Panasonic Energy and Novonix ink binding off-take agreement

• Novonix (ASX:NVX) teams up with Panasonic Energy to supply 10,000tpa of anode materials for North American EV operations
• Panasonic is working to expand its production of EV batteries in North America to meet the increased demand
• Novonix’s Riverside facility is the first large-scale production site dedicated to high-performance synthetic graphite for the battery sector in North America
• NVX has plans to grow output from 10,000 tpa to 20,000 tpa to meet anticipated customer demand
• NVX shares are up 17.9 per cent, trading at 72.5 cents at 11:46 am AEDT

Battery materials and technology company Novonix (ASX:NVX) is teaming up with Panasonic Energy to supply battery anode materials for its North American EV operations.

The binding off-take agreement is for 10,000 tonnes of high-performance synthetic graphite anode material from Novnix’s Riverside facility in Chattanooga, Tennessee.

Novonix’s Riverside facility will become the first large-scale production site dedicated to high-performance synthetic graphite for the battery sector in North America.

As a leading battery cell provider, Panasonic is working to expand its production of EV batteries in North America to meet increased demand while also increasing the percentage of materials procured locally.

Panasonic intends to use the materials across its multiple US plants from 2025 to 2028. During the term, if additional volumes are requested by Panasonic, NVX said it would “use its best effort” to deliver the increased volumes.

Historically, NVX and Panasonic Energy began working together on product sampling and testing after signing a memorandum of understanding with subsidiary, Sanyo Electric back in 2019.

“Off-take agreements with high-quality partners such as Panasonic Energy solidify NOVONIX’s position as a leader in onshoring the supply chain of synthetic graphite and accelerating the adoption of clean energy in the industry,” NVX CEO Chris Burns said.

Production is expected to take off in late 2024, with plans to grow output to 20,000 tonnes per annum (tpa) to meet anticipated customer demand.

NVX shares were up 17.9 per cent, trading at 72.5 cents at 11:46 am AEDT.