Novonix (ASX:NVX) has signed a binding offtake agreement with PowerCo SE, for a minimum of 32,000 tonnes of high-performance synthetic graphite material.
The graphite material will be supplied to PowerCo over a five-year term starting in 2027, subject to Novonix achieving agreed upon milestones regarding the final mass production qualification and satisfying certain compliance criteria.
Novonix, which has a market capitalisation of $365.38 million, must also secure financing commitments for the production facilities that will supply PowerCo products.
If these milestones or requirements are not met, PowerCo is able to terminate the agreement.
The products will be priced under a pricing structure that has been agreed between both parties.
The company is also progressing plans to build a second production facility in the US, which will have an initial capacity of 30,000 tonnes per annum. The facility will have the potential to expand to 75,000tpa.
Novonix is still in discussions with the Department of Energy Loan Program Office for an Advanced Technology Vehicles Manufacturing Program loan to support construction of the new production facility.
The company aims for total production to increase to at least 150,000tpa of synthetic graphite material to accommodate anticipated customer demand.
Novonix is focused on making its Riverside facility become the first large-scale production site dedicated to high-performance synthetic graphite for the North American battery sector.
Further, commercial production is expected to begin next year at Riverside, with plans to grow output to 20,000tpa to meet current customer commitments.
Novonix is a battery technology company revolutionising the global lithium-ion battery industry with innovative, sustainable technologies, high-performance materials and efficient production methods.
Write to Aaliyah Rogan at Mining.com.au
Images: Novonix
