Novonix secures deal to supply synthetic graphite to Volkswagen-backed PowerCo

Australian battery materials producer Novonix said Monday it has entered into a binding agreement to sell synthetic graphite to PowerCo, a battery company promoted by German automaker Volkswagen. Under the deal, Novonix will guarantee 32,000 metric tons, a high performance synthetic graphite starting in 2027.

VW’s International Battery Factory’ s PowerCo wants to secure the essential materials it needs to ramp up production to meet the automaker’s new electric car ambitions.

Commercial production is expected to start at Novonix’s Riverside facility in Chattanooga, Tennessee, in 2025 and produce 20,000 metric tons per year. Beyond the Riverside plant, Novonix plans to build a second production site in the southeastern United States. The new plant is expected to produce up to 75,000 metric tons annually at first, with a goal to reach that amount in the future to meet demand.

Novonix is the latest in a series of moves by the company to secure long term agreements with major players in the EV and battery industry through partnership with PowerCo. The Brisbane based company earlier this year inked a supply deal with Panasonic Energy to supply synthetic graphite for its North American operations.

This is because synthetic graphite is a key material for EV battery anodes and its growth is expected as automakers speed up that shift to electrification. Novonix’s advanced production capabilities and strategic U.S presence make it well placed to fill this demand and help reduce reliance on international supply chains.

Novonix said in a statement 'this agreement highlights the growing significance of securing sustainable and high quality materials for the EV Battery supply chain.'

The deal is part of Volkswagen’s wider move to turn to local battery production and sourcing, which is critical for the automaker to make good on its EV targets and meet government incentives that favor domestic manufacture in the U.S.

With its expanding footprint and growing list of high-profile partnerships, Novonix is cementing its role as a leader in the synthetic graphite market, supporting the global transition to clean energy and electric mobility.