Novonix (ASX:NVX) and automotive company Stellantis (NYSE:STLA) have signed a binding offtake agreement for up to 115,000 tonnes of high-performance synthetic graphite material.
Stellantis is planning to invest more than €50 billion ($81.26 billion) over the next decade in electrification to deliver its targets of reaching 100% passenger car battery EVs. The company is securing 400 gigawatts per hour of battery capacity, including support from battery manufacturing plans in North America and Europe.
Novonix’s material will be supplied to Stellantiss’ cell manufacturing partners in North America over a six-year period starting from 2026 from Novonix’s Riverside facility and a planned expansion site.
The Riverside facility is expected to begin commercial production in 2025, with plans to grow output to 200,000 tonnes per year to meet current customer commitments.
Under the agreement, the price of the products sold by Novonix will be based on an agreed upon market-based price formula.
Novonix, which has a market capitalisation of $355.5 million, says the supply of high-performance synthetic graphite material is subject to the company achieving agreed upon milestones regarding final mass production qualification and satisfying certain compliance criteria.
If these milestones or requirements have not been satisfied, then Stellantis may terminate the agreement.
Novonix CEO Chris Burns says this contract allocates the remainder of the company’s available volumes at the Riverside facility and a portion of volumes to be produced at the greenfield facility.
“Offtake agreements with high-quality partners such as Stellantis solidify Novonix’s position as a leader in onshoring the supply chain of synthetic graphite and accelerating the adoption of clean energy,” says Burns.
In parallel, Novonix is progressing plans to build a new production facility in the US, that will have an initial capacity of 30,000 tonnes per year and plans to expand the facility to 75,000 tonnes per year.
The company is in discussions with the Department of Energy Loan Program Office for an advanced technology vehicles manufacturing program loan to support the construction of this new facility.
Novonix’s current plans for production to increase to at least 150,000 tonnes per year of synthetic graphite material to accommodate anticipated customer demand.
Novonix is a battery technology company focused on the global lithium-ion battery industry with technologies, high-performance materials, and production methods.
Write to Aaliyah Rogan at Mining.com.au
Images: Novonix
