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City, County Delay Approval Of NOVONIX Tax Breaks After Learning Of Layoffs

  • Wednesday, January 15, 2025

The city and county have delayed approving a new PILOT tax break for the NOVONIX EV vehicle battery materials and technology company after learning it laid off 19 local employees on Jan. 6.

Robert Long, NOVONIX chief financial officer, told the County Commission that the layoffs were related to delays in getting certain production equipment and that the workforce would be restored later this year.

He said it involved employees at both the Lookout Valley lab and the production site at the former Alstom facility.

Mr. Long said NOVONIX had 122 workers here and it is down to 103 currently. He said nine workers were laid off in Canada as part of the board decision. There are 84 remaining employees in Canada.

Commissioner Ken Smith said the firm showed "incredible bad faith and bad taste" in the layoffs two days prior to asking for the tax relief and promising major job growth. He said, "What you did buy is a greater magnifying glass going forward."

Commissioner Joe Graham said he wanted to make sure that if the NOVONIX project fails that the city and county are returned the 182 acres it plans to buy at the Enterprise South Industrial Park.

Commissioner Greg Beck said it appeared the firm gained little from the layoffs compared to "all this hoopla it caused."

Commissioner Warren Mackey said, "I just wonder why somebody didn't own up to us."

Chairman Jeff Eversole said, "We expect transparency. I think we've been let down here."

Mr. Long, who admitted the company made a "mis-step," said the laid off employees are receiving severance and will be first in line when rehiring starts.

that has been operating at the former Alstom site, is now planning to purchase 182 acres at the Enterprise South Industrial Park for a major new facility.

The firm plans an investment of at least $1 billion and the creation of at least 500 full-time jobs at the industrial park at Tyner.

In addition, the company foresees a Phase 2 development that would yield $2.1 billion in investment and 670 additional new full-time jobs.

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