Battery materials and technology company NOVONIX has signed a binding offtake agreement with PowerCo for a minimum of 32,000 tonnes of synthetic graphite material over a five-year term starting in 2027.
German automaker Volkswagen established PowerCo in 2022 to ramp up its global battery cell production. PowerCo oversees international factory operations, advances in cell technology and vertical integration of the battery value chain. It has identified three gigafactory locations—including St. Thomas, Ontario, Canada as well as Salzgitter in Germany and Valencia in Spain—with a combined annual capacity of up to 200 GWh.
PowerCo signed a non-exclusive testing and development agreement with NOVONIX in March 2024 as it looks to secure supply for the Canadian factory,
NOVONIX’s Riverside facility in Chattanooga, Tennessee is slated to begin commercial production in 2025 and is expected to reach an annual output of 20,000 tonnes.
The company previously announced the award of a $100-million DOE grant, and was selected for a $103-million investment tax credit towards the funding of the facility.
NOVONIX is also developing plans to build a second production facility in the southeastern US that will have an initial annual capacity of 30,000 tonnes and has the potential to expand to up to 75,000 tonnes. 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.
Source: NOVONIX
