Novonix and PowerCo Amend Supply Agreement
Key points
- Novonix and PowerCo amend supply agreement
- New agreement replaces offtake agreement from 2024
- Terms of new offtake agreement to be negotiated post-qualification
- Novonix achieves ISO 9001 certification, ISO 14001 expected in 2027
- Agreement reflects evolving EV and battery markets
Full summary
Novonix Limited, a leading battery materials company, has amended its supply framework agreement with PowerCo SE, a Volkswagen Group battery company. The new agreement replaces the offtake agreement from 2024 and will see terms negotiated once Novonix completes PowerCo's qualification process and obtains industrial certifications. Novonix has already achieved ISO 9001 certification, with ISO 14001 expected in 2027. The timing of the qualification process is dependent on market conditions. The original agreement provided for a minimum supply of 32,000 tonnes over five years beginning in 2027, intended for PowerCo's Ontario gigafactory.
Outlook
Novonix aims to complete qualification, demonstrate commercial-scale production of synthetic graphite, and build a competitive domestic supply base. The company is focused on meeting the evolving demands of the electric vehicle and battery markets.
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