FX.co ★ Novonix Signs Agreement With PowerCo For 32,000 Tonnes Of Synthetic Graphite

Novonix Limited has formalized a binding offtake agreement with PowerCo SE, which entails the provision of a minimum of 32,000 tonnes of high-performance synthetic graphite over a period of five years, commencing in 2027. PowerCo, a subsidiary established by Volkswagen in 2022, aims to enhance global battery cell production. The company has earmarked three major gigafactory locations: Salzgitter in Germany, Valencia in Spain, and St. Thomas in Canada, collectively possessing a production capacity of up to 200 GWh per year.

Novonix's Riverside facility is set to become North America's premier, large-scale production site for high-performance synthetic graphite tailored for the battery sector. Commercial operations are projected to begin in 2025, with plans to scale up production to 20,000 tonnes per annum ("tpa") to satisfy existing customer commitments.

Additionally, Novonix is advancing plans for a second production site in the southeastern United States, initially targeting a capacity of 30,000 tpa, with expansion plans to elevate output to 75,000 tpa. The firm is actively engaging with the Department of Energy Loan Program Office to secure a loan from the Advanced Technology Vehicles Manufacturing Program, aiding in the construction of this facility. Present strategies outline a total production increase to at least 150,000 tpa of synthetic graphite, in alignment with projected customer demand.