NOVONIX officials announced it will expand its Chattanooga manufacturing operations.
The project represents an investment of approximately $1 billion and the creation of 500 new jobs, with competitive wages, in Hamilton County.
“This investment from NOVONIX represents a huge vote of confidence in the region and our ability to support future-focused companies and a well-trained, well-paid workforce,” said Chattanooga Chamber Vice President of Economic and Talent Development Adam Myers.
NOVONIX established its anode materials business in March 2017 to develop and commercialize ultra-long-life, high performance anode material for the lithium-ion battery market, specifically for electric vehicles and similar storage applications.
Last year, NOVONIX saw a breakthrough at its Chattanooga facility, leading to a first-of-its-kind furnace technology to produce synthetic graphite for use in electric vehicle batteries.
Thanks to this cutting-edge technology, NOVONIX is looking to expand its Chattanooga operations.
The Department of Energy has announced a conditional commitment to NOVONIX for a direct loan of up to $754.8 million to be applied towards partially financing a proposed new facility in Chattanooga. At full capacity, the new facility will increase the company’s production capacity by 31,500 tons, which can support the production of lithium-ion batteries for approximately 325,000 EVs each year.
“We have partnered with NOVONIX to invest boldly into public education to train their future workforce,” said Hamilton County Mayor Weston Wamp. “This investment by Novonix is a testament to the talent and work ethic of the people of Hamilton County.”
“Chattanooga’s future has never been so bright,” said Chattanooga Mayor Tim Kelly, “This historic investment will create hundreds of quality jobs and cement us as a leader in battery technology, with transformational research and technology assets based in Chattanooga. Thank you to the Department of Energy and NOVONIX for recognizing that we have the talented workers and supportive business environment to make this project a success.”
Over the last five years, the Chattanooga Area Chamber of Commerce has supported more than 25 economic development projects in the region, resulting in 4,500 new jobs and $1.4 billion in capital investment.
The federal Department of Energy had this announcement:
As part of the Biden-Harris Administration’s Investing in America agenda, the U.S. Department of Energy (DOE), through the Loan Programs Office (LPO), today announced a conditional commitment for a direct loan of up to $754.8 million ($692 million in principal and $62.8 million in capitalized interest) to a subsidiary of NOVONIX Limited (NOVONIX). NOVONIX’s loan application to LPO was substantially completed in May 2023. The loan would help finance the construction of NOVONIX’s new facility in Chattanooga, Tennessee, to manufacture synthetic graphite, a critical component used in electric vehicle (EV) batteries—underscoring President Biden’s deep commitment to expanding domestic manufacturing while delivering new economic opportunities to communities in every corner of the country.
In support of President Biden and Vice President Harris’ efforts to deliver good-paying, high-quality job opportunities to communities across the country, the project is anticipated to create 450 full-time operations jobs and 500 construction jobs. The workers at the Chattanooga facility will help strengthen America’s energy independence, boost the regional economy, and add to the nearly 16 million jobs created since President Biden and Vice President Harris took office.
Synthetic graphite, often blended with natural graphite, is the most commonly used anode material for EV lithium-ion battery manufacturing and is currently imported almost exclusively from China. Synthetic graphite can be manufactured at a higher purity than natural graphite, leading to improvements in battery performance, reliability, and longevity. There is currently no large-scale battery-grade synthetic graphite manufacturing capacity in North America, creating a pronounced gap in both the domestic automotive supply chain and clean energy supply chain.
At full capacity, the facility is expected to produce 31,500 metric tonnes per year of synthetic graphite, which can support the production of lithium-ion batteries for approximately 325,000 EVs each year.
The sponsor, NOVONIX, is a battery materials and technology company that aims to serve the global battery supply chain for EVs. The company’s novel graphitization process involves the usage of continuous induction-based furnaces, which have much lower energy consumption, emissions, and local pollution profiles compared to traditional synthetic graphite manufacturing processes. This year, NOVONIX has signed binding offtake agreements to supply synthetic graphite to Panasonic Energy, Stellantis and PowerCo for graphite produced at an existing facility separate from this conditional commitment.
LPO works with all borrowers to develop and implement a strong and binding Community Benefits Plan (CBP) that ensures borrowers meaningfully engage with community, environmental, and labor groups to create good-paying jobs, improve the well-being of residents and workers, and minimize and mitigate any environmental impacts. NOVONIX has been a part of the Chattanooga community since 2017.
NOVONIX plans to engage with local colleges, high schools, vocational training institutes such as the Chattanooga State Community College, and technical colleges to establish curriculum, build training programs, and invest in the local workforce. The borrower has fostered partnerships with Historically Black Colleges and Universities, such as Tennessee State University and other local colleges to create benefits in disadvantaged communities. NOVONIX has also engaged with Tennessee State University’s Engineering Department and participates in the University’s on-campus hiring fairs.
NOVONIX also works with the local nonprofit Project Return to offer employment opportunities to those recently released from prison. In addition, it has created the NOVONIX Institute of Advanced Battery Technology (NIABT), a local high school training program. NIABT engages with the Hamilton County Public Schools to recruit for this program. In partnership with Hamilton County Schools’ “Future Ready” program, NIABT provides technical curriculum of STEM-based learning to a community of first-generation college students, many from low-income and minority communities, at Lookout Valley High School.
As part of its continued commitment to local workers, NOVONIX will hire displaced fossil fuel workers through its relationships with Phillips 66 Company and Right Management.
In addition, the company’s construction partners utilize union labor, including the International Brotherhood of Electrical Workers (IBEW), Plumbers and Steamfitters, Sheet Metal Workers, Ironworkers, and Laborers’ International Union of North America (LiUNA). At the company’s existing facility, 75 local union tradespeople are working each day on average. The tradespeople come from Locals 175 (Electricians), 5 (Sheet Metal), 43 (Plumbers and Steamfitters), 704 (Ironworkers) and 846 (Laborers). NOVONIX would leverage these existing relationships with local labor unions in the new facility supported by this conditional commitment.
If finalized, the loan would be offered through the Advanced Technology Vehicles Manufacturing (ATVM) Loan Program, which provides loans to support U.S. manufacturing of advanced technology vehicles, qualifying components, and materials that improve fuel economy. Today’s announcement is LPO’s latest effort to bolster domestic supply chains of critical minerals and materials, strengthening the nation’s energy security.
While this conditional commitment indicates DOE’s intent to finance the project, DOE must complete an environmental review, and the company must satisfy certain technical, legal, environmental, and financial conditions before the Department can decide whether to enter into definitive financing documents and fund the loan.