Novonix Secures Conditional Loan for US Graphite Facility

Battery materials company Novonix has received a conditional commitment from the US Department of Energy (DOE) for a direct loan of up to $754.8 million. The loan, if finalized, will partially fund the construction of a synthetic graphite manufacturing facility in Chattanooga, Tennessee, under the DOE’s Advanced Technology Vehicles Manufacturing Loan Program.

The facility will focus on producing high-performance synthetic graphite for electric vehicle (EV) batteries, making it the first large-scale production site of its kind in North America. Commercial production is slated to begin in 2025, with an initial capacity of 20,000 tonnes per annum, expanding to 31,500 tonnes annually at full capacity by the end of 2028. This output could support the production of lithium-ion batteries for approximately 325,000 EVs per year.

Novonix’s CEO, Chris Burns, highlighted the significance of domestic production amid China’s dominance in the battery-grade graphite market, which currently accounts for over 95% of global supply. Recent measures by China to scrutinize graphite exports to the US underscore the need for localized supply chains. The facility is also expected to create 450 full-time operational jobs and 500 construction jobs.

This development follows earlier funding support, including a $100 million grant from the DOE’s Office of Manufacturing and Energy Supply Chains and a $103 million investment tax credit. Novonix has signed binding offtake agreements with major companies, including Panasonic Energy, Stellantis, and PowerCo, ensuring demand for its synthetic graphite output.

The Chattanooga project marks a critical step toward Novonix’s target production of 150,000 tonnes per annum of synthetic graphite in North America. The company’s plans include further expansion to support US energy independence and the growing EV market.