LG Energy Solution, NOVONIX to jointly develop artificial graphite anode material
Battery manufacturer LG Energy Solution and battery materials firm NOVONIX have announced the signing of an agreement for the joint research and development of artificial graphite anode material for lithium-ion batteries.
Further, NOVONIX has agreed to issue an aggregate principal amount of US $30 million unsecured convertible notes to LGES, as per a separate agreement.
Upon successful completion of certain development work under the JDA, LGES and NOVONIX will enter into a separate purchase agreement pursuant to which LGES will have the option to purchase up to 50,000 tons of artificial graphite anode material over a 10-year period from the start of mass production.
"Our partnership with NOVONIX once again demonstrates LG Energy Solution's determination to establish a solid battery supply chain in the U.S., complementing our local manufacturing network to meet our customer's needs for lRA-compliant batteries," said Dongsoo Kim, Senior Vice President of Procurement Center at LG Energy Solution.
"As we work with NOVONIX in developing a new source of artificial graphite anode material, we will stay committed to strengthening our product competitiveness and operation excellence, delivering the world-best quality products both in scale and with speed", he added.
With two stand-alone and five joint venture plants currently operating or being constructed in the U.S., LGES plans to maximize the benefits from the Inflation Reduction Act (IRA) by expanding local battery production, as well as establishing a local supply chain for battery components.
In order to solidify its market leadership in North America, the battery company further aims to expedite the localization of manufacturing and assembly of battery components, including electrodes, cells, and modules.
NOVONIX, on the other hand, claims to provide a robust, sustainable supply chain option for high performance artificial graphite in the region. With current operating sites in Chattanooga, TN, the company will produce IRA-compliant materials for its customers in the United States.
It is to be noted that the company was selected for a US $150 million grant by the Department of Energy to support its expansion.
Chris Burns, CEO of NOVONIX, said, "We are excited to formalize our work with LG Energy Solution and establish the path for NOVONIX to become a supplier for LGES of artificial graphite anode material in the United States. This agreement demonstrates our leading position to establish a supply chain for high-performance artificial graphite for the battery industry in North America."
As per the latest agreements, the battery material will be developed at NOVONIX's current Tennessee-based facilities. The mass production is expected to start in 2026 from the company's proposed United States-based greenfield facility.