Novonix wins supply deal from Panasonic Energy

The news: Battery materials and technology company Novonix has signed a binding off-take agreement to supply synthetic graphite anode material to electric vehicle battery maker Panasonic Energy.

The numbers: Novonix will supply at least 10,000 tonnes of anode material for use in Panasonic’s US plants between 2025 to 2028. Both companies have the option to increase volumes if required, while Panasonic can cut volumes or terminate the contract if Novonix is not able to achieve agreed-upon production milestones.

The context: The dual-listed Novonix said it had been working with Panasonic on product sampling and testing. The company’s Riverside facility in Tennessee will become the first large-scale production site for high-performance synthetic graphite for the battery sector in North America when it starts production in late 2024. The facility recently secured a grant award from the US Department of Energy.

Panasonic is expanding its production of EV batteries in North America and also working to reduce the carbon footprint of its entire battery supply chain for EV’s by 50% in 2031.