VW & Stellantis sign graphite supply deal with Novonix

Novonix has concluded a binding purchase agreement with Volkswagen’s battery subsidiary PowerCo for at least 32,000 tonnes of synthetic graphite material over a period of five years starting from 2027.

Another supply agreement concluded shortly beforehand with the car manufacturer Stellantis is even more extensive: it provides for the purchase of at least 86,250 tonnes (potentially up to 115,000 tonnes) from the start of 2026 over a period of six years.

Both customers will be served from Novonix’s Riverside facility in Chattanooga, Tennessee, which was recently awarded a $100 million grant by the U.S. Department of Energy’s (DOE) Office of Manufacturing and Energy Supply Chains (MESC), as well as being selected for a US$103 million investment tax credit towards the funding of the Riverside facility.

According to Novonix, the planning for a second facility is already underway, which is to be built in the southeastern USA, and will have an initial capacity of 30,000 tpa and plans to expand that facility to 75,000 tpa. The company is in discussions with the DOE Loan Program Office (LPO) for an Advanced Technology Vehicles Manufacturing Program loan to support its construction.

“We are excited to have Stellantis’ commitment, now as our largest customer, to support their North American EV growth plans,” said Dr. Chris Burns, CEO of NOVONIX on the subject of the Stellantis supply deal. “This contract allocates the remainder of our available volumes at our Riverside facility and a portion of volumes to be produced at our planned 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.”

Recently, Novonix also announced a supply deal with Panasonic, which provides for a supply of at least 10,000 tonnes of synthetic graphite over a four year period, starting in 2025. LG subsidiary LG Energy Solution also announced a deal to develop graphite anode material for lithium-ion batteries in 2023, however, this has not materialized into a formal contract yet.

novonixgroup.com (PowerCo), novonixgroup.com (stellantis)