NOVONIX Limited announced that its NOVONIX Anode Materials division was selected to enter negotiations to receive USD 150 million in grant funding from the U.S. Department of Energy (DOE) to expand its domestic production of high-performance, synthetic graphite anode materials. Negotiations will cover final conditions including operational milestones and timing and schedule of payment of grant funds. This is the first set of projects funded by President Biden's Bipartisan Infrastructure Law to expand domestic manufacturing of batteries for electric vehicles and the electrical grid, with a focus on domestic processing of materials and components currently imported from other countries. Responsible and sustainable domestic sourcing and processing of the critical materials used to make lithium-ion batteries will strengthen American supply chains, accelerate battery production to meet increased demand, and secure the nation's economic competitiveness, energy independence, and national security. The funding announced by the Department of Energy is the first phase of over $7 billion in total provided by the President's Bipartisan Infrastructure Law for the battery supply chain and supports NOVONIX's execution of its strategic growth plan for synthetic graphite anode materials produced in the U.S. Specifically, the grant funds will be dedicated to the construction of a 30,000 tonnes per annum (tpa) U.S. manufacturing facility, including site selection, plant layout, and engineering design with capability for additional expansion. DOE's Office of Manufacturing and Energy Supply Chains (MESC) is responsible for strengthening and securing manufacturing and energy supply chains needed to modernize the nation's energy infrastructure and support a clean and equitable energy transition. MESC will manage the portfolio of projects with support from DOE'sOffice of Energy
Efficiency and Renewable Energy's Vehicle Technologies Office. The grant is being funded under Area of Interest Two of the recently announced Battery Materials Processing and Battery Manufacturing Funding Opportunity Announcement (FOA), with the main objective of creating battery-grade graphite anode manufacturing capacity in the United States. The Project funded under this award will reduce U.S. reliance on importing this key battery material. China currently dominates both the synthetic and natural graphite markets with 98% and 77% market share, respectively; the rest coming from Japan and Korea. Through its proprietary process technology, clean power sources, and strategic partnerships, NOVONIX remains committed to enabling an electrified future while addressing the climate crisis. The Company is on track for reaching annual production capacity of 10,000 tpa of synthetic graphite in 2023 at its existing Riverside facility in Chattanooga,Tennessee, with further plans to expand annual production capacity to 40,000 tpa in 2025 and 150,000 tpa in 2030.