NOVONIX Secures Up to $100M Funding for Synthetic Graphite Expansion

NOVONIX Limited, a leading battery materials and technology company, has entered into a funding agreement with Yorkville Advisors Global, LP for up to $100 million of convertible debentures. The proceeds will be used for the continued build-out of NOVONIX's Riverside facility in Chattanooga, Tennessee, to meet increasing demand for high-performance synthetic graphite. The company aims to establish a domestic supply chain for synthetic graphite in North America and create high-quality jobs.

NOVONIX Limited (NASDAQ: NVX), a leading battery materials and technology company, has entered into a definitive funding agreement with Yorkville Advisors Global, LP for up to $100 million in convertible debentures. The proceeds will be used to support the continued build-out of NOVONIX's Riverside facility in Chattanooga, Tennessee, to meet increasing demand for high-performance synthetic graphite [1].

The funding agreement, announced on July 23, 2025, includes three tranches: a $24.5 million first tranche, a $35.5 million second tranche subject to shareholder approval, and a potential additional $40 million tranche by mutual agreement. The facility is expected to begin shipping commercial-grade synthetic graphite later this year, with mass production starting in 2026 for lead customer Panasonic [1].

The Riverside facility will be North America's first large-scale synthetic graphite production site, with a capacity of 20,000 tonnes per annum (tpa). Combined with the planned Enterprise South location, NOVONIX's total production capacity will exceed 50,000 tpa in Chattanooga [1].

The funding mechanism through convertible debentures allows NOVONIX to secure necessary capital while potentially minimizing immediate dilution. However, shareholders will need to approve the larger portions of this financing at an upcoming extraordinary general meeting (EGM) scheduled for September 2025 [1].

This capital raise directly supports NOVONIX's strategy to establish a domestic supply chain for critical battery materials in North America, addressing strategic manufacturing priorities while creating jobs in Tennessee [1].

References:
[1] https://www.stocktitan.net/news/NVX/novonix-announces-entry-into-funding-agreement-for-up-to-us-xuvm0hfojq2s.html