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Highlights
- Novonix (NVX) receives conditional loan commitment of $US754.8 million from U.S. Department of Energy.
- New Tennessee facility to produce 31,500 tonnes of synthetic graphite annually by 2028.
- Initiative reduces reliance on China for battery-grade graphite.
Novonix (ASX:NVX), a Brisbane-based battery materials company, has secured a conditional loan commitment of up to $US754.8 million ($1.2 billion) from the U.S. Department of Energy (DOE). This financing supports the construction of a synthetic graphite production facility in Chattanooga, Tennessee, aimed at bolstering the supply of graphite for electric vehicle (EV) batteries and reducing reliance on China, which dominates global graphite production.
The loan, part of the DOE's Advanced Technology Vehicles Manufacturing (ATVM) Loan Program, includes $US692 million in principal and $US62.8 million in capitalized interest. The new facility is expected to produce 31,500 tonnes of synthetic graphite annually, sufficient for approximately 325,000 EV batteries. The plant is projected to reach full production by the end of 2028, creating 450 permanent jobs and 500 construction jobs.
Strengthening Domestic Supply Chains
Novonix’s initiative aligns with the U.S. government's strategy to strengthen domestic supply chains for critical materials. CEO Dr. Chris Burns emphasized the importance of localizing battery-grade graphite production, especially amid recent restrictions by China on its graphite exports to the U.S. The company's goal is to achieve annual production of 150,000 tonnes of synthetic graphite in North America, supported by strong offtake agreements with industry leaders such as Panasonic Energy, Stellantis, and PowerCo.
Facility Details and Expansion Plans
The Chattanooga facility represents the first large-scale production site for high-performance synthetic graphite in North America. The initial phase targets a production capacity of 31,500 tonnes per annum, with plans to scale up to 75,000 tonnes annually based on customer demand and additional financing. The project builds on the success of Novonix’s existing Riverside facility in Tennessee, which is set to commence commercial production in 2025 with an initial capacity of 20,000 tonnes.
Loan Terms and Next Steps
The DOE loan will be structured in two tranches tied to phased completion milestones. While the commitment underscores strong governmental support, final approval depends on completing environmental reviews, due diligence, and meeting technical, financial, and legal conditions.
This strategic move places Novonix at the forefront of efforts to localize critical materials production, reducing dependence on foreign markets while driving innovation in the EV battery supply chain.
