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Novonix (ASX:NVX) has fallen -12% in intraday trades on Tuesday as the company announced its offtake partner, Stellantis, has nixed its agreement with NVX for delivery of the latter’s battery cell products.
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That deal saw NVX supplying a minimum of 86.2Ktpa, on paper, from the start of this year, and only ten months in, Stellantis has decided to step back.
“While NOVONIX is disappointed with this decision, it remains focused on its deliveries for Panasonic and PowerCo and continuing to provide samples to 15 current and potential customers for battery and industrial applications,” NVX wrote on Tuesday.
The graphite offtake deal’s termination comes at an interesting time: It was only signed a year ago (more or less). Whether it’s a coincidence, Stellantis has decided to walk away after exactly a year – which this HotCopper journalist can’t help but note would be quite neat from an accounting point of view – remains unknowable.
Stellantis is an automaking company, and it’s reported that the ultimate breakdown of the commercial relationship came down to an ‘inability to agree on product specifications.’ Flake graphite is notoriously tricky in the industry.
NVX last traded at 50cps.
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