Saturday, 10 February 2024
by Earn Media
NOVONIX (ASX:NVX) and US electric vehicle battery maker Panasonic Energy have signed an offtake agreement for high-performance synthetic graphite anode material to be supplied to Pansonic’s North American operations.
NOVONIX, which has a $268.87 million market capitalisation, will supply the graphite material from its Riverside facility in Chattanooga, Tennessee, US.
Under the agreement, Panasonic has agreed to purchase at least 10,000 tonnes of anode material for use in its US plants from 2025 to 2028. During the term, if additional volumes are requested by Panasonic, NOVONIX will use its best efforts to deliver the increased volumes.
Panasonic holds the right to reduce the 10,000-tonne offtake volume (up to 20%) if certain NOVONIX mass production qualification milestones are not achieved. Further, Panasonic can terminate the agreement if there is a ‘substantial’ delay in achieving the milestones.
NOVONIX Chief Executive Officer Chris Burns says these types of offtake agreements with ‘high-quality’ partners solidify the company’s position as a leader in onshoring the supply chain of synthetic graphite.
“We look forward to expanding our long-standing relationship with Panasonic Energy to support its growth efforts in North America.”
Shares in NOVONIX were up 15.45% to $0.71 as of 12:40pm AEDT on 9 February 2024.
Panasonic Energy Chief Technical Officer (CTO) Shoichiro Watanabe says: “As we continue to grow as an EV battery leader in North America, we are thrilled about the partnership with NOVONIX, which will bring innovative technologies to key anode material.
In addition, I believe this collaboration will help us achieve our medium-to-long-term management goals to strengthen the local supply chain and reduce our carbon footprint.”
“We are thrilled about the partnership with NOVONIX, which will bring innovative technologies to key anode material”
The deal comes as Panasonic works to expand its production of EV batteries in North America to meet increasing demand while also bolstering its percentage of materials procured locally.
Both parties began working together on product sampling and testing after NOVONIX signed a memorandum of understanding with Panasonic subsidiary Sanyo Electric in 2019.
NOVONIX is a battery technology company focused on ‘revolutionising’ the global lithium-ion battery industry with innovative, sustainable technologies, high-performance materials, and more efficient production methods.
The company’s Riverside facility is touted to become the first ‘large-scale’ production site dedicated to high-performance synthetic graphite for the battery sector in North America and is slated to begin production in late 2024.
Panasonic Energy was established in April 2022 as part of the Panasonic Group’s switch to an operating company system.
Write to Adam Drought at Mining.com.au