Global battery manufacturer LG Energy Solution (LGES) and battery materials and technology company Novonix have signed an agreement for the joint research and development of artificial graphite anode material for lithium-ion batteries, particularly for EVs.
In a separate agreement, Brisbane-headquartered Novonix has agreed to issue an aggregate principal amount of A$45 million (US$30m) unsecured convertible notes to LGES.
Upon successful completion of certain development work under the joint development agreement, LGES and Novonix 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.
With two stand-alone and five joint venture plants operating or being constructed in the US, LGES plans to maximise the benefits from the Inflation Reduction Act (IRA) by expanding local battery production, as well as establishing a local supply chain for battery components.
To solidify its market leadership in North America, LGES further aims to expedite the localisation of manufacturing and assembly of battery components, including electrodes, cells, and modules.
Novonix aims to provide a robust, sustainable supply chain option for high performance artificial graphite in North America, and with operating sites in Chattanooga, Tennesse, will produce IRA-compliant materials for its US customers.
“This agreement demonstrates our leading position to establish a supply chain for high-performance artificial graphite for the battery industry in North America,” says Novonix chief executive Chris Burns.
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