NOVONIX hits significant milestones, outlines path to profitability in US anode material manufacturing

Two Generation 3 Furnace systems and milling equipment installed in NOVONIX’s Riverside facility. Image credit: Novonix

Battery materials and technology company NOVONIX Limited announced a significant update regarding its proprietary Generation 3 Furnaces located at the Riverside facility in Tennessee. 

The ASX-listed company said it achieved remarkable milestones with these continuous induction Furnaces, marking a pivotal moment in its mission to revolutionize battery material production.

Previously, NOVONIX reported that its high-performance battery-grade synthetic graphite had met the prescribed specification targets from these Furnaces. 

Subsequently, the company initiated manufacturing campaigns, primarily aimed at gathering operational data and economic insights into this groundbreaking technology. 

In the most recent campaign, the material produced not only met all specifications but also successfully achieved the equipment design throughput targets.

This achievement underscores the immense potential of NOVONIX’s continuous induction Furnace technology, as it can meet production targets while maintaining competitive costs and high energy efficiency with a near-zero-emission process. 

The company is now taking strides to enhance the engineering for both the process equipment and the Riverside facility, setting an increased production target of up to 20,000 tonnes per annum (tpa), compared to the initial goal of 10,000 tpa.

The upgraded throughput capacity aligns with NOVONIX’s commitment to supporting partners like KORE Power and other prospective customers. 

Discussions with these potential clients are ongoing, focusing on product qualification, production schedules, and potential supply agreements. 

The company anticipates completing the engineering work necessary for the full facility redesign by the first quarter of 2024. 

This redesign will accommodate additional mass production equipment, setting the stage for commercial production for KORE Power in late 2024.

Dr Chris Burns, CEO of NOVONIX, commented on the significant milestones, saying, “The results of our ongoing production campaigns clearly demonstrate NOVONIX’s path to profitable production through our first-in-the-world graphitization furnace technology.”

He added, “Over several production campaigns, the Furnaces delivered in-spec product at a mass scale reaching our target design throughputs. The potential to expand the production output of Riverside to up to 20,000 tonnes per annum is an important opportunity for the Company’s near-term growth plans with significant demand and strong progress in customer development.”

One of NOVONIX’s synthetic graphite grades, GX-23, produced during these campaigns, underwent comprehensive analysis and met all target physical and electrochemical specifications. 

This achievement validates the consistency and reliability of the Company’s Generation 3 Furnaces in producing high-quality battery materials.

Furthermore, NOVONIX is strategically focusing on expanding its Riverside facility to maximise output and economic returns. 

The company is also actively collaborating with the US Department of Energy to explore potential funding support for current and future expansions, leveraging grant and loan programs. 

These accomplishments are expected to contribute to reduced capital costs for future facilities compared to initial estimates. 

The timing of future site expansions, including those proposed for North America and Saudi Arabia, will be contingent on finalising Riverside’s engineering (expected in Q1 2024), securing customer off-takes, and obtaining necessary capital.

NOVONIX’s commitment to innovation and sustainability in battery material production positions it as a key player in driving the future of battery technology.