Novonix (ASX:NVX) Secures $754 Million DOE Loan and Signs Strategic Offtake Agreements
Investment and Financing
Novonix completed an institutional equity raise, obtaining net proceeds of US$26.6 million, and an additional US$5.0 million through a second placement with Phillips 66 Company. The company also finished a share purchase plan, accepting US$20.2 million of the US$25.8 million offered. The quarter-end cash balance stands at US$42.6 million, or US$67.8 million including placements.
Operational Achievements and Agreements
The company received a conditional commitment for a US$754 million loan from the U.S. Department of Energy to finance a new synthetic graphite manufacturing plant in Tennessee, NOVONIX Enterprise South. Novonix signed binding offtake agreements with Stellantis NV for up to 115,000 tonnes from 2026 through 2031 and with PowerCo SE for a minimum of 32,000 tonnes from 2027 through 2031.
Strategic Partnerships and Technology
Novonix entered collaboration agreements with ICoNiChem Widnes Limited and Voltaiq to enhance efficiency and quality in the battery industry. The company also formed an electrochemical impedance spectroscopy partnership with Gamry Instruments Inc. Additionally, Novonix was awarded a patent for a graphite/silicon alloy composite material in the United States, aimed at improving battery cycle life.
Regulatory Updates
Novonix joined American graphite producers in filing a trade case with the U.S. Department of Commerce and the International Trade Commission, challenging anticompetitive graphite prices on Chinese exports. The filing asserts that China is harming the U.S. domestic graphite industry by exporting artificially cheap battery-grade graphite.
Motley Fool contributor Lianne Eastty 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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