Novonix (ASX:NVX), a player in the battery materials and technology sector, is in line to receive a US$103 million tax credit under the U.S. Department of Energy’s (DOE) Qualifying Advanced Energy Project Allocation Program (48C program).
This incentive aims to enhance the production of critical battery materials at Novonix’s Riverside facility at Chattanooga, Tennessee.
The 48C tax credit, initially introduced in 2009 and revitalized with an additional US$10 billion funding in 2022, encourages clean energy manufacturing, recycling, and decarbonization efforts. It strives to stimulate job creation, reduce industrial emissions, and strengthen domestic production of essential clean-energy products and materials.
In order to fully claim this tax credit, Novonix must meet the requirements outlined in Section 48C of the Internal Revenue Code, along with operational and employment plans specified in the application to the Internal Revenue Service. The company has a two-year window to fulfill these obligations.
Novonix is one one of the inaugural beneficiaries of this highly coveted program. The development underscores the company’s strong backing from the U.S. government. Previously, Novonix secured a US$100 million grant from the DOE’s Office of Manufacturing & Energy Supply Chains, facilitated by the Bipartisan Infrastructure Law.
“With this support, we believe we are poised to further expand our operations, create high-quality U.S. jobs, and advance our mission of developing technologies and materials to service the EV and ESS sectors. This green light bolsters our resolve to continue pushing boundaries, delivering shareholder value, and contributing to a cleaner, brighter future for all,” CEO of Novonix Dr. Chris Burns said.
NVX has been trading at 90 cents.