NOVONIX, a battery materials firm, and LG Energy Solution, a battery manufacturer, have announced a partnership to produce artificial graphite anode material for lithium-ion batteries. NOVONIX also agreed to issue $30 million in unsecured convertible notes to LG Energy Solution.
LG Energy Solution and NOVONIX will engage in a separate purchase agreement when specific development work is completed, allowing LG Energy Solution to buy up to 50,000 tons of artificial graphite anode material over a 10-year period from the start of mass production. NOVONIX’s Tennessee facility will create graphite anode material. The material for testing will be supplied from NOVONIX’s pilot plant in 2023 and its mass production facilities in 2024 and 2025. NOVONIX has also proposed developing a greenfield factory, which will produce 30,000 tons of active anode material per year.
LG Energy Solution said it plans to maximize the benefits from the US Inflation Reduction Act (IRA) by expanding local battery production, as well as establishing a local supply chain for battery components. The company aims to expedite the localization of manufacturing and assembly of battery components, including electrodes, cells and modules.
“Our partnership with NOVONIX once again demonstrates LG Energy Solution’s determination to meet our customers’ needs for lRA-compliant batteries,” said Dongsoo Kim, Senior VP of Procurement Center at LG Energy Solution. “We will work with NOVONIX in developing a new source of artificial graphite anode material.”