Novonix completes independent engineering assessment of Riverside facility

Novonix Limited (ASX: $NVX) has completed an independent engineering assessment of its Riverside production facility in Chattanooga, Tennessee. The assessment, conducted by Hatch Ltd, a global engineering and consulting firm, evaluated various aspects including operations, project execution, financial model assumptions, graphite market, production technology, environmental considerations, feedstock, and supply agreements. The completion of this assessment reaffirms Novonix's progress towards achieving its initial 3,000 tonnes per annum (tpa) of commercial production capacity at the Riverside facility by the end of 2024, with all primary production equipment in place or ordered.

Executive Commentary on Independent Engineering Assessment

Dr. Chris Burns, CEO of Novonix, stated, 'The completion of the independent engineering review provides us with a high degree of confidence as we advance our overarching plans towards production and deliveries from Riverside. The completion of this review represents a significant milestone that reinforces our progress and underscores our position as pioneers in localizing lower-emissions synthetic graphite supply in North America.'

Summary of Novonix's Progress and Outlook

Novonix's completion of the independent engineering assessment at the Riverside facility marks a significant milestone in its journey towards achieving commercial production capacity. With the facility on track to reach its targeted capacity of 20,000 tpa, the company anticipates achieving operating margins in the range of 23-30%, with an operating cost range of US$6-8/kg and an anticipated selling price of US$7-10/kg. The receipt of significant government support, including a US$100 million grant and a US$103 million tax credit, further strengthens Novonix's position. The company's dedication to localizing the battery supply chain and its leadership in the synthetic graphite market position it for success and innovation in battery materials manufacturing. Novonix's ambitions and progress reflect a promising outlook for its future endeavors in the electric vehicle and energy storage systems battery industry.