Australia’s Novonix wins contract to supply Panasonic EV battery manufacturing

Australian electric vehicle battery materials and technology company Novonix announced has signed an agreement to supply high-performance synthetic graphite anode material to Panasonic Energy.

Novonix, headquartered in Brisbane but with operations in Nova Scotia, Canada, and Tennessee in the US, and which listed on both the Australian Stock Exchange (ASX) and Nasdaq stock exchange, announced on Friday the signing of a binding off-take agreement for materials to be supplied to Panasonic Energy’s North American operations.

Novonix will 10,000 tonnes of supply high-performance synthetic graphite anode material from its Riverside facility in Chattanooga, Tennessee, for use in Panasonic Energy’s US plants between 2025 and 2028.

If more volume is required during that period, Panasonic Energy – a leading manufacturer of EV batteries in North America and supplier of batteries to American EV giant Tesla – Novonix will endeavour to deliver increased volume.

Panasonic Energy is currently in the process of expanding its EV battery production in North America to meet increased demand while also increasing the percentage of materials it procures from local sources.

Moreover, Panasonic Energy is aiming to reduce the carbon footprint of its entire lithium-ion battery supply chain for EVs by 50% in 2031 compared to 2022 levels.

These efforts are bolstered by the United States’ Inflation Reduction Act (IRA) passed in 2022, which was formed to support the growth of local clean energy technology manufacturing and provides generous tax incentives to companies to build and supply locally.

Specifically, in the case of Novonix and Panasonic Energy, their synthetic graphite anode production and battery cell production, respectively, make the companies eligible for an Advanced Manufacturing Production Credit.

“As we continue to grow as an EV battery leader in North America, we are thrilled about the partnership with Novonix, which will bring innovative technologies to key anode material,” said Dr. Shoichiro Watanabe, CTO of Panasonic Energy.

“In addition, I believe this collaboration will help us achieve our medium-to-long-term management goals to strengthen the local supply chain and reduce our carbon footprint.”

Novonix’s Riverside facility is on track to become the first large-scale production site dedicated to high-performance synthetic graphite for the battery sector in North America, with production expected to begin later this year.

“We are excited to announce the finalization of a binding off-take agreement with Panasonic Energy to become a supplier of key anode material for its North American based facilities,” said Dr. Chris Burns, CEO of Novonix.

“Off-take agreements with high-quality partners such as Panasonic Energy solidify Novonix’s position as a leader in onshoring the supply chain of synthetic graphite and accelerating the adoption of clean energy in the industry.”