Novonix shares soar on US govt loan commitment
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More news: Novonix shares surged in morning trade after the battery technology company said it received a conditional commitment from the US government for a $1.2 billion loan to support financing for its new synthetic graphite manufacturing plant in Tennessee.
Novonix shares were up 10.3% to 64.5 cents by 11am AEDT, having slipped nearly 20% over the last month.
Novonix receives $1.2b conditional commitment from US govt
The news: Battery technology company Novonix has received a conditional commitment from the US Department of Energy (DOE) for a direct loan of up to USD754.8 million ($1.2 billion) for a new synthetic graphite manufacturing plant in Tennessee.
The numbers: At full capacity, the new facility is expected to produce approximately 31,500 tonnes of synthetic graphite per year, aimed at supporting the production of lithium-ion batteries for around 325,000 electric vehicles (EVs) annually.
The site is expected to reach full production capacity by the end of 2028 and create 450 full-time operational jobs and 500 construction jobs.
Novonix plans to subsequently expand the production capacity of the site to 75,000 tonnes per year, subject to demand and access to additional financing.
The context: The proposed financing is being offered under the DOE advanced technology vehicles manufacturing (ATVM) loan program. If finalised, the loan would be applied towards partially financing the construction of the new facility in Chattanooga, Tennessee, to manufacture graphite primarily for us in EV batteries.
Novonix noted that China currently has over 95% market share for battery grade graphite, and the company's efforts to onshore the synthetic graphite supply chain in North America is "supporting the path towards US energy independence".
The DOE loan remains subject to an environmental review, and Novonix satisfying certain technical, commercial, legal, environmental and financial conditions.
What they said: "This announcement is the culmination of years of hard work and is another critical milestone for our anode materials business towards our target production of 150,000 [tonnes per year] in North America," Novonix CEO Chris Burns said.
"This conditional commitment from the government to invest in our new facility continues to underscore the focus on localising critical materials in the battery supply chain, such as graphite".
The source: ASX announcement
