Brisbane, Australia – December 17, 2024: NOVONIX Limited (NASDAQ: NVX, ASX: NVX), a leading battery materials and technology company, has announced a conditional commitment from the U.S. Department of Energy (DOE) through the Loan Programs Office (LPO) for a direct loan of up to US$754.8 million. This loan is aimed at partially financing the construction of a new synthetic graphite facility in Chattanooga, Tennessee.
The loan would be provided under the Advanced Technology Vehicles Manufacturing (ATVM) Loan Program and is expected to be used for the construction of a new facility to manufacture synthetic graphite, primarily for use in electric vehicle (EV) batteries.
Key Highlights:
- Loan Amount: Up to US$754.8 million (includes US$692 million in principal and US$62.8 million in capitalized interest).
- Facility Location: Chattanooga, Tennessee.
- Production Capacity: The facility is expected to produce 31,500 tonnes per annum (tpa) of synthetic graphite, enough to support the production of 325,000 EVs annually.
- Job Creation: The project will create 450 operational jobs and 500 construction jobs.
- Production Timeline: The new facility is expected to reach full production capacity by the end of 2028.
Strategic Importance:
- The new Chattanooga facility is a critical step in onshoring synthetic graphite production, which is crucial for the growing EV battery market.
- China currently controls over 95% of the market for battery-grade graphite, making the development of local, high-performance synthetic graphite essential for U.S. energy independence and EV production.
- NOVONIX’s Of-take Agreements: The company has secured binding offtake agreements to supply synthetic graphite to major partners like Panasonic Energy, Stellantis, and PowerCo, highlighting the strong demand for NOVONIX’s products.
Loan Terms:
- The loan is structured in two tranches:
- The first tranche will support the site and infrastructure for the facility, with 21,000 tpa of production capacity.
- The second tranche will support the expansion to 10,500 tpa.
- The total eligible investment for the facility is estimated at US$943.6 million.
Future Expansion:
- The first phase of the facility will have a 31,500 tpa capacity, with plans to expand up to 75,000 tpa in subsequent phases based on customer demand and additional financing.
CEO Remarks:
Dr. Chris Burns, CEO of NOVONIX, highlighted that this loan commitment represents a significant milestone towards the company’s goal of producing 150,000 tpa of synthetic graphite in North America. The partnership with the DOE underscores the importance of localizing critical materials like graphite, especially amid global supply chain challenges.
Environmental and Financial Conditions:
- The loan is contingent upon the completion of an environmental review and the fulfillment of various technical, commercial, legal, environmental, and financial conditions.
- A binding loan agreement will be finalized once due diligence is completed, necessary consents are obtained, and the NOVONIX Board approves the terms.
Conclusion:
This loan from the U.S. Department of Energy will play a crucial role in the expansion of NOVONIX’s operations in the electric vehicle battery market and the critical materials sector, helping to reduce dependency on foreign graphite sources and supporting the U.S. transition to a sustainable energy future.
