Novonix Advances with First Mass Production Shipment and $49M Funding Drawdowns

Operational Breakthrough at Riverside Facility

Novonix Limited has marked a significant milestone with the delivery of its first mass production, industrial-grade synthetic graphite sample. This achievement at its Riverside facility in Chattanooga, Tennessee, signals the company’s transition from development to commercial-scale production. The synthetic graphite, produced using Novonix’s proprietary continuous graphitization furnace technology, is destined for one of North America’s largest value-add carbon processors, with further shipments planned for the coming quarter.

The completion of installation and commissioning of all mass production equipment for lead customer Panasonic further cements Novonix’s readiness to scale. With four graphitization furnaces operational, the company is progressing furnace calibration and raw material testing, moving steadily toward full commercial production. Binding long-term offtake agreements with Panasonic Energy, Stellantis, and PowerCo underpin this expansion, positioning Novonix as a key domestic supplier in the battery materials sector.

Strategic Advantage Amid Trade Policy Shifts

In a notable regulatory development, the U.S. Department of Commerce has preliminarily imposed antidumping tariffs ranging from 93.5% to 102.7% on battery-grade graphite imports from China. When combined with existing countervailing duties and tariffs, the effective rate exceeds 160%. This move underscores the strategic importance of Novonix’s domestic synthetic graphite production, which is free from involvement with Prohibited Foreign Entities under U.S. legislation. The tariffs are expected to reinforce demand for locally produced battery materials, aligning with Novonix’s business strategy and its customers’ diversification efforts.

Advancing Cathode Technology and Funding

Beyond anode materials, Novonix is pushing forward with its patented all-dry, precursor-free cathode synthesis technology. This innovative process eliminates water and harmful solvents, reduces power consumption by approximately 27%, and cuts processing costs by nearly half compared to conventional methods. The company has secured foundational patents in the U.S. and Europe and is actively engaging in licensing discussions with major OEMs and Tier-1 battery manufacturers.

Supporting this technological advancement, Novonix was selected to receive up to CAD $5 million in non-dilutive grant funding from Natural Resources Canada. This funding will accelerate commercialization, operational scale-up, and performance benchmarking of cathode active materials at the company’s pilot facility in Nova Scotia.

Corporate Developments and Financial Position

On the corporate front, Novonix has entered a US$100 million convertible debenture funding agreement with Yorkville Advisors Global, LP. Multiple tranche drawdowns have been completed, with $49.4 million in cash received post-September 2025. This capital injection supports ongoing production scale-up and R&D initiatives.

Additionally, Novonix sold its Mt Dromedary Natural Graphite Project in Queensland for AUD $2 million, signaling a strategic focus on synthetic graphite production in the U.S. Leadership appointments of Dwayne Johnson as Chief Operating Officer and Kimberly Heimert as Chief Legal and Risk Officer bring seasoned expertise to guide the company through its growth phase.

Financially, Novonix reported a cash balance of $44.7 million at quarter-end, invested US$13.7 million in property, plant, and equipment, and recorded net operating cash outflows of $9.2 million for the quarter. The company continues to navigate grant reimbursement reviews and is advancing its Riverside facility toward full production capacity.