NOVONIX Limited, a battery materials and technology company, has received a conditional commitment from the US Department of Energy (DOE) for a direct loan of up to $754.8 million. The funding, provided through the DOE’s Loan Programs Office (LPO) under the Advanced Technology Vehicles Manufacturing (ATVM) Loan Program, would support the construction of a new synthetic graphite production facility in Chattanooga, Tennessee.
The proposed facility is designed to produce approximately 31,500 tonnes per annum (tpa) of synthetic graphite, primarily for use in electric vehicle (EV) batteries, meeting the growing demand for critical battery materials. This production could supply lithium-ion batteries for approximately 325,000 EVs annually at full capacity.
Construction of the facility is expected to create 450 full-time operational jobs and 500 construction jobs, with full production targeted by the end of 2028.
NOVONIX’s synthetic graphite facility would contribute to efforts to localize the battery materials supply chain in North America, particularly in light of global trade dynamics and the need for domestic alternatives. The facility builds on NOVONIX’s ongoing efforts at its Riverside site in Chattanooga, which is expected to begin commercial production of synthetic graphite in 2025 with an initial output of 20,000 tpa.
The conditional loan is structured in two phases to support incremental production capacity and requires NOVONIX to meet several conditions, including environmental reviews, due diligence, and additional approvals before the loan is finalized. The funding represents a step forward in strengthening US-based manufacturing of high-performance synthetic graphite, a key material in EV battery production.
NOVONIX has already signed binding offtake agreements with Panasonic Energy, Stellantis, and PowerCo to supply synthetic graphite, reflecting growing market demand for localized battery materials. The Chattanooga facility’s first phase will enable NOVONIX to address current commitments and support the broader transition to electrified transportation.
The DOE loan, combined with previous funding initiatives, underscores the importance of building a resilient and sustainable supply chain for EV battery materials in the US.
Filed Under: Batteries, Technology News