Novonix (ASX:NVX) and Lithium Energy (ASX:LEL) have mutually agreed to discontinue their planned spin-out of consolidated graphite assets in Queensland. The initial agreement, established in April 2024, involved Lithium Energy acquiring the Mt Dromedary Project in Queensland from Novonix, which has a market capitalisation of $286.77 million. The companies intended to consolidate their graphite assets through an initial public offering (IPO) by Axon Graphite, a Lithium Energy subsidiary.
However, both Novonix and Lithium Energy have decided against proceeding with the deal after consulting with the lead manager, citing unfavourable market conditions. Novonix is now reassessing strategies to advance the Mt Dromedary project and maximise its value. Consequently, Novonix’s nominees, Anthony Bellas and Christopher Burns, have resigned from their positions as directors of Axon Graphite.
Novonix is a battery technology company focused on the global lithium-ion battery industry. Lithium Energy is a diversified minerals company focused on lithium, graphite, gold, and copper, and aims to support global decarbonisation by discovering and developing mineral projects.
The global graphite market is projected to grow significantly, from US$8.32 billion in 2025 to US$13.35 billion by 2032, according to Fortune Business Insights. In 2024, natural graphite production was approximately 1.3 million tonnes, while synthetic graphite production exceeded 3 million tonnes.
