NOVONIX : Inaugural Sustainability Report

2023 Sustainability Report

About This Report

NOVONIX™ is pleased to present our 2023 Sustainability Report (the "Sustainability Report" or the "Report") as the inaugural publication of the environmental, social, and governance ("ESG") initiatives of NOVONIX Limited (together with its subsidiaries, "NOVONIX," the "Company," "our" or "we"). This Report articulates our commitment to operating a profitable, ethical, and sustainable business and highlights the efforts and initiatives we undertook in 2023 to establish a robust, adaptive ESG program and outlines future plans that align with our commitment to sustainability. As we develop our ESG program, we will continue to emphasize transparency regarding our performance, progress, and engagement with various stakeholders.

Scope of Report

This Report is intended to present our efforts, initiatives, and qualitative and quantitative Company information across a set of priority ESG topics for the fiscal year ended December 31, 2023 ("FY 2023" or "2023"), unless otherwise noted. The Report also identifies our aspirations and plans for further progress of our ESG program, which will be driven by our consideration of key stakeholders including shareholders, customers, employees, regulators, suppliers, and the communities in which we operate. The entities covered by this Report include NOVONIX Limited, a Queensland, Australia corporation ("NVX") whose ordinary shares are publicly traded on the Australian Stock Exchange (ASX: NVX) and whose American Depositary Receipts are traded on the Nasdaq Stock Market (NASDAQ: NVX) and its two wholly owned operating subsidiaries - NOVONIX Anode Materials, LLC, a Delaware limited liability company ("NAM"), and NOVONIX Battery Technology Solutions Inc., a Canadian corporation ("BTS"). These entities, together with other subsidiaries of the Company, are part of the consolidated group that has audited consolidated financial statements included in its public filings with the Australian Stock Exchange ("ASX") and the U.S. Securities and Exchange Commission ("SEC"). Other subsidiaries not identified by name as part of this Report are intermediate holding companies or other non-operating entities. A list of all our subsidiaries may be found at Exhibit 8 to the Company's Annual Report on Form 20-F for the fiscal year ended December 31, 2023 (the "2023 Annual Report"), filed with the SEC on February 28, 2024.

Methodologies and Frameworks

In 2023, we commenced our ESG program by establishing a committee comprised of internal subject matter experts from across the Company (the "ESG Committee"). To guide discussions around relevant sustainability themes, we engaged a third-party ESG advisor (the "Advisor"). With the support of the third-party advisory, we performed a focused materiality assessment to identify ESG topics that demanded the Company's initial attention. That assessment and the efforts that followed, including the preparation of this Report, considered a range of reporting protocols and frameworks considered relevant to our business, such as the Sustainability Accounting and Standards Board ("SASB"), Global Reporting Initiative ("GRI"), and the UN Development Goals. The ESG Committee looked to a range of protocols and frameworks for the following reasons:

1. our primary focus was to lay the foundation for an ESG program that would begin with a focus on key ESG topics and then develop and expand in 2023 and beyond;
2. we believe it was premature to evaluate and decide on a single or limited number of reporting standards that could be applied across businesses;
3. our two operating subsidiaries - NAM and BTS - while both broadly engaged in the battery industry, have key differentiators between their businesses that required consideration of a broader range of reporting standards that properly accounted for those differences; and
4. our NAM business has not yet achieved full-scale operations with plans to begin production in late 2024, which meant many of its business activities that relate to key ESG topics were still under development or not yet generating significant or reportable data.

As outlined below in "Disclosure Index," we prepared this Report with the above in mind and a primary, but not exclusive, focus on applicable "GRI" and "SASB" standards.

Reporting Period, Frequency, and Contact Point

This Report covers the period of January 1, 2023, to December 31, 2023, which aligns with the reporting period for our financial reporting, with references when necessary to prior period initiatives, activities, and data.

We intend to publish our Report annually.

You may contact our Investor Relations Department, at [e-mail] for further information on this Report.

Publication Date

The publication date of this Report is March 8, 2024.

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Table of Contents

About This Report	02
CEO Letter	05
About NOVONIX	08
Materiality Assessment	14
Governance	19
Governance and Oversight Structure	21
Board Composition and Skills	23
Executive Management	26
ESG Committee	26
ESG-Aligned Executive Compensation	26
Our Governance Initiatives	27
Business Ethics & Policies	27
Environmental	31
Synthetic Graphite and its Footprint	33
Advanced Battery Technology	36
Our Environmental Initiatives	37
Energy Management	38
Greenhouse Gas Emissions	39
Air Quality	43
Waste and Hazardous Waste Management	44
Environmental Impact in the Supply Chain	45
Social	47
Our Social Initiatives	48
Workforce Health and Safety	48
Employee Engagement	49
Product Safety	51
Cybersecurity	54
Diversity, Equity, and Inclusion	54
Corporate Social Responsibility	57
Disclosure Index	59
Disclaimers	60

Cautionary Note Regarding

Forward-Looking Statements

This Sustainability Report contains "forward-looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995, about the Company and the industry in which it operates. Forward-looking statements can generally be identified by use of words such as "anticipate," "believe," "contemplate," "continue," "could," "estimate," "expect," "intend," "may," "plan," "potential," "predict," "project," "should," "target," "will," or "would," or the negative of these terms and other similar expressions. Examples of forward-looking statements in this Report include, among others, statements we make regarding the future growth of the battery industry and demand for electric vehicles and energy storage systems, our anode materials production targets and timing of commercial production at our Riverside facility, the performance of our proprietary Generation 3 continuous induction furnaces and their ability to meet customer specifications on a timely and cost-effective basis and achieve the anticipated environmental benefits, the expected benefits and commercial success of our cathode synthesis technology, our ability to successfully deploy advanced data capabilities, including through the use of artificial intelligence, our cost, throughput, and sustainability targets, our ability to achieve profitability and sales price targets, the efforts and potential benefits of our working with the U.S. Department of Energy, the timing of our future site expansions, and our plans for the continued development of our ESG program and our ability to achieve our ESG initiatives. We have based these forward-looking statements on our current expectations and projections about future events and trends that we believe may affect our financial condition, results of operations, business strategy, and financial needs. Such forward-looking statements involve assumptions and are subject to known and unknown risks, uncertainties, and other factors that may cause our actual results, performance, or achievements to be materially different from any future results, performance, or achievements expressed or implied by the forward-looking statements. Factors that could affect our business and results are included in our SEC filings, including the Company's most recent annual report on Form 20-F. Copies of these filings may be obtained by visiting our website at https://ir.novonixgroup.com/financial-information/sec-filings or the SEC's website at www.sec.gov. New risk factors may emerge from time to time, and it is not possible for our management to predict all risk factors, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in, or implied by, any forward-looking statements. You should not rely on forward-looking statements as predictions of future events. We have based the forward-looking statements contained in this Report primarily on our current expectations and projections about future events and trends that we believe may affect our business, financial condition, and operating results. We undertake no obligation to update any forward-looking statements made in this Report to reflect events or circumstances after the date of this Report or to reflect new information or the occurrence of unanticipated events, except as required by law. We may not actually achieve the plans, intentions, or expectations disclosed in our forward-looking statements, and you should not place undue reliance on our forward-looking statements. Our forward-looking statements do not reflect the potential impact of any future acquisitions, mergers, dispositions, joint ventures, or investments. In addition, statements that "we believe" and similar statements reflect our beliefs and opinions on the relevant subject. These statements are based on information available to us as of the date of this Report. While we believe that information provides a reasonable basis for these statements, that information may be limited or incomplete. Our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of, all relevant information. These statements are inherently uncertain, and investors are cautioned not to unduly rely on these statements.

CHRIS BURNS

CO-FOUNDER & CEO, NOVONIX

"NOVONIX is on a journey to provide revolutionary solutions to the battery industry to advance the adoption of clean energy. As a battery materials and technology company, we have a critical role to play in how our world's energy is used. Our products, services, and experience enable our customers to achieve their goals of making more efficient, longer life lithium-ion batteries for the electric vehicle and energy storage market, all towards a more sustainable future."

CEO Letter

As a leading battery materials and technology company, NOVONIX provides advanced, high-performance materials, equipment, and services for the global lithium-ion battery industry. Our vision is to provide revolutionary clean energy solutions to the battery industry. We are committed to our mission to develop innovative, sustainable technologies and high-performance materials to service the electric vehicle ("EV") and energy storage systems ("ESS") industries.

NOVONIX has focused on developing technology to provide higher-performance battery materials through simpler, cleaner processes. We have made tremendous strides over the last decade and are excited by the opportunities ahead of us as we deploy our technologies and processes to benefit the battery industry and aid in supporting a cleaner planet.

As we see prolific adoption of EVs and ESS, we know that environmentally conscious battery technologies will be key to securing a sustainable future. Our technologies for developing and proving long life, high- performance anode and cathode materials will help fuel the exponential growth of these markets over the next decade and beyond. This growth has significant tailwinds from government emissions targets, corporate EV commitments from virtually every automobile manufacturer, consumer environmentalism, and the drive to electrify our economy.

We are proud to publish this inaugural Sustainability Report which is the result of the efforts of our ESG Committee, and the goal of which is to document, report, and build transparency in the Company's ESG efforts.

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Anode Materials Business

At NOVONIX we have been creating the building blocks for a localized battery supply chain for over a decade. Our NAM division is a leader in the development and production of battery-grade synthetic graphite materials in North America. Building a supply chain from the ground up is no easy task and requires significant investment, experience, and effort. One of the most crucial elements is validating new technologies quickly to reach and grow production and sales. The work we are doing at NAM is a key part of that process. Our process technology has the opportunity to reduce our energy usage and emissions in the production of battery-grade graphite and extend the useful cycle life of batteries compared with traditional technology.

All-Dry,Zero-Waste Cathode Synthesis Technology

Through our BTS division, we have developed technology and made investments in nickel-based cathode material synthesis. In 2022, NOVONIX kicked off a pilot program demonstrating the scalability of our proprietary all-dry,zero-waste cathode synthesis technology. The technology demonstrated through this pilot program helps reduce the cost and environmental impact of producing high energy density (nickel-based and cobalt free) cathode materials.

NOVONIX's BTS division was started in 2013 because of the impending need for higher performance batteries to support electrification. Our team understood that the rise of EVs and ESS - and the materials and technology that would be needed to support them - could potentially reshape global markets and accelerate a cleaner future. Ten years into this journey, we see more opportunity than ever before to support electrification with a focus on localization of key battery materials. We look forward to keeping our stakeholders informed as to our progress by continuing to enhance our reporting efforts and keeping you updated as we progress towards our corporate and sustainability goals.

Kind regards,

Chris Burns, PhD

CEO

NOVONIX Limited

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NOVONIX's Riverside facility alongside the Tennessee River in Chattanooga, TN.

About

OUR

VISION & MISSION STATEMENT

Our vision is to provide revolutionary clean energy solutions to the battery industry.

Our mission is to develop innovative, sustainable technologies and high-performance materials to service the electric vehicle and energy storage industries.

OUR

CORE VALUES

Curiosity

We are agile. We are charting new territory, which requires comfort with ambiguity and the ability to adapt.

We are creative. We encourage new ideas, approaches, and insights. We are inquisitive and we challenge assumptions. We are open-minded and willing to admit when we are wrong.

We are resilient problem solvers. We are self-starterswho take on tough challenges.

Collaboration

We are in this together.

We value diversity of thought. We treat each other with professional courtesy and respect.

We speak up, look at the issue from multiple angles, debate, and then get behind the decision as one. We offer expertise and suggestions, always putting the interest of the team over our own personal preferences.

We operate in a fast-paced environment and hold each other accountable to a high bar of performance.

We demonstrate trust through honesty and transparency.

Commitment

We put people first.

We don't compromise on safety.

We are committed to the well-being of our employees and the communities we operate in.

We have a service mindset, always looking to create value for our team, customers, and partners.

We take pride in what we do and are excited about finding solutions for a more sustainable future.

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At NOVONIX, we know that our battery materials and industry-leading,low-emissions technology and processes are key to enabling a cleaner, more sustainable, electrified future. We also recognize the need to reduce the impact of our operations and products on the environment. Throughout our offices and facilities, we've made a commitment to sustainability. We recognize that the health, safety, and wellbeing of our employees and the communities in which we operate are essential to our long-term growth and success.

The Company is committed to reducing greenhouse gas ("GHG") emissions throughout our operations. Many leading battery manufacturers and companies across the electrification sector have announced their goal to achieve net-zero emission by certain target dates, with these initiatives ultimately requiring support from their suppliers. NOVONIX believes its product will allow cell manufacturers to achieve market differentiation by producing high-performance battery materials with a lower GHG impact.

The battery industry has been growing and evolving at a rapid pace with the demand for electrification in response to global decarbonization efforts. Both EVs and grid-scale ESS have become central to this key theme and have witnessed significant demand growth. As society looks more broadly towards reducing our reliance on fossil fuels through the deployment of renewable power generation (i.e., wind and solar), the need for grid-scale ESS continues to grow as the intermittent power generation from renewable sources requires energy storage to support reliable power delivery to customers. With the performance and adoption of EVs and ESS progressing rapidly, the need for advanced materials and technologies that support long-life,high-performance battery applications, along with the need to localize the production of those materials, has become more pronounced.

While battery cell manufacturing to support the automotive transition to EVs has gained momentum in the United States, the North American battery material supply chain is lagging. NOVONIX anticipated the shortage of materials early on and in 2017 founded the NAM division based in Chattanooga, Tennessee. Today, the Company is a leading supplier of high-performing materials and technology with plans to scale significant volumes of synthetic graphite in North America to help meet the demand for this critical material.

Our battery testing equipment and battery research and development services are being used by our partners and customers to support the development of better cell technology for their products across vehicle, energy storage systems, and other applications.

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Anode Materials

NAM is a U.S.-based supplier of battery-

grade synthetic graphite focused on large scale and sustainable production to advance the North American battery supply chain. We are leading the transition to a fully integrated, domestic battery materials supply chain to facilitate a sustainable future. Utilizing proprietary synthetic graphite process technology, R&D capabilities, and strategic partnerships, NOVONIX is positioned to accelerate the transition to a cleaner energy future.

Synthetic graphite is the predominant anode material used today in lithium-ion batteries and is currently almost exclusively sourced from China. There are legitimate concerns surrounding labor and environmental standards in the sourcing of these materials. As part of its efforts to localize the battery supply chain, the U.S. Department of Energy has identified graphite for use in lithium- ion batteries as a critical material based on its

criticality to global clean energy technology supply chains.

NOVONIX is currently scaling commercial production of synthetic graphite to meet the growing demand. Our Riverside facility, located in Chattanooga, Tennessee will produce up to to 20,000 tonnes per annum (tpa) of synthetic graphite when fully operational, and the Company is targeting a total production capacity of 150,000 tpa in North America.

We utilize new graphitization furnace technology developed in collaboration with Harper International Corporation ("Harper"). We have installed proprietary Generation 3 Continuous Induction Graphitization Furnaces ("Generation 3 Furnaces") at our Riverside facility and are continuing the commissioning of those systems to meet our production targets. Recent results in 2023 have shown ongoing production campaigns

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