Battery materials and technology company NOVONIX has executed a definitive agreement to purchase a 182-acre parcel of land for $5 million in the Enterprise South Industrial Park in Chattanooga, Tennessee for its second facility to produce synthetic graphite.

The new facility is expected to reach an initial annual production capacity of 31,500 tonnes. Alongside NOVONIX’s Riverside facility, which is scaling up to 20,000 tonnes, it will bring the company’s total production capacity of over 50,000 tonnes in Chattanooga.

The agreement follows recent unanimous approvals from the City of Chattanooga, Hamilton County, and the Chattanooga Industrial Development Board, completing the necessary local government endorsements for the acquisition.

NOVONIX is expected to receive approximately $54 million in total net tax and other benefits from the City of Chattanooga and Hamilton County over a 15-year period, contingent upon meeting specific conditions outlined in the agreement.

The company does not intend to close on the purchase of the Enterprise South land until the conditions for a $754-million loan from the Loan Programs Office of the US Department of Energy are met.

“Finalizing the agreement for Enterprise South, marks a significant step in our expansion strategy,” Robert Long, Interim CEO and CFO of NOVONIX, stated. “Our collaboration with the City of Chattanooga, Hamilton County, and the Chattanooga Industrial Development Board has been instrumental in reaching this point.”​

Source: NOVONIX