Novonix shares soar on plans for second manufacturing plant
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The news: Novonix shares surged in early trading on the ASX as the battery materials and technology company nears an agreement to purchase land in Tennessee for its second synthetic graphite mass production plant.
The numbers: Novonix shares were up 7.4% to 80 cents by 11am AEDT, extending gains of nearly 20% over the last month.
The proposed Enterprise South plant is expected to reach full production capacity of 31,500 tonnes of synthetic graphite per year by the end of 2028 and is anticipated to create 500 full-time jobs.
The new facility, together with Novonix's existing 20,000 tonnes-per-year site at Riverside in Chattanooga, is planned to bring the company's total production capacity to over 50,000 tonnes per year by 2028.
The context: Nasdaq- and ASX-listed Novonix said it intends to enter a purchase and sale agreement with the City of Chattanooga, Tennessee and Hamilton County for the land, with the closing of the transaction subject to certain conditions.
Last month, Novonix announced a conditional commitment from the US Department of Energy through the Loan Programs Office for a direct loan of up to USD754.8 million ($1.2 billion) to be applied towards partially financing the proposed Enterprise South facility.
Synthetic graphite is used in lithium-ion batteries for products such as electric vehicles and grid energy storage systems.
What they said: "We have worked closely with the city, county and state over the past seven years of operations in Chattanooga and they have been great partners in supporting our growth plans," Novonix chief executive Chris Burns said.
"Securing this new site for our expansion is a continued example of that partnership.
"We have signed binding offtake agreements to supply synthetic graphite to Panasonic Energy, Stellantis, and PowerCo, which has our Riverside facility at capacity, and we’re looking forward to opening our doors at Enterprise South."
The source: ASX announcement
