NOVONIX is ramping up industrial-grade synthetic graphite production with mass manufacturing slated for 2026, while battery-grade output for Panasonic faces delays until late 2027. The company also navigates a major offtake termination and secures significant funding to support its growth.
- Industrial-grade synthetic graphite mass production to start in 2026
- Battery-grade anode material production for Panasonic delayed to second half of 2027
- Offtake agreement with Stellantis NV terminated over product specification disagreements
- US$100 million convertible debenture financing completed, boosting cash reserves
- Foundational patent granted in China for all-dry cathode synthesis technology
Industrial-Grade Graphite Production Nears Scale-Up
In 2025, NOVONIX provided over 100 samples of synthetic graphite to 15 customers and prospects, spanning battery, energy storage, and industrial sectors. A significant milestone was reached with the delivery of the first mass-production industrial-grade synthetic graphite sample to a major North American carbon processor. This achievement validates NOVONIX’s proprietary continuous graphitization furnace technology and sets the stage for mass production at its Riverside facility in Chattanooga, Tennessee, expected to commence in 2026.
Industrial-grade graphite’s shorter product qualification timeline compared to battery-grade material offers NOVONIX a faster route to market, diversifying its product portfolio beyond batteries and positioning the company for increased production volumes.
Battery-Grade Production Delayed, Panasonic Partnership Progresses
While industrial-grade production advances, the timeline for battery-grade anode material production for Panasonic Energy has shifted. Despite full installation and commissioning of all mass production equipment, including four graphitization furnaces, final product qualification is ongoing. Mass production is now anticipated in the second half of 2027, a delay from earlier expectations.
NOVONIX continues close collaboration with Panasonic and other customers, with supply volumes to be finalized upon completion of product qualification and execution of definitive agreements. This cautious approach underscores the technical challenges and stringent standards in battery-grade material manufacturing.
Offtake Agreement Termination with Stellantis
In a setback, NOVONIX announced the termination of its offtake agreement with FCA US LLC, a Stellantis NV subsidiary. The parties could not agree on unique battery cell product specifications and mass production milestones. Originally signed in November 2024 for a minimum of 86,250 tonnes over six years, the agreement’s cancellation highlights the complexities of aligning product development with automotive OEM requirements.
Despite this, NOVONIX remains focused on fulfilling commitments to Panasonic and PowerCo and continues to provide samples to other potential customers.
Innovation and Intellectual Property Progress
NOVONIX’s Battery Technology Solutions division launched a new Ultra-High Precision Coulometry (UHPC) Calibration Module, enhancing cell testing accuracy and reducing equipment downtime for customers. Additionally, the company advanced its all-dry, precursor-free cathode synthesis technology, which promises significant reductions in power consumption, waste generation, and processing costs compared to conventional methods.
Foundational patents for this cathode technology were granted in China, complementing earlier patents in the US, Europe, and Japan. These intellectual property milestones reinforce NOVONIX’s commitment to sustainable and cost-efficient battery material production.
Corporate and Financial Developments
Leadership changes included the appointment of CEO Mike O’Kronley as Managing Director and the hiring of Dwayne Johnson as Chief Operating Officer, bringing extensive manufacturing and capital project expertise. NOVONIX also completed a US$100 million convertible debenture transaction with Yorkville Advisors, providing additional financial flexibility to support production scale-up.
As of 31 December 2025, NOVONIX held US$81.3 million in cash and invested US$13.4 million in capital expenditures, primarily at its Chattanooga facility. The company continues to navigate a complex regulatory environment, including ongoing US trade investigations imposing high tariffs on Chinese anode materials, which bolster its strategy to build a resilient North American supply chain.
Bottom Line?
NOVONIX’s progress in industrial graphite production and patent wins are promising, but delays and contract losses signal a challenging road ahead for battery-grade materials.
Questions in the middle?
- How will the delay in Panasonic’s battery-grade production impact NOVONIX’s revenue projections?
- Can NOVONIX secure new offtake agreements to offset the loss of Stellantis as a customer?
- What are the potential outcomes of the US trade investigations on Chinese graphite imports and their effect on NOVONIX’s competitive positioning?