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Novonix (NVX.US) rose over 24% after reaching a graphite sale agreement with the public

Market IntelMonday, Nov 25, 2024 10:10 am ET

1min read

Novonix (NVX.US) shares rose on Monday, up more than 24% at the time of writing to US$2.4. The news comes as the battery materials producer has entered into a binding agreement with PowerCo, the battery company of German carmaker Volkswagen, to sell synthetic graphite. Under the agreement, Novonix will guarantee the supply of 32,000 tons of high-performance synthetic graphite starting in 2027.

PowerCo, the battery unit of Volkswagen's international factory, is looking to secure critical materials for its production expansion to meet the automaker's new electric vehicle plans. Novonix's Riverside plant in Chattanooga, Tennessee is expected to start production in 2025, with an annual output of 20,000 metric tons. In addition to the Riverside plant, Novonix plans to build a second production base in the southeastern United States. The new plant is expected to initially produce 75,000 metric tons per year, with the goal of reaching this target in the future to meet demand.

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