NOVONIX Offered Conditional Commitment for US$754 Million Loan from the U.S. Department of Energy for New Synthetic Graphite Manufacturing Plant in Tennessee

Core Viewpoint - NOVONIX Limited has received a conditional commitment from the U.S. Department of Energy for a direct loan of up to US$754.8 million to finance a new facility in Chattanooga, Tennessee, aimed at manufacturing synthetic graphite for electric vehicle batteries [1][2]. Company Overview - NOVONIX is a leading battery materials and technology company focused on revolutionizing the lithium-ion battery industry with innovative and sustainable technologies [12]. Loan Details - The loan consists of US$692 million in principal and US$62.8 million in capitalized interest, structured in two tranches based on the phased completion of the facility [6][9]. - The first tranche will support the infrastructure and initial production capacity of 21,000 tonnes per annum (tpa), while the second tranche will support an additional 10,500 tpa [7]. Production Capacity and Job Creation - The new facility is expected to produce approximately 31,500 tpa of synthetic graphite, supporting the production of lithium-ion batteries for around 325,000 electric vehicles annually [2]. - The facility is anticipated to create 450 full-time operational jobs and 500 construction jobs [2]. Strategic Importance - The establishment of this facility is critical for localizing the supply chain of battery-grade graphite, as China currently holds over 95% of the market share [2][3]. - NOVONIX has signed binding offtake agreements with major partners such as Panasonic Energy, Stellantis, and PowerCo, reinforcing its position in the North American synthetic graphite supply chain [3]. Future Expansion Plans - The company aims to expand the production capacity of the Chattanooga facility to a target of 75,000 tpa, contingent on customer demand and additional financing [3]. Environmental and Regulatory Considerations - The loan is subject to an environmental review and the fulfillment of various technical, commercial, legal, and financial conditions before final approval [10].