Media Watch - NVX related, page-4084

Phillips 66 Q3 2021 Earnings Call Transcript



Manav Gupta -- Credit Suisse -- Analyst
Hi, everybody. If you could give us some idea of this NVX deal. You're taking 16% interest in them. How did it come out stepping into battery something? We haven't seen you do before or any refiner do now. I mean, what I'm trying to get to is we kind of know you make needle coke. You won't tell us how much you make or what the price is, but we kind of know it's there. And I'm trying to understand if there are some synergies between that needle coke and the NVX deal that you did?

Greg C. Garland -- Chairman and Chief Executive Officer
Who want to state that?

Robert A. Herman -- Executive Vice President, Refining
I'll jump in. I'll jump in. Well, yes, Novonix, yes, we've identified four-key areas that we want to focus on in renewables to generate strong returns. That's renewables, batteries, hydrogen and carbon capture. So this particular opportunity falls under the battery pillar.

And as you noted, we've got a very good feedstock that can be used to generate synthetic graphite to go into anodes. And we went through a screening process as these anode producers are looking at ways to provide shorter supply chain options for those that need their services like those that are building electric vehicles. And Novonix rose to the top of that screening process in North America. And we like the team, we like the technologies they were employing. They've got a low carbon intensity technology to produce the synthetic graphite. They're locating in a place where they can get low carbon electricity. And it's a great way for us to move up the value chain in battery manufacturing and supporting the growth in electric vehicles.

Brian Mandell -- Executive Vice President, Marketing and Commercial
I think maybe the other thing I might add is we know a lot about the specialty coke that goes into the anodes and how to tailor that and make properties around that.
But the further up the value chain we get, the more we can understand how we can make those properties special, right, and so that we can drive more value creation. And at the end of the day, better batteries.
And so that's part of what's driving this is to seek to understand the ultimate customers in this market so we can help drive performance.

Jeff Dietert -- Vice President, Investor Relations
I think the other thing I'd add is there's an increased focus on local content within the U.S. and in Europe and the advantage of having U.S. facilities serving that market.