NOVONIX and PowerCo offtake agreement details

NOVONIX (ASX:NVX) has entered a binding offtake agreement with PowerCo SE. The partnership involves NOVONIX supplying at least 32,000 tonnes of synthetic graphite to PowerCo from 2027 to 2031. PowerCo, a Volkswagen company, is boosting its battery cell production globally.

Overview and strategic outlook for NOVONIX

NOVONIX (ASX:NVX) has confirmed a significant offtake agreement with PowerCo SE, committing to deliver 32,000 tonnes of synthetic graphite over a five-year period beginning in 2027. PowerCo, backed by Volkswagen, is focused on enlarging its battery cell production with gigafactories planned in Germany, Spain, and Canada. NOVONIX will begin commercial production at its Riverside facility in North America by 2025, targeting an initial output of 20,000 tonnes annually. Additionally, NOVONIX plans a second facility in the southeastern U.S. which could expand to a capacity of 75,000 tonnes per annum. The U.S. Department of Energy is supporting NOVONIX with significant financial assistance, including a US$100 million grant and US$103 million tax credit. The agreement with PowerCo is conditional on successful production qualification and financing arrangements. NOVONIX's ambitions include revolutionizing the lithium-ion battery sector with sustainable, high-performance materials, aiming to significantly increase its production capacity to meet rising market demands.

Executive commentary on the strategic partnership

We are pleased to partner with PowerCo as they expand their global battery cell production. This agreement aligns with our strategy to supply high-performance materials for electric vehicles and energy storage systems.