Hi Everyone cant get link to work on hotcopper, so have cut and pasted the article, worth a read.
Battery materials company Novonix Limited says COVID-19 might have slowed electric vehicles sales in the short term but it has sharpened
Washington’s focus on investing in non-China supply chains.
Novonix has caught the eye of the US government after establishing itself as a credible non-Chinese supplier of synthetic graphite anode material and a potential ground-breaker in cathode technology.
The company, which has Washington H. Soul Pattinson and Regal Funds Management as substantial shareholders, is looking to build on an initial supply agreement with Samsung to fund ambitious growth plans.
But it could also tap into attractive US government loan packages aimed at supporting advantaged manufacturing as Washington seeks to cut its reliance on China.
Novonix is also trying to patent technology it has developed around producing single-crystal cathode materials that are vital in producing longer life, or so-called million-mile, batteries.
Working in Novonix’s favour is that its board includes former DowDuPont executive chairman Andrew Liveris and former US Atlantic fleet commander in chief Robert Natter
The company also has the backing of coal baron Trevor St Baker. His son Philip is the managing director.
Novonix chief executive Chris Burns and Mr Natter have been doing the rounds in Washington and having some input on legislation around critical minerals.
“There is no question this has been an active area for us and when we look at North America and the US specifically, they have identified this as a national security issue with the reliance on China,” Dr Burns said.
Critical minerals
“We are continuing to work with some folks in Washington on understanding the opportunity here and how we can provide a domestic alternative.”
Dr Burns, who founded Novonix after working as a battery engineer with Tesla and alongside lithium-ion battery pioneer Jeff Dahn at Dalhousie University in Halifax, said COVID-19 could help accelerate government investment in critical minerals and battery materials supply chains because it had highlighted how reliant the US and other countries were on China.
"Countries are becoming more aware and putting more focus on investing on development outside of China," he said.
The US is dependent on imports of synthetic graphite and China dominates global supply.
ASX-listed Novonix does produce its graphite anode materials in Chattanooga, Tennessee, and it is based on US precursors and technology. The company's other research and development facilities are in Canada.
In the sense that it is contained to North America, Novonix does not face the same headwinds as rare earths producer Lynas Corporation in winning universal US government backing.
Lynas looked set to receive US military funding for a heavy rare earths processing plant in Texas but that is in doubt after a group of Republican senators pounced on the fact that the company’s supply chain started with mining in Australia and included intermediate processing in Malaysia.
Novonix has an initial contract with Samsung to supply 500 tonnes of synthetic graphite material and expects delivery to start around October.
It also has an MoU with Panasonic subsidiary Sanyo and is confident of reaching a supply agreement.
Dr Burns said the company aimed to achieve annual production of 2000 tonnes within two years and then increase that to 25,000 tonnes a year.
"We expect to bring Sanyo on as a customer based on our relationship and our progress with them and expand this customer base, and then moving to the back half of the decade is really our phase three plans of going to 100,000 tonnes a year," he told a recent investor webinar.
Brad Thompson writes across business and politics from Western Australia for The Australian Financial Review. Brad is based in our Perth bureau. Connect with Brad on
Twitter. Email Brad at
bradthompson@copyright link
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