NOVONIX and Stellantis Sign Binding Offtake Agreement for Synthetic Graphite

Australia-based battery materials company, NOVONIX, has entered into a major supply agreement with Stellantis. Under this deal, NOVONIX will supply Stellantis with high-performance synthetic graphite for its North American EV production, marking a crucial step in supporting the automaker’s ambitious plans for battery-electric vehicle (BEV) growth.

The six-year agreement, announced on Monday, specifies that NOVONIX will provide a minimum of 86,250 metric tons, with potential deliveries reaching up to 115,000 metric tons. This synthetic graphite will come from NOVONIX’s Riverside production facility in Chattanooga, Tennessee, with shipments starting in 2026. The Chattanooga facility, poised to be North America’s first large-scale producer of synthetic graphite for EV batteries, will dedicate its entire output to this contract, further emphasizing NOVONIX’s role in strengthening domestic battery supply chains.

Expanding U.S. Production –

In addition to the Riverside facility, NOVONIX is advancing plans to build a greenfield production site in the southeastern U.S. The new facility, initially capable of producing 30,000 metric tons annually, has the potential to expand to 75,000 metric tons per year, preparing for a projected rise in demand for battery materials from automakers like Stellantis.

Why Synthetic Graphite Matters –

Synthetic graphite is essential in EV batteries, forming the anode where lithium ions gather during charging. High-quality synthetic graphite, such as that produced by NOVONIX, enables higher energy density and stability, which are key to delivering longer EV range and better performance. By securing NOVONIX as a synthetic graphite supplier, Stellantis is ensuring access to reliable, U.S.-based battery materials, which is vital as the automaker scales its EV lineup across North America.

Chris Burns, CEO of NOVONIX, shared his excitement about the partnership, noting that “securing this long-term commitment from Stellantis not only supports our growth but also reinforces our role as a key player in onshoring the battery supply chain.” He added that NOVONIX’s expansion plans are directly aligned with the increased need for sustainable and locally produced battery materials in North America’s EV sector.

Supporting North American Battery Independence –

As the EV industry grows, establishing strong North American supply chains for battery components has become essential. This deal between NOVONIX and Stellantis not only benefits both companies but also contributes to North America’s energy security by reducing reliance on overseas suppliers. In addition to economic benefits, producing battery materials domestically offers environmental advantages, including reduced transportation emissions.

NOVONIX’s Chattanooga facility is set to start commercial production in 2025, with a target capacity of 20,000 metric tons per year. This facility, funded in part by a $100 million grant from the U.S. Department of Energy (DOE) and additional tax incentives, will meet Stellantis’ initial requirements. NOVONIX’s larger expansion plans could see total production reaching 150,000 metric tons annually to accommodate future demand.

This partnership with Stellantis underscores the importance of synthetic graphite in the EV industry and demonstrates both companies’ commitment to advancing sustainable transportation in North America.