Novonix Limited, a leading battery materials and technology company, on Tuesday announced that its anode materials division finalized its $100 million grant award from the U.S. Department of Energy to expand domestic production of high-performance, synthetic graphite anode materials at its Riverfront Parkway facility at the former Alstom site.
Novonix on Oct. 20 had announced its selection to enter negotiations for $150 million in grant funding to support the construction of a new synthetic graphite manufacturing facility with a targeted initial output of 30,000 tons per year. Through negotiations with the DOE, the company successfully reallocated the funding more immediately to its Riverside facility which has a target production of up to 20,000 tons and, accordingly, resized the award to $100 million.
The DOE grant funding will support the installation and commissioning of equipment to produce the targeted 20,000 tons of capacity from Riverside. Under the terms of the grant, government funds must be matched by the recipient. In addition to the $100 million DOE grant funding, the company expects its cash position, customer revenues, additional government programs, strategic partners and other capital sources to fund planned growth, it was stated.
Dr. Chris Burns, CEO of Novonix said, “We are excited to complete the award negotiation with the DOE and expand the capacity of our Riverside facility. 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.
“Recent Chinese export controls on graphite reiterate the importance of building domestic supply in the U.S. 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.”
This grant funding through the Bipartisan Infrastructure Law (BIL) is aimed to support establishing a North American battery supply chain amidst surging demand and growing calls to onshore these critical industries, it was stated. Synthetic graphite is currently imported almost exclusively from China.
Novonix’s Riverside facility is due to begin production in late 2024 to support the company’s supply agreement with KORE Power, and the company will provide a progress update in the first quarter of 2024. The company continues to engage with other prospective customers about product qualification, production timelines, and potential supply agreements that could be supported from Riverside or future production facilities, officials said.
Novonix also continues to advance plans for a new production facility with an initial production target of at least 30,000 tons. The engineering and design of this facility will leverage the updated engineering specific to Riverside to be completed in the first quarter of next year, it was stated.
Officials said, "The company’s application for funding support under the DOE Loan Programs Office’s Advanced Technology Vehicles Manufacturing (ATVM) Program has been invited to Due Diligence (Phase 3). A loan through the ATVM program may provide leverage up to 80 percent of eligible project costs of the company's next facility. The timing of this next facility and Novonix’s subsequent plans to reach 150,000 tons of production in North America will be based on the timelines of potential customer demand."
Novonix is "a leading battery technology company revolutionizing the global lithium-ion battery industry with innovative, sustainable technologies, high-performance materials, and more efficient production methods. The company manufactures industry-leading battery cell testing equipment, is growing its high-performance synthetic graphite anode material manufacturing operations, and has developed an all-dry, zero-waste cathode synthesis process. Through advanced R&D capabilities, proprietary technology, and strategic partnerships, Novonix has gained a prominent position in the electric vehicle and energy storage systems battery industry and is powering a cleaner energy future."