Novonix (ASX:NVX) and Lithium Energy (ASX:LEL) will not proceed with a proposed spin-out of their consolidated graphite assets in Queensland.
In April 2024, Novonix, which has a market capitalisation of $286.77 million, entered into a share sale and purchase agreement with Lithium Energy, in which Lithium Energy would acquire Mt Dromedary Project in Queensland.
Both companies proposed to spin-out their consolidated graphite assets via an initial public offering by Axon Graphite – a subsidiary of Lithium Energy.
In light of prevailing market conditions and following consulting with the lead manager, both companies have decided to no longer complete the deal.
The company is now reviewing how best to progress Mt Dromedary to deliver value. Novonix’s nominees, Anthony Bellas and Christopher Burns, have resigned as directors of Axon Graphite.
Novonix is a battery technology company focused on the global lithium-ion battery industry.
Lithium Energy is a lithium, graphite, gold, and copper-focused company that aims to contribute to global decarbonisation through discoveries and development of mineral projects.
As Mining.com.au reported, the global graphite market is forecast to grow from US$8.32 billion in 2025 to US$13.35 billion by 2032, according to Fortune Business Insights. In 2024, natural graphite production was roughly 1.3 million tonnes, with synthetic graphite production more than double at 3 million tonnes.
Write to Aaliyah Rogan at Mining.com.au
Images: Novonix
