News: NVX Novonix Selected For Us$150 Million Grant From U.S. Department Of Energy, page-37

Novonix may need a lot of capital moving forward. However, it will not cost a billion dollars to reach 30,000TPA in the sense we need to CR for that.

Novonix is planning to build a factory that will house 75,000TPA moving forward. In that factory will be the 30,000TPA this funding is going towards. I believe that the overall project for the 30,000TPA is a lot less than the $870m, but we are future proofing the factory to continue expansion during the initial phase.

We have 10,000TPA coming online in the next 12-18 months. Product will be sold to Kore Power and potential other customers before then. This funding can then be used towards the build out and/or start Novonix to qualify for US DoE Loan Program.

There is the option of strategic investment by Samsung SDI, Sanyo etc, this would be a little dilution, but a great show of commitment by our customer base.

There is potentially other funding/grant options from the US that could continue to help Novonix scale as Dr Burns has mentioned today.

As Novonix scales the 40,000TPA target for 2025, income will be generated. I dare say a lot of the negotiations with the US DoE and Novonix will be around this course of action.

Clearly Novonix and their customers have already pitched a solid plan on getting to 40,000TPA by 2025, hence why they were 1 of 20 to be selected for this grant.