Australian synthetic graphite maker Novonix Ltd has received a conditional US$755 million loan from the US Department of Energy (DOE) to build a manufacturing plant in Chattanooga, Tennessee, US. The plant is expected to reach full capacity by end of 2028.
The new plant will annually produce about 31,500 tonnes of synthetic graphite, which is key to manufacturing lithium-ion batteries in electric vehicles (EVs) and smartphones, Novonix said in a statement. The material will primarily be destined for EV makers in North America. Battery-grade graphite can either be mined or produced synthetically.
Funds are contingent on a binding loan agreement with the Department of Energy and due diligence, according to the statement. The department said in a separate statement that the conditional commitment isn’t final. That means there’s a possibility it could be reversed by the Trump Administration if not completed by the Jan 20 inauguration.
China currently holds a 95% market share for battery-grade graphite, according to Novonix. The nation has recently moved to control exports of the battery component, a move that alarmed the West.
“Recent announcements from China to further scrutinise the export of battery-grade graphite to the US highlight the importance of domestic production of high-performance, battery-grade synthetic graphite,” Novonix CEO Chris Burns said in the statement.
The company already has binding offtake agreements to supply Panasonic Energy Ltd, Stellantis NV and PowerCo SE.