Novonix came a step closer to reaching full production in Chattanooga as the company’s first customer, Panasonic Energy, provided positive feedback on its product.
A shipment Novonix sent in June to Panasonic Energy in Nevada met all but two of the customer’s specifications for the battery material, Novonix announced to investors Thursday.
The graphite came within 1% of the requirement for one specification and did not meet another requirement judged on a pass/fail basis, Novonix said in a press release. The company’s internal testing showed the material met all the requirements for the customer.
Novonix has said aims to make its riverside plant and headquarters in Chattanooga the first full-scale plant for battery-grade synthetic graphite in North America.
(READ MORE: Novonix decides not to buy property next to Chattanooga riverside plant)
“The testing and feedback from Novonix’s lead customer enables targeted actions to achieve final material confirmation and helps further the goal of development of a secure North American battery materials supply chain,” Novonix CEO Mike O’Kronley said in the release. “Through the work of our dedicated team working closely with our customers to validate a North American source of synthetic graphite, Novonix sets itself apart as an advanced provider of critical battery materials.”
Novonix graphite meets nearly all specifications for first customer
Novonix said it expects to begin mass production of synthetic graphite at its big blue plant, formerly home to Alstom, in the second half of 2027. The timeline is subject to Panasonic’s qualification process.
Panasonic could take six months to a year to complete its testing and analysis of the graphite, O’Kronley said in a previous interview. The black powder makes up the bulk of the negatively charged anode in lithium-ion batteries, storing electrons until they are discharged to power electric vehicles or the grid.
Novonix’s two signed customers, Panasonic Energy and Volkswagen’s PowerCo, make EV batteries. PowerCo is set to buy a minimum of 32,000 tons of synthetic graphite from Novonix between 2027 and 2031, according to the terms of their contract. Panasonic agreed to purchase at least 10,000 tons in a four-year term beginning after successful material qualification.
Novonix plans to produce 20,000 tons of graphite annually at the riverside plant at full production and 31,500 tons at a second plant planned in Chattanooga. The company has around 130 employees, almost all based in Chattanooga.
Novonix announced plans in 2025 for a $1 billion investment in a second plant to be located at Enterprise South Industrial Park near the Volkswagen plant. In August, the company decided against purchasing a factory next to its riverside plant as an alternative to Enterprise South.
Novonix dates back to a natural graphite mining company in Australia that bought a Canadian battery testing company and then opened a pilot plant in Chattanooga. The company no longer has operations in Australia, where it’s publicly traded on the Australian Securities Exchange, or in Canada after a series of sales.
Contact business reporter Daniel Dassow at ddassow@timesfreepress.com or 423-757-6318.