NOVONIX Limited and PowerCo SE have entered into a binding agreement for the supply of high-performance synthetic graphite to meet the needs of electric vehicle battery gigafactories .
The agreement provides for the delivery of a minimum of 32,000 tonnes over a five-year period , beginning in 2027, with a strategic focus on production facilities under development in North America.
Expansion of synthetic graphite production
With the growing demand for lithium-ion batteries , NOVONIX has made progress on its expansion plans. Its Riverside plant is positioned to become the first large-scale production site for synthetic graphite in North America , with a projected capacity of 20,000 tonnes per year (tpa) by 2025. In addition, they are preparing to build a second plant with an initial capacity of 30,000 tpa, which will be increased to 75,000 tpa.
This growth is supported by financial support from the U.S. Department of Energy, which has awarded NOVONIX a $100 million grant and a $103 million tax credit. These funds will help strengthen the infrastructure needed to meet supply commitments to PowerCo SE and other customers.
Boosting the battery cell supply chain
PowerCo SE, founded by Volkswagen in 2022, is committed to increasing global battery cell production capacity. This agreement with NOVONIX is part of the strategy to secure the supply chain of critical materials for electric vehicle batteries , essential for the success of its gigafactories in Germany, Spain and Canada, with a total capacity of up to 200 GWh/year.
The agreement establishes a minimum supply of synthetic graphite to be delivered at a price agreed between the parties, with specific quality and compliance conditions. If NOVONIX achieves the stated production milestones, supply will commence in 2027. Otherwise, PowerCo reserves the right to terminate the contract.
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Source: NOVONIX
Photo: Shutterstock
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