NOVONIX Limited (ASX: NVX), a leading battery materials and technology company striving to reduce supply chain risk and support U.S. energy independence, announced the termination of its offtake agreement with FCA US LLC, a subsidiary of Stellantis NV, effective immediately. The termination follows an inability for NOVONIX and Stellantis to reach an agreement on the specific battery cell product specifications and milestones necessary for mass production qualification.
The original offtake agreement, announced in November 2024, detailed a commitment from Stellantis to purchase a minimum of 86,250 tonnes and up to 115,000 tonnes of battery materials over a six-year period. The pricing was set to be based on an agreed-upon market formula, with final product specifications to be confirmed at a later date. Commercial supply was initially targeted to commence on January 1, 2026.
Despite the setback, NOVONIX remains focused on fulfilling its existing supply commitments to Panasonic and PowerCo. The company is also actively engaged in providing samples to 15 current and potential customers across various battery and industrial applications. NOVONIX’s Riverside facility is slated to begin mass production of high-performance synthetic graphite for the battery, defence, and industrial sectors in North America next year for its lead customer, Panasonic.
To further meet rising customer demand, NOVONIX has announced plans for a second synthetic graphite manufacturing plant in Chattanooga, Tennessee. These two facilities will give NOVONIX a total production capacity exceeding 50,000 tonnes per year.
