NOVONIX Advances Synthetic Graphite Supply Amid Strategic Developments and Battery Tech Advancements

NOVONIX Ltd has made significant strides in the first half of 2025, supplying advanced synthetic graphite samples to 13 customers and progressing equipment installation for a 3,000 tpa capacity. The company received favorable preliminary rulings from the U.S. Department of Commerce on tariffs against Chinese graphite imports and is expanding its production capabilities. NOVONIX also appointed a new CEO and secured a funding agreement for up to $100 million, enhancing its financial stability and growth prospects.

Chattanooga, TN (USA), July 23, 2025 – NOVONIX Limited (NASDAQ: NVX, ASX: NVX), a leading battery materials and technology company, has announced the entry into a definitive Funding Agreement with Yorkville Advisors Global, LP (Yorkville) to provide up to $95 million in funding. This capital will be used to support the continued build-out of the company's Riverside facility in Chattanooga, Tennessee.

Under the terms of the multi-tranche Funding Agreement, NOVONIX will issue up to $100 million of unsecured convertible debentures to Yorkville. The first two tranches of the agreement total $57 million, with the first tranche of $24.5 million already issued and fully drawn down. The second tranche of $35.5 million is subject to shareholder approval at an Extraordinary General Meeting (EGM) scheduled for September 9, 2025. An additional tranche of up to $40 million is also subject to shareholder approval at the same EGM, with funding drawdowns to be mutually agreed upon by NOVONIX and Yorkville.

The proceeds from these convertible notes will provide additional capital for the continued build-out of the Riverside facility, which is poised to become the first large-scale production site dedicated to high-performance synthetic graphite for the battery, defense, and industrial sectors in North America. NOVONIX expects to begin shipping commercial-grade synthetic graphite from Riverside later this year, with mass production starting next year for its lead customer, Panasonic.

Mike O’Kronley, CEO of NOVONIX, commented on the agreement, stating, “NOVONIX will begin shipping commercial-grade synthetic graphite from Riverside later this year with mass production starting next year for our lead customer, Panasonic. The start of commercial production will mark a critical milestone for the Company as we continue to establish and build a domestic supply chain for synthetic graphite in North America.”

The funding agreement is part of NOVONIX’s broader strategy to expand its production capabilities and strengthen American manufacturing. The company previously announced plans to build a second synthetic graphite manufacturing plant in Chattanooga, known as the Enterprise South location. With the initial capacity at Enterprise South and its existing Riverside facility scaling up to 20,000 tonnes per annum (tpa), NOVONIX will have a total production capacity of over 50,000 tpa in Chattanooga.

This announcement has been authorized for release by Ron Edmonds, Chairman of NOVONIX. For more information, see the ASX announcement at [1].

References:
[1] https://www.asx.com.au/markets/trade-our-cash-market/announcements.nvx
[2] https://www.novonixgroup.com/novonix-announces-entry-into-funding-agreement-for-up-to-us100-million-of-convertible-debentures/