The City Council, after an earlier delay, on Tuesday approved a PILOT (payment in lieu of taxes) tax break for NOVONIX, which plans a major new development at the Enterprise South Industrial Park.
The County Commission followed suit on Wednesday.
The two bodies delayed the PILOT approval earlier after it was learned that NOVONIX had laid off 19 employees.
Rep. Chuck Fleischmann, speaking remotely on a large screen, on Monday endorsed continued city and county support for the firm with one operation going in Chattanooga and plans to launch an even bigger one at the Enterprise South.
He and other officials said they believe NOVONIX will be successful despite a downturn in the electric vehicle market.
NOVONIX has developed a furnace project for creating synthetic graphite, which is a key ingredient in lithium batteries.
NOVONIX earlier obtained a PILOT for an operation at the former Alstom site, and is seeking another related to plans to acquire 182 acres at Enterprise South and launch a $1 billion plant.
Rep.
Fleischmann said not every one has succeeded in the quest to produce synthetic graphite, but "we want them (NOVONIX) to succeed."
He said, "They are on firm footing. I do not think there will be a pause in funding."
Rep. Fleischmann said the production is in line with a focus on national defense. It was noted that almost all synthetic graphite now comes from Communist China.
He said the operation here "could help make us energy dominant."
Robert Long, NOVONIX CEO and chief financial officer, said the firm "is committed to Chattanooga. We've already invested $151 million here. That does not include personel and contractors."
Of its product, he said, "The sky's the limit on the demand side."
Mr. Long said NOVONIX is further along than any other U.S. company in the synthetic graphite development.
Sam Wills, of state economic development, also said the firm fits into the state aims, including job creation. He said NOVONIX "needs to get the land (at Enterprise South) before Department of Energy funds will continue flowing."
Plans are to break ground at Enterprise South in mid-2026 and be in operation in 2028.
Officials said the manufacturing process than is being used is much more environmentally friendly than the process used in China that is said to be very harmful to the health of workers there.
The meeting was hosted by the Chamber of Commerce and included most members of the City Council and County Commission.