- Novonix (ASX:NVX) finalises its US$100 million grant from the US DOE to expand its domestic production of synthetic graphite anode materials
- Initial negotiations were for a $150,000 grant to build a new manufacturing facility, but funding is now being relocated to the company’s Riverside facility
- The riverside facility has a target production rate of 20,000tpa, and the funding will support the installation and commissioning of equipment to reach this capacity
- Novonix’s Riverside facility is due to begin production in late 2024 to support its supply agreements with KORE Power
- NVX shares are up 16.3 per cent, trading at 78.5 cents at 10:54 am AEDT
Novonix (ASX:NVX) has finalised its US$100 million (A$158 million) grant award from the US Department of Energy (DOE) to expand its domestic production of synthetic graphite anode materials.
Just a few weeks ago, the company announced it was in negotiations for a $150,000 grant to build a new manufacturing facility with an initial target output of 30,000 tonnes per annum. The funding has now been relocated to the company’s Riverside facility.
The riverside facility has a target production rate of 20,000 tonnes per annum, and the funding will support the installation and commissioning of equipment to reach this capacity.
“The ability to deploy $100 million towards Riverside’s recently increased production targets will have an immediate beneficial impact on the company’s plans and the battery materials supply chain here in North America,” NVX CEO Dr Chris Burns said.
“Recent Chinese export controls on graphite reiterate the importance of building domestic supply in the U.S. and we remain committed to continued expansion and building additional production facilities with our focus currently on reaching mass production at Riverside to demonstrate our ability to compete, both technically and commercially, on a global scale.”
Under the terms of the grant, government funds must be matched by the recipient, so in addition to the US$100 million DOE grant, Novonix expects its current cash receipts, revenues, additional government programs, and other capital sources to fund the operation.
Novonix’s Riverside facility is due to begin production in late 2024 to support its supply agreements with KORE Power.
NVX shares were up 16.3 per cent, trading at 78.5 cents at 10:54 am AEDT.