Australia's Novonix inks deal to supply synthetic graphite to Volkswagen-founded PowerCo (updated)
24/11/2024 23:06
(Adds background and more details on the deal in paragraphs
2-6)
Nov 25 (Reuters) - Australian battery manufacturer
Novonix NVX.AX said on Monday it had signed a binding offtake
agreement with Volkswagen-founded VOWG_p.DE PowerCo for the
supply of a minimum of 32,000 metric tons of high-performance
synthetic graphite.
As part of the agreement, Novonix will supply synthetic
graphite material for five years, starting in 2027.
PowerCo, founded by German automobile manufacturer
Volkswagen, is a battery company overseeing international
factory operations.
Novonix said its Riverside facility, located in Chattanooga,
Tennessee, is expected to begin its commercial production in
2025, targeting output of 20,000 metric tons per annum (tpa).
The battery maker also said the firm had been progressing
its plans to erect a second production facility in the
southeastern United States, which would have an initial capacity
of 30,000 tpa with plans to expand it to 75,000 tpa.
The Brisbane-based company had earlier this year signed a
supply deal with Panasonic Energy to supply synthetic graphite
to the latter's North American operations.
(Reporting by Rajasik Mukherjee; Editing by Lisa Shumaker)
((Rajasik.Mukherjee@thomsonreuters.com;))