NOVONIX and PowerCo SE Sign Binding Offtake Agreement
NOVONIX and PowerCo SE have signed a binding offtake agreement for a minimum of 32,000 tonnes of high-performance synthetic graphite material to be supplied from 2027-2031. PowerCo, established by Volkswagen in 2022, operates three gigafactories with a combined capacity of 200 GWh/year. NOVONIX's Riverside facility will begin commercial production in 2025, targeting 20,000 tonnes per annum output. The company received a US$100 million DOE grant and US$103 million investment tax credit for the facility. NOVONIX plans a second facility in the southeastern US with initial 30,000 tpa capacity, expandable to 75,000 tpa, aiming for total production of 150,000 tpa.
NOVONIX e PowerCo SE hanno firmato un accordo vincolante per la fornitura di un minimo di 32.000 tonnellate di materiale in grafite sintetica ad alte prestazioni, che sarà fornito dal 2027 al 2031. PowerCo, fondata da Volkswagen nel 2022, gestisce tre gigafabbriche con una capacità combinata di 200 GWh/anno. Lo stabilimento Riverside di NOVONIX inizierà la produzione commerciale nel 2025, puntando a un'output annuale di 20.000 tonnellate. L'azienda ha ricevuto una sovvenzione di 100 milioni di dollari dal DOE e un credito d'imposta per investimenti di 103 milioni di dollari per lo stabilimento. NOVONIX prevede un secondo stabilimento nel sud-est degli Stati Uniti con una capacità iniziale di 30.000 tpa, ampliabile a 75.000 tpa, puntando a una produzione totale di 150.000 tpa.
NOVONIX y PowerCo SE han firmado un acuerdo vinculante de compra para un mínimo de 32,000 toneladas de material de grafito sintético de alto rendimiento, que se suministrará de 2027 a 2031. PowerCo, establecido por Volkswagen en 2022, opera tres gigafábricas con una capacidad combinada de 200 GWh/año. La planta Riverside de NOVONIX comenzará la producción comercial en 2025, con un objetivo de producción anual de 20,000 toneladas. La empresa recibió una subvención de 100 millones de dólares del DOE y un crédito fiscal por inversión de 103 millones de dólares para la planta. NOVONIX planea una segunda planta en el sureste de EE. UU. con una capacidad inicial de 30,000 tpa, ampliable a 75,000 tpa, con el objetivo de alcanzar una producción total de 150,000 tpa.
NOVONIX와 PowerCo SE는 2027년부터 2031년까지 공급될 최소 32,000톤의 고성능 합성 흑연 물질에 대한 구속력 있는 구매 계약을 체결했습니다. 2022년 폭스바겐에 의해 설립된 PowerCo는 총 200 GWh/년의 용량을 가진 세 개의 기가팩토리를 운영하고 있습니다. NOVONIX의 리버사이드 시설는 2025년에 상업 생산을 시작하며, 연간 20,000톤의 생산을 목표로 하고 있습니다. 이 회사는 시설에 대해 1억 달러의 DOE 보조금과 1억 3백만 달러의 투자 세액 공제를 받았습니다. NOVONIX는 남동부 미국에 두 번째 시설을 계획하고 있으며 초기 용량은 30,000 tpa로, 75,000 tpa로 확장할 수 있으며, 총 150,000 tpa의 생산 목표를 가지고 있습니다.
NOVONIX et PowerCo SE ont signé un accord d'achat contraignant pour un minimum de 32 000 tonnes de matériau en graphite synthétique hautes performances, qui sera fourni de 2027 à 2031. PowerCo, fondée par Volkswagen en 2022, exploite trois gigafactories avec une capacité combinée de 200 GWh/an. L'installation Riverside de NOVONIX débutera sa production commerciale en 2025, visant une production annuelle de 20 000 tonnes. L'entreprise a reçu une subvention de 100 millions de dollars du DOE et un crédit d'impôt pour investissement de 103 millions de dollars pour l'installation. NOVONIX prévoit une deuxième installation dans le sud-est des États-Unis, avec une capacité initiale de 30 000 tpa, extensible à 75 000 tpa, visant une production totale de 150 000 tpa.
NOVONIX und PowerCo SE haben eine verbindliche Abnahmevereinbarung über mindestens 32.000 Tonnen hochleistungsfähigen synthetischen Grafitmaterials unterzeichnet, das von 2027 bis 2031 geliefert werden soll. PowerCo, gegründet von Volkswagen im Jahr 2022, betreibt drei Gigafabriken mit einer kombinierten Kapazität von 200 GWh/Jahr. Die Riverside-Anlage von NOVONIX wird 2025 mit der kommerziellen Produktion beginnen und strebt eine jährliche Produktionsrate von 20.000 Tonnen an. Das Unternehmen erhielt einen Zuschuss von 100 Millionen USD vom DOE und einen Investitionssteuergutschrift von 103 Millionen USD für die Anlage. NOVONIX plant eine zweite Anlage im Südosten der USA mit einer anfänglichen Kapazität von 30.000 tpa, die auf 75.000 tpa ausgeweitet werden kann, und strebt eine Gesamtproduktion von 150.000 tpa an.
- Secured binding offtake agreement for 32,000 tonnes of synthetic graphite
- Received US$100 million DOE grant
- Awarded US$103 million investment tax credit
- Plans to expand production capacity to 150,000 tpa
- Agreement subject to production qualification milestones and financing requirements
- PowerCo can terminate agreement if milestones are not met
- Commercial supply not starting until 2027
Insights
This binding offtake agreement represents a significant milestone for NOVONIX, securing substantial future revenue streams from PowerCo SE. The deal for 32,000 tonnes of synthetic graphite over five years strengthens NOVONIX's market position in North America's emerging battery materials sector. The company's expansion plans, supported by
This deal validates NOVONIX's strategic position in the critical North American battery supply chain. PowerCo's commitment, backed by Volkswagen's ambitious EV plans and three gigafactory locations with 200 GWh/year combined capacity, signals strong market confidence. The agreement's timing aligns with increasing policy support for domestic battery material production and growing demand for EV battery components. NOVONIX's target of 150,000 tpa total production capacity demonstrates market optimism, though achieving this scale will require significant execution capability. The structured pricing agreement provides revenue visibility, while the binding nature of the deal helps secure NOVONIX's future market share in this rapidly growing sector.
- Offtake for a minimum of 32,000 tonnes of NOVONIX’s high-performance synthetic graphite material to be supplied to PowerCo from 2027-2031
BRISBANE, Australia, Nov. 24, 2024 (GLOBE NEWSWIRE) -- NOVONIX Limited (NASDAQ: NVX, ASX: NVX) (“NOVONIX” or the “Company”), a leading battery materials and technology company, and PowerCo SE (“PowerCo”), today announced the signing of a binding offtake agreement for a minimum of 32,000 tonnes of high-performance synthetic graphite material. The material will be supplied to PowerCo over a five-year term starting in 2027.
Established by Volkswagen in 2022, PowerCo is committed to ramp-up global battery cell production. PowerCo oversees international factory operations, advances in cell technology, and vertical integration of the battery value chain. PowerCo has identified three gigafactory locations – Salzgitter in Germany, Valencia in Spain, and St. Thomas in Canada - with a combined capacity of up to 200 GWh/year. NOVONIX and PowerCo previously announced the signing of a non-exclusive Testing and Development Agreement in March 2024.
NOVONIX’s Riverside facility is poised to become the first large-scale production site dedicated to high-performance synthetic graphite for the battery sector in North America and is slated to begin commercial production in 2025, with plans to grow output to 20,000 tonnes per annum (“tpa”) to meet current customer commitments. Previously, the Company announced the U.S. Department of Energy (“DOE”) Office of Manufacturing and Energy Supply Chains (“MESC”) awarded the Company a US
The Company is also progressing plans to build a second production facility, in the southeastern United States, that will have an initial capacity of 30,000 tpa and plans to expand that facility to 75,000 tpa. NOVONIX remains in discussions with the DOE Loan Program Office (“LPO”) for an Advanced Technology Vehicles Manufacturing Program loan to support the construction of this new production facility. NOVONIX’s current plans call for total production to increase to at least 150,000 tpa of synthetic graphite material to accommodate anticipated customer demand.
Key Deal Terms
- Offtake commitment is for a minimum of 32,000 tonnes over the five-year term of the agreement.
- Products will be priced under a pricing structure that has been agreed between the parties.
- The start of commercial supply is targeted to commence in 2027, subject to NOVONIX achieving agreed upon milestones regarding final mass production qualification and satisfying certain compliance criteria. NOVONIX must also secure financing commitments for the production facilities that will supply PowerCo product. If these milestones or requirements have not been satisfied, then PowerCo may terminate the agreement.
This announcement has been authorized for release by NOVONIX Chairman, Admiral Robert J. Natter, USN Ret.
About NOVONIX
NOVONIX is a leading battery technology company revolutionizing the global lithium-ion battery industry with innovative, sustainable technologies, high-performance materials, and more efficient production methods. The Company manufactures industry-leading battery cell testing equipment, is growing its high-performance synthetic graphite material manufacturing operations, and has developed a patented all-dry, zero-waste cathode synthesis process. Through advanced R&D capabilities, proprietary technology, and strategic partnerships, NOVONIX has gained a prominent position in the electric vehicle and energy storage systems battery industry and is powering a cleaner energy future.
To learn more, visit us at www.novonixgroup.com or on LinkedIn and X.
For NOVONIX Limited
Scott Espenshade, ir@novonixgroup.com (investors)
Stephanie Reid, media@novonixgroup.com (media)
Cautionary Note Regarding Forward-Looking Statements
This communication contains forward-looking statements about the Company and the industry in which we operate. Forward-looking statements can generally be identified by use of words such as “anticipate,” “believe,” “contemplate,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “target,” “will,” or “would,” or other similar expressions. Examples of forward-looking statements in this communication include, among others, statements we make regarding meeting our target production capacity and scaling of production at our Riverside facility, our plans to build a new production facility and achieve initial and total production capacities, our efforts to finance this new production facility with a loan from the LPO, our estimate of future anticipated North American graphite demand and our plan to be a significant supplier of high-performance synthetic graphite to the North American market.
We have based such statements on our current expectations and projections about future events and trends that we believe may affect our financial condition, results of operations, business strategy and financial needs. Such forward-looking statements involve and are subject to known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include, among others, the timely deployment and scaling of our furnace technology, our ability to meet the technical specifications and demand of our existing and future customers, including PowerCo, the accuracy of our estimates regarding market size, expenses, future revenue, capital requirements, needs and access for additional financing, the availability and impact and our compliance with the applicable terms of government support, including the DOE MESC grant and, if obtained, the LPO loan, our ability to obtain patent rights effective to protect our technologies and processes and successfully defend any challenges to such rights and prevent others from commercializing such technologies and processes, and regulatory developments in the United States, Australia and other jurisdictions. These and other factors that could affect our business and results are included in our filings with the U.S. Securities and Exchange Commission (“SEC”), including the Company’s most recent annual report on Form 20-F. Copies of these filings may be obtained by visiting our Investor Relations website at www.novonixgroup.com or the SEC's website at www.sec.gov.
Forward-looking statements are not guarantees of future performance or outcomes, and actual performance and outcomes may differ materially from those made in or suggested by the forward-looking statements contained in this communication. Accordingly, you should not place undue reliance on forward-looking statements. Any forward-looking statement in this communication is based only on information currently available to us and speaks only as of the date on which it is made. We undertake no obligation to update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise, except as required by law.
FAQ
What is the volume of NOVONIX's (NVX) offtake agreement with PowerCo?
When will NOVONIX (NVX) begin commercial production at the Riverside facility?
How much government funding has NOVONIX (NVX) received for the Riverside facility?
