Novonix jumps on supply deal with Stellantis
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The news: Battery technology company Novonix has signed a binding off-take agreement with automaker Stellantis to supply high-performance synthetic graphite material, sending its shares higher.
The numbers: Under the agreement, Novonix will supply a minimum of 86,250 metric tons, and up to a target volume of 115,000 metric tons of synthetic graphite from 2026 until 2031, from its Riverside facility in Chattanooga, Tennessee, to Stellantis' cell manufacturing partners in North America.
Novonix shares were up more than 18% to 85 cents in early trading on the ASX.
The context: Novonix is building a manufacturing facility in Tennessee, which will become the first large-scale production site for high-performance synthetic graphite for the battery sector in North America.
It already has a deal to supply Panasonic from the facility, and CEO Chris Burns said the Stellantis deal allocates the remainder of available volumes at Riverside and a portion of volumes to be produced at its planned greenfield facility in southeastern US.
The source: ASX
