Thanks mate. That's a LOT of work they've done. And 'clear and grub' work is only done immediately preceding construction works for a variety of practical, cost saving and environmental reasons.
I must have been on my phone when I read the news from Times Free Press. FYI Mike Pare has been dropping breadcrumbs for a while and is clearly dialed into the VW/Novonix relationship as the local journo who almost always covers related news.
A few things:
- Chattanooga Area Chamber of Commerce Chief Executive Charles Wood said that "they're demolishing some existing structures and doing some clearing," 'They' is actually referring to VW I believe. Ordinarily 'make good' provisions in a commercial lease would require reinstatement to pre-existing condition which is clearly not the case here. VW, who could we be contributing prepayment for anode material from Novonix are doing work that is seemingly far in excess to ordinary contractual requirements. Why would they do this?
- "Wood said the concept of the release of the option on the land was part of an agreement with VW a few years ago. But, he said, the city and Hamilton County recently approved work on the site." We understand that VW and NVX have been in discussions for years, and we believe that Novonix needs to get started asap on its Greenfield facility to meet 2025 production targets. Why would the authorities only 'recently' approve work to the site when VW - the f***ing leasee - aren't planning any works on the site?
- Wood also said "Ideally it aligns with what VW is doing over time in the EV sector and that sort of thing." JFC.
Personally I still think this is the worst kept secret going around. The real secret is how big the deal with VW will be initially and when ramped. For context, VW Ontario will need a million kg per year (100ktpa) of active anode material when fully operational. VW will have trucks and/or trains coming down from Ontario to load into EVs in Chattanooga... then... what... heading back empty to Ontario? Of course it makes sense to fill the empty wagons with NAM for little extra transport cost.
Not to say a Panasonic offtake won't be the first major Tier 1 offtaker announced.
https://www.timesfreepress.com/news/2023/jun/05/vw-gives-up-182-acre-site-near-chattanooga-plant-tfp/#:~:text=Jermaine%20Freeman%2C%20interim%20chief%20of,at%20Enterprise%20South%20industrial%20park.
VW gives up 182-acre site near Chattanooga plant
Chattanooga Area Chamber of Commerce pursues potential EV-related company
June 5, 2023 at 8:20 p.m.by Mike PareFollowStaff file photo /
The Enterprise South complex including Volkswagen's Chattanooga production is shown in 2012.Volkswagen Group of America is giving up an option on a large vacant tract near its Chattanooga production plant,and an official said plans are to market the land potentially to a company involved in the electric vehicle space."We're actively kind of marketing that," said Chattanooga Area Chamber of Commerce Chief Executive Charles Wood on Monday. "Ideally it aligns with what VW is doing over time in the EV sector and that sort of thing."Jermaine Freeman, interim chief of staff for Chattanooga Mayor Tim Kelly, told the city's Industrial Development Board at a meeting that VW agreed to release its option on a 182-acre tract at Enterprise South industrial park."This allows for the chamber and the city and county to work together to continue to pursue economic development activity on this property," he said.The board, which officially holds title to the sprawling industrial park where VW has major operations, approved the request.Wood said in an interview after the meeting that the property is generally along Highway 58 near Ferdinand Piech Way. That road was recently completed to run from Highway 58 to Interstate 75 through the industrial park.Wood said the concept of the release of the option on the land was part of an agreement with VW a few years ago. But, he said, the city and Hamilton County recently approved work on the site."They're demolishing some existing structures and doing some clearing," Wood said.
Novonix, a maker of materials for batteries for EVs that already has a manufacturing operation in Chattanooga, has indicated that it's looking for a site for a second facility that could ultimately employ 1,000 more people.To aid that effort, Novonix in November won approval for $150 million in project funding from the U.S. Department of Energy.Daniel Deas, president of the company's anode materials division, said in an earlier interview that the Chattanooga area is in the running among other locations for the new plant.Novonix was expected to have had 100 employees by the end of 2022 at its existing site at The Bend on Riverfront Parkway, in the former Alstom plant.Wood said Monday the Enterprise South parcel that VW is releasing has water, sewer and electricity."There's a significant amount of infrastructure on the site," he said.VW, which employs about 5,000 people in Chattanooga building the ID.4 electric SUV and the conventionally powered Atlas and Atlas Cross Sport SUVs, still has several hundred acres of land next to the factory.Company officials have said they could mirror the existing plant should VW decide to make the investment.
(20min delay)