Novonix shares jump on Volkswagen supply deal
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More news: Novonix shares are up nearly 10% to 81.5 cents each after the battery technology company signed a binding offtake agreement with PowerCo SE, the battery cell subsidiary of automaker Volkswagen Group.
Under the deal, Novonix will supply a minimum of 32,000 tonnes of high performance synthetic graphite material to PowerCo over a five year term starting 2027. In May, the two companies signed an initial testing and development agreement.
Novonix signs binding supply agreement with Volkswagen unit
The news: Battery technology company Novonix has signed a binding offtake agreement with PowerCo SE, the battery cell subsidiary of automaker Volkswagen Group.
The numbers: Under the agreement, Novonix will supply a minimum of 32,000 tonnes of high performance synthetic graphite material to PowerCo over a five year term starting 2027. An undisclosed pricing structure has been agreed to between the parties.
The context: The deal builds on an initial testing and development agreement signed between the two companies in May. PowerCo, which oversees all global battery activities for Volkswagen, is developing three gigafactory locations in Germany, Spain, and Canada with a total capacity of up to 200 GWh per year.
Novonix is currently building a manufacturing facility in Tennessee with planned output of 20,000 tonnes per annum, which will become the first large-scale production site for synthetic graphite for the battery sector in North America.
It is progressing plans for a second production facility in southeastern US with an initial capacity of 30,000 tonnes per annum.
The source: ASX announcement
