Australia's Novonix inks deal to supply synthetic graphite to Volkswagen-founded PowerCo

Australian battery materials supplier Novonix said on Monday it had signed a binding offtake agreement with Volkswagen-founded PowerCo for the supply of a minimum of 32,000 metric tons of high-performance synthetic graphite.

As part of the agreement, Novonix will supply synthetic graphite material for five years, starting in 2027.

PowerCo, founded by German automobile manufacturer Volkswagen, is a battery company overseeing international factory operations.


Novonix said its Riverside facility, located in Chattanooga, Tennessee, is expected to begin its commercial production in 2025, targeting output of 20,000 metric tons per annum (tpa).

The battery materials supplier also said the firm had been progressing its plans to erect a second production facility in the southeastern United States, which would have an initial capacity of 30,000 tpa with plans to expand it to 75,000 tpa.

The Brisbane-based company had earlier this year signed a supply deal with Panasonic Energy to supply synthetic graphite to the latter's North American operations.