NOVONIX has signed a binding offtake agreement with Stellantis to provide high-performance synthetic graphite for its electric vehicle battery manufacturing partners in North America.
The deal commits NOVONIX to supply a minimum of 86,250 tonnes of the material, with the potential to increase to 115,000 tonnes over the next six years, beginning in 2026, the company said in a news release.
Dr Chris Burns, CEO of NOVONIX, expressed enthusiasm for the partnership, stating, “We are excited to have Stellantis’ commitment, now as our largest customer, to support their North American EV growth plans. This contract allocates the remainder of our available volumes at our Riverside facility and a portion of volumes to be produced at our planned greenfield facility.”
“Offtake agreements with high-quality partners such as Stellantis solidify NOVONIX’s position as a leader in onshoring the supply chain of synthetic graphite and accelerating the adoption of clean energy.”
The supply will be sourced from NOVONIX’s Riverside facility, which is poised to be the first large-scale production site for high-performance synthetic graphite in North America.
The facility is slated to begin commercial production in 2025, with plans to ramp up output to 20,000 tonnes per annum (tpa) to meet existing customer commitments.
The facility has also received substantial support from the US Department of Energy (DOE), including a USD 100 million grant and a USD 103 million investment tax credit for its development.
In addition to the Riverside site, NOVONIX is progressing plans for a new production facility in the southeastern United States.
This site is expected to have an initial capacity of 30,000 tpa, with plans to scale up to 75,000 tpa.
The company is in talks with the DOE Loan Program Office for financing through its Advanced Technology Vehicles Manufacturing Program.
The agreement with Stellantis underscores NOVONIX’s role in helping to meet the increasing demand for critical battery materials in the EV sector. Stellantis, which plans to invest over €50 billion in electrification over the next decade, aims to transition to 100% battery-electric passenger cars.
As part of this strategy, the automaker is securing approximately 400 GWh of battery capacity, supported by plants in North America and Europe.
The terms of the agreement include a price based on a market-based formula, with the commercial supply of synthetic graphite expected to begin on 1 January 2026.
However, the start of supply is contingent on NOVONIX achieving specific production milestones and compliance criteria. If these conditions are not met, Stellantis has the option to terminate the agreement.
