- Advanced battery materials and technology company Novonix (NVX) completes its investment and supply agreement with Kore Power
- The agreement has seen Novonix buy a five per cent stake in Kore and will become the exclusive supplier of graphite anode materials to Kore’s large-scale battery cell manufacturing facility in the US
- The five-year agreement will see an initial 3000 tonnes of graphite anode material per annum and will begin in 2024
- For the interest, Novonix has purchased over 53.3 million shares of Kore, at US$7.50 (A$10.61) each, totalling US$25 million (A$35.38 million)
- On the market this morning, Novonix is up 6.4 per cent and trading at $7.50 per share
Novonix (NVX) has closed its investment and supply agreement with Kore Power, after announcing the deal last week.
Under the agreement, Novonix has purchased a five per cent stake in Kore and will become the exclusive supplier of graphite anode materials to Kore’s large-scale battery cell manufacturing facility in the US.
For the five per cent interest, Novonix has purchased over 3.3 million shares of Kore, at US$7.50 (A$10.61) each, totalling US$25 million (A$35.38 million). Novonix has paid for this through the issue of around 1.9 million shares and 50 per cent cash, funded through existing holdings and 50 per cent in NOVONIX shares.
The five-year agreement will see an initial 3000 tonnes of graphite anode material per annum and will begin in 2024. Notably, this could be ramped up to 12,000 tonnes per annum which will be subject to customer requirements.
“The completion of this transaction with Kore Power marks an important step towards establishing the domestic battery supply chain as the first large-volume contract of battery-grade synthetic graphite from a US-based supplier,” Co-founder and CE Chris Burns said.
“More than ever, the United States and its neighbour’s are realising the importance of building a sustainable and energy secure future.”
On the market this morning, Novonix was up 6.4 per cent, trading at $7.50 per share at 10:32 am AEDT.