and Leadership Updates
Leadership changes include the appointment of Michael O’Kronley as CEO effective May 19, 2025, and Ronald Edmonds as Independent Chair of the Board from July 1, 2025. These appointments coincide with the company’s critical growth phase and capital raising efforts.
Material Uncertainty and Outlook
While NOVONIX’s progress is notable, the company’s financial report highlights a material uncertainty regarding its ability to continue as a going concern due to ongoing capital requirements for scaling production. The company’s ability to raise additional funds, execute profitable growth, and meet cash flow forecasts will be key to sustaining operations.
Investors should watch closely the upcoming shareholder meeting for convertible debenture approval, the ramp-up of commercial production at Riverside, and the final determinations on U.S. tariffs expected by December 2025, all of which will shape NOVONIX’s trajectory in the evolving battery materials market.
Bottom Line?
NOVONIX’s next chapters hinge on successful funding, production ramp-up, and navigating evolving U.S. trade policies that could redefine North America’s battery supply chain.
Questions in the middle?
- Will NOVONIX secure shareholder approval for the US$100 million convertible debenture funding?
- How quickly can Riverside facility scale from initial 3,000 tpa to full 20,000 tpa capacity?
- What will be the final impact of U.S. Department of Commerce’s tariff rulings on NOVONIX’s cost structure and competitive positioning?
