My bet is 5k TPA is all Novonix wants to sell then as what is sure to be a favorable price for LG. LG is making an investment and partnering so can leverage that fact to drive a good deal. Unlike some here, I hope the current announcements are small in scale and long in term, much like this one. Benchmark has stated many times that they expect anode to be in deficit soon. This implies a much higher price in the future and while it is clear that NVX must have offtakes in place in order to build to scale, once they have orders in hand for the minimum to begin building the rest of their capacity should be held back to get the MUCH higher margins later in the decade.
On another note, Jigar Shah has said numerous times in interviews that as part of the LPO program, equity comes before debt. This new deal de-risks the project from the LPO office perspective significantly as now there is a Joint Development Agreement as well as another company who has agreed to finance part of the project. This makes two of the largest and most important players in the space who are putting money into the NVX technology. Phillips 66 on the input side, and now LGES on the offtake side. IMHO this nearly guarantees a huge loan from the US DOE in addition to the $150,000,000 grant. I can't wait for them to turn on the money spigot, we're gonna run out of buckets to carry it away.
NVX Price at posting:
$1.16 Sentiment: Buy Disclosure: Held
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