NOVONIX Finalizes US$100 Million Grant Award from U.S. Department of Energy
- Funding underpins doubling of production capacity to 20,000 tpa at existing Riverside (Chattanooga) facility -
- Recent Chinese export controls on graphite highlight the importance of US based suppliers such as NOVONIX -
BRISBANE, Australia, November 1, 2023 (GLOBE NEWSWIRE) -- NOVONIX Limited (NASDAQ: NVX, ASX: NVX) (“NOVONIX” or the “Company”), a leading battery materials and technology company, today announced that its NOVONIX Anode Materials division finalized its US$100 million grant award from the U.S. Department of Energy (DOE) to expand domestic production of high-performance, synthetic graphite anode materials at its Riverside facility in Chattanooga, Tennessee.
On 20 October 2022, NOVONIX announced its selection to enter negotiations for US$150 million in grant funding to support the construction of a new synthetic graphite manufacturing facility with a targeted initial output of 30,000 tonnes per annum (tpa). Through negotiations with the DOE, the Company successfully reallocated the funding more immediately to its Riverside facility which has a target production of up to 20,000 tpa and, accordingly, resized the award to US$100 million. The DOE grant funding will support the installation and commissioning of equipment to produce the targeted 20,000 tpa of capacity from Riverside. Under the terms of the grant, government funds must be matched by the recipient. In addition to the US$100 million DOE grant funding, the Company expects its cash position, customer revenues, additional government programs, strategic partners and other capital sources to fund planned growth.
“We are excited to complete the award negotiation with the DOE and expand the capacity of our Riverside facility. The ability to deploy $100 million towards Riverside’s recently increased production targets will have an immediate beneficial impact on the Company’s plans and the battery materials supply chain here in North America,” said Dr. Chris Burns, CEO of NOVONIX.
“Recent Chinese export controls on graphite reiterate the importance of building domestic supply in the U.S. We remain committed to continued expansion and building additional production facilities with our focus currently on reaching mass production at Riverside to demonstrate our ability to compete, both technically and commercially, on a global scale.”
This funding from DOE’s Office of Manufacturing & Energy Supply Chains (MESC) is enabled by the Bipartisan Infrastructure Law (BIL) with the goals of strengthening the United States’ battery supply chain and of supporting American manufacturing, workforce, and innovation in critical energy industries. Synthetic graphite is currently imported almost exclusively from China, and NOVONIX’s plant aims to be the first large-scale battery-grade synthetic graphite manufacturing operation in the US. MESC will work closely with NOVONIX to oversee the award over the course of the project through full operation.
NOVONIX’s Riverside facility is due to begin production in late 2024 to support the Company’s supply agreement with KORE Power, and the Company will provide a progress update in the first quarter of 2024. The Company continues to engage with other prospective customers about product qualification, production timelines, and potential supply agreements that could be supported from Riverside or future production facilities.
NOVONIX also continues to advance plans for a new production facility with an initial production target of at least 30,000 tpa. The engineering and design of this facility will leverage the updated engineering specific to Riverside to be completed in the first quarter of next year.
The Company continues to pursue funding support under the DOE Loan Programs Office’s Advanced Technology Vehicles Manufacturing (ATVM) Program. A loan through the ATVM program may provide leverage up to 80% of eligible project costs of the Company's next facility. The timing of this next facility and NOVONIX’s subsequent plans to reach 150,000 tpa of production in North America will be based on the timelines of potential customer demand.
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 anode material manufacturing operations, and has developed an 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)
Lori Mcleod, media@novonixgroup.com (media)
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