General Discussions, page-32194

Another offtake agreement for NVX yesterday, this time to supply Volkswagen’s PowerCo over five years starting in 2027.

It signals an incoming undersupply of ex-China graphite.

“Those … agreements, at their target volumes, would exhaust all the capacity Novonix intends to have in place through 2028, said Burns.” (WSJ)

All of a sudden, OEMs and anode producers are beginning to see the already limited available supply of secure ex-China graphite being snapped up.

And as their options to diversify supply diminish, RNU will gain greater negotiating leverage for offtake agreements and pricing.

The upside is uncapped for those who are not locked in to low-price agreements.