Australian battery materials manufacturer Novonix Limited has announced a binding off-take agreement with global automotive giant Stellantis, marking a major step forward in securing critical battery materials for the region’s growing EV industry.
The Brisbane-based company will supply a minimum of 86,250 metric tons of high-performance synthetic graphite, with potential delivery volumes reaching up to 115,000 metric tons. The materials will be produced at Novonix’s Riverside facility in Chattanooga, Tennessee, and will be supplied to Stellantis’ cell manufacturing partners across North America over a five-year period from 2026 to 2031.
Novonix CEO Chris Burns emphasised the strategic importance of the deal, noting that it “allocates the remainder of our available volumes at our Riverside facility and a portion of volumes to be produced at our planned greenfield facility.” This agreement effectively maximises the company’s current production capacity while also supporting its expansion plans.
The company has revealed concurrent plans to strengthen its production capabilities in the southeastern United States. Novonix is advancing the development of a new greenfield facility that will initially be capable of producing 30,000 metric tons per annum (tpa) of synthetic graphite. The company has already outlined plans to expand this facility’s capacity to 75,000 tpa, demonstrating its commitment to meeting the growing demand for battery materials in North America.
This partnership represents a crucial step in developing a robust domestic supply chain for electric vehicle batteries in North America, reducing dependence on international suppliers for critical battery materials. The agreement aligns with broader industry efforts to localise battery production and secure essential materials within the region.
The timing of this deal is particularly significant as major automakers like Stellantis accelerate their transition to electric vehicles, requiring secure and reliable sources of battery materials. Synthetic graphite is a crucial component in lithium-ion batteries, playing a vital role in determining battery performance and longevity.
This collaboration between Novonix and Stellantis exemplifies the growing importance of establishing strong partnerships between material suppliers and automotive manufacturers as the industry continues its rapid shift toward electrification. The deal not only secures a stable supply of critical battery materials for Stellantis but also provides Novonix with the certainty needed to proceed with its ambitious expansion plans.