Synthetic graphite maker Novonix has agreed to supply a minimum of 32,000t of synthetic graphite to Volkswagen subsidiary and battery maker PowerCo under a five-year offtake agreement, starting in 2027.
The offtake agreement follows a deal agreed in May for developing and testing of Novonix's material.
Volkswagen founded PowerCo in 2022 and the firm has factories in Ontario, Salzgitter and Valencia under construction, with a planned capacity of up to 200 GWh/yr. In September, the firm scaled back construction plans to just one of two planned production lines at the Salzgitter plant on slowing electric vehicle (EV) demand.
Novonix is currently building a manufacturing facility in Tennessee with planned output of up to 20,000 t/yr of synthetic graphite.
It plans to expand capacity at the plant to 40,000 t/yr by 2025 and 150,000 t/yr by 2030 after being awarded a $100mn grant from the US Department of Energy and a $103mn tax credit for the facility.
The firm in February signed an offtake agreement with Japanese battery maker Panasonic for 10,000 t/yr of synthetic graphite over four years over 2025-28.
