Battery materials and technology company NOVONIX has signed a joint research and development agreement (JDA) with global manufacturer LG Energy Solution for the development of artificial graphite anode material for lithium-ion batteries.
In a separate deal, LGES is set to buy USD 30 million (AUD 45 million) worth of unsecured convertible notes to be issued by NOVONIX, which will allow the battery maker to own shares in the ASX-listed partner.
Upon successful completion of development work under the JDA, both companies 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.
The partnership will aid LGES expand its battery manufacturers and strengthen its presence in North America in compliance with the US Inflation Reduction Act that gives subsidies for EVs made with components sourced from the region.
In particular, to solidify its leadership position in the North American market, LGES said it continues to aim to accelerate the localisation of production and assembly of battery components, including electrodes, cells and modules.
“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,” explained Dongsoo Kim, senior vice president of Procurement Centre at LG Energy Solution.
Kim said that as the company collaborates with the Australian manufacturer, NOVONIX will continue its commitment to enhancing product competitiveness and operational excellence, delivering quality products.
Meanwhile, Chris Burns, CEO of NOVONIX, expressed his excitement to formalise 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,” noted Burns.
Since December 2022, LGES and NOVONIX have been in informal discussions to seek this funding and jointly develop an artificial graphite anode material that meets LGES specifications.
The material will be developed at NOVONIX’s existing facilities in Tennessee.
After that, mass production is expected to begin in 2026 from the new facility proposed by NOVONIX in the United States.
