NOVONIX andStellantisare teaming up in a six-year deal under which the Australian battery materials manufacturer will supply synthetic graphite for the automaker’s electric vehicles (EVs). The companies signed a binding offtakeagreementfor the graphite on November 12, 2024.
NOVONIX, Stellantis Offtake Agreement
To fulfill its obligations under the new binding offtake agreement with Stellantis, NOVONIX is putting its whole output into the project.Production will begin in 2025, and shipments will start going out in 2026.
The terms of the contract state that NOVONIX is to provide Stellantis with 86,250 to 115,000 metric tons of synthetic graphite, and a target annual production capacity of 20,000 metric tons.
NOVONIX Production Facilities
The goods will come from the battery company’s Chattanooga facility in Tennessee, which is also set to be the first large-scale synthetic graphite producer in North America for EV batteries.
NOVONIX is also planning to build another production facility that will be able to make an initial 30,000 metric tons of synthetic graphite per year, with the possibility of increasing this to 75,000.
Synthetic Graphite for EVs
Synthetic graphite is used to make an anode in EVs that is necessary for charging. The material offered by NOVONIX is very high-quality, and provides better stability, energy density, range, and performance.
This contract will give Stellantis a large boost in the industry, which is crucial as the company wants to ramp up its EV production in the U.S.
NOVONIX/Stellantis—Synthetic Graphite for EVs Summary
With the production of these made-in-America battery materials, NOVONIX plays an important part in boosting the U.S.’s domestic supply chain for EV batteries.
The new facilities in the works and plans for capacity increases will help NOVONIX stay prepared for further incoming contracts similar to Stellantis’ that are expected as the EV demand rises.
Image Credit: NOVONIX
