Panasonic Energy Co., Ltd., a Panasonic Group Company, has recently inked a binding off-take agreement with NOVONIX Limited, a leading battery materials and technology firm based in Queensland, Australia. The agreement is geared towards securing the supply of synthetic graphite, a critical component in the anodes of lithium-ion batteries utilized in electric vehicles (EVs).
Supply chain strengthening and environmental impact reduction
Panasonic Energy’s decision aligns with its Medium- to Long-term Strategy aimed at fortifying its North America-centric supply chain and mitigating its environmental footprint. The synthetic graphite procured from NOVONIX will be integrated into Panasonic Energy’s EV battery manufacturing facilities in the U.S., with shipments slated to commence in 2025 from NOVONIX’s plant in Tennessee.
Environmental goals
Panasonic Energy has set ambitious targets to slash the carbon footprint of the entire lithium-ion battery supply chain for EVs by 50% by 2031, compared to 2022 levels. The company recognizes that a substantial portion of emissions emanates from resource mining, raw material processing, and logistics. As part of its commitment to environmental stewardship, Panasonic Energy is not only focusing on neutralizing emissions from battery manufacturing but also actively addressing environmental impact reduction in the upstream supply chain.
Synthetic graphite procurement
The agreement with NOVONIX will enable Panasonic Energy to access 10,000 tons of graphite from NOVONIX’s North American operations over a span of four years. Synthetic graphite, one of the key materials for lithium-ion batteries, offers superior durability, ensuring reliable performance throughout charging and discharging cycles. Traditionally, synthetic graphite is produced through a lengthy high-temperature process in Acheson furnaces, lasting up to 30 days per production cycle. However, this method is energy-intensive and results in significant CO2 emissions.
Innovative production methods
NOVONIX’s cutting-edge graphitization furnaces represent a breakthrough in large-scale synthetic graphite production, drastically reducing production time to just around three days per cycle. This innovation is poised to lower CO2 emissions compared to conventional Acheson furnaces, making significant strides towards Panasonic Energy’s carbon footprint reduction target.
Market expansion and sustainability
In the burgeoning North American EV market, Panasonic Energy aims to drive the widespread adoption of electric vehicles by supplying high-quality, high-capacity batteries with extended driving range capabilities. Leveraging its expertise and experience, the company aims to lead the lithium-ion battery industry while collaborating with strategic partners to accelerate efforts towards zero emissions and sustainable development.
Panasonic Energy’s collaboration with NOVONIX signifies a strategic move towards enhancing its supply chain resilience and reducing its environmental impact, while also positioning itself as a frontrunner in the EV battery market.