The state of Tennessee has demanded Novonix pay back a $3 million grant after the Chattanooga-based company fell short on a job creation requirement attached to the funding.
Novonix committed to creating 290 jobs over the term of the agreement and has created 85 jobs, or 29% of the original goal, according to the notice from the Tennessee Department of Economic and Community Development.
The company would have needed to meet 90% of the goal to be fully compliant, though the minimum requirement was 50% of the goal.
The state and Hamilton County entered the grant contract in 2021 to support the company as it moved into the big blue plant off Riverfront Parkway where Alstom once operated. Novonix has yet to turn the plant into a full-scale synthetic graphite factory to supply the North American market for batteries in electric vehicles and grid-level energy storage.
Novonix has 45 days to repay the state the full award, according to the written notice issued June 11 and obtained by the Chattanooga Times Free Press. Company officials say Novonix has 130 employees and almost all live in Chattanooga, though not all of the jobs were created since 2021 for the riverside plant project.