NOVONIX Limited, a leading EV vehicle battery materials and technology company 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 Australian-based 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.
Dr.
Chris Burns, CEO of NOVONIX, said, “We are thrilled to be announcing this next step in our further expansion in Chattanooga. We have worked closely with the city, county and state over the past seven years of operations in Chattanooga and they have been great partners in supporting our growth plans. Securing this new site for our expansion is a continued example of that partnership. We have signed binding offtake agreements to supply synthetic graphite to Panasonic Energy,1 Stellantis,2 and PowerCo,3 which has our Riverside facility at capacity, and we’re looking forward to opening our doors at Enterprise South.”
Located in the Enterprise South Industrial Park, NOVONIX Enterprise South is expected to reach full production capacity of 31,500 tons per year by the end of 2028 and is anticipated to create 500 full-time jobs. The facility, together with NOVONIX’s existing 20,000 tons per year facility at Riverside in Chattanooga, is planned to bring the company’s total production capacity to over 50,000 tons per year by 2028, it was stated.
Mayor Tim Kelly said, "This investment by NOVONIX shows that Chattanooga has the talent and the business environment to lead in the green economy. The city and our partners are committed to working with the company as they bring this new site online."
Weston Wamp, county mayor, said, “NOVONIX is wise to again bet on Hamilton County and our people as they forge the future of battery technology. From our earliest discussions with the leadership of NOVONIX, they were supportive of our vision to create career opportunities for Hamilton County students, which will be made possible through this investment.”
The company is asking city and county officials for a 15-year PILOT (Payment in lieu of Taxes) tax break in connection with the development.
NOVONIX would pay the full school tax, but otherwise be taxed under this schedule:
Year City County
Year 1 0% 0%
Year 2 25% 25%
Year 3 40% 40%
Year 4 50% 50%
Year 5 50% 50%
Year 6 50% 50%
Year 7 50% 50%
Year 8 50% 50%
Year 9 50% 50%
Year 10 50% 50%
Year 11 50% 50%
Year 12 50% 50%
Year 13 50% 50%
Year 14 50% 50%
Year 15 50% 50%
Year 16 & thereafter 100% 100%
In early December there was announced a conditional commitment to NOVONIX from the U.S. Department of Energy through the Loan Programs Office for a direct loan of up to $754.8 million ($692 million in principal and $62.8 million in capitalized interest) to be applied towards partially financing a proposed new facility in Chattanooga. The proposed financing is being offered under the DOE LPO’s Advanced Technology Vehicles Manufacturing Loan Program.
Officials said, "If finalized, the loan would be applied towards partially financing the construction of the new facility in Chattanooga to manufacture synthetic graphite primarily for use in electric vehicle batteries. At full capacity, the new facility is expected to produce approximately 31,500 tons per year of synthetic graphite, which can support the production of lithium-ion batteries for approximately 325,000 EVs each year."
Officials said China currently has over 95 percent market share for battery grade graphite.
The new facility is expected to reach full production capacity by the end of 2028 and is anticipated to create 450 full-time operational jobs and 500 construction jobs, officials said at the time.
Dr. Burns also said, “This announcement is the culmination of years of hard work and is another critical milestone for our anode materials business towards our target production of 150,000 tpa in North America. This conditional commitment from the government to invest in our new facility continues to underscore the focus on localizing critical materials in the battery supply chain, such as graphite. Recent announcements from China to further scrutinize the export of battery-grade graphite to the United States highlight the importance of domestic production of high-performance, battery-grade synthetic graphite. Our offtake agreements with strong partners have strengthened our leadership in onshoring the synthetic graphite supply chain in North America and supporting the path towards U.S. energy independence.”
This year, NOVONIX has signed binding offtake agreements to supply synthetic graphite to Panasonic Energy2, Stellantis3, and PowerCo4. To meet this demand, the company has previously discussed plans to build a new facility in the southeastern United States which could expand up to 75,000 tpa or production capacity. This proposed ATVM Program loan would support the construction of the first phase of the new facility and the initial production capacity of 31,500 tpa. NOVONIX plans to subsequently expand the production capacity of this site to its target of 75,000 tpa of synthetic graphite production, any such expansion being dependent on customer demand and access to additional financing.
Officials in December said NOVONIX’s Alstom facility "is poised to become the first large-scale production site dedicated to high-performance synthetic graphite for the battery sector in North America. It is slated to begin commercial production in 2025, with plans to grow output to 20,000 tons per year to meet current customer commitments."
Previously, the company announced that the DOE’s Office of Manufacturing and Energy Supply Chains awarded the company a $100 million grant and that it was selected for a $103 million investment tax credit towards the funding of the Riverside facility.