Ann: PowerCo and NOVONIX Enter Testing and Development Agreement, page-3

PowerCo SE and NOVONIX Enter into a Testing and Development Agreement

May 14, 2024 at 6:32 PM EDT

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BRISBANE, Australia, May 15, 2024 (GLOBE NEWSWIRE) -- NOVONIX Limited (NASDAQ: NVX, ASX: NVX), a leading battery materials and technology company, and PowerCo SE (“PowerCo”), a Volkswagen Group-owned battery cell company, have announced the signing of a non-exclusive Testing and Development Agreement (“TDA”). The work to be conducted under the TDA will include NOVONIX developing, testing, and analyzing synthetic graphite anode materials tailored to meet PowerCo’s requirements and upon successful completion of certain development work under the TDA, NOVONIX and PowerCo may enter into a supply agreement for developed products with details to be determined at that time.

Established by Volkswagen in 2022, PowerCo is committed to leading global battery cell production. The company oversees international factory operations, advances in cell technology, and vertical integration of the battery value chain. PowerCo has identified three gigafactory locations - Salzgitter in Germany, Valencia in Spain, and St. Thomas in Canada- with a combined capacity of up to 200 GWh/year. The TDA could lead to future collaboration with NOVONIX with a focus on requirements of the St. Thomas facility and aims to bolster the development of the North American battery materials supply chain.

NOVONIX’s Riverside facility is poised to become North America's first large-scale production facility of high-performance synthetic graphite for batteries, targeting commencement of production by late 2024 and scaling to 20,000 tonnes per annum to meet growing demand. The recent allocation of US$100 million in grant funding from the U.S. Department of Energy Office of Manufacturing and Energy Supply Chains, along with US$103 million in Qualifying Advanced Energy tax credits, will reinforce the company's commitment to strengthening the local supply chain. NOVONIX plans to further expand capacity to a total of 150,000 tonnes per annum of production capacity in North America.

This announcement has been authorized for release by NOVONIX Chairman, Admiral Robert J. Natter, USN Ret.