NOVONIX Limited (ASX: NVX) Signs Binding Offtake Agreement with PowerCo SE
Offtake Agreement Details
NOVONIX Limited (ASX: NVX), a leader in battery materials and technology, has announced a binding offtake agreement with PowerCo SE. The agreement covers a minimum of 32,000 tonnes of high-performance synthetic graphite material to be supplied from 2027 to 2031. PowerCo is part of Volkswagen and focuses on boosting global battery cell production.
Production Commitment
The supply commitment is set for a five-year term, contingent on NOVONIX achieving specific milestones related to mass production qualification and compliance criteria. The company has previously received a US$100 million grant from the U.S. Department of Energy for its Riverside facility, where commercial production is anticipated to begin in 2025.
Future Growth Plans
NOVONIX plans to increase total production capacity to at least 150,000 tonnes per annum across its facilities. A second production site in the southeastern United States is under development, with an initial capacity of 30,000 tonnes per annum, expandable to 75,000 tonnes per annum. The company is engaged in discussions with the DOE for financing options to support this new facility.
Executive Commentary
Scott Espenshade, CEO of NOVONIX, expressed optimism regarding the partnership, noting, “This offtake agreement with PowerCo positions us to support the growing demand for high-performance materials in the battery sector.” The deal underscores NOVONIX’s commitment to establishing itself as a major player in the synthetic graphite market.
Motley Fool contributor Abbie Stokes has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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