- Novonix (NVX) partners with Saudi Arabian energy specialist TAQAT to produce anode materials for electric vehicles
- The parties have formed a joint venture (JV) to develop and produce high-performance graphite anodes for EVs and energy storage system (ESS) batteries
- The JV will establish a 30,000-tonne-per-annum graphite anode materials facility in Saudi Arabia, with the produced material to be used across the MENA region
- NVX CEO Chris Burns says the joint venture will leverage the company’s work in North America and extend its operations to reach the global market
- NVX shares are up 9.87 per cent and trading at 1.28 cents at 2:00 pm AEDT
Novonix (NVX) has partnered with Saudi Arabian energy specialist TAQAT to produce anode materials for electric vehicles.
The parties on Friday announced plans to form a joint venture (JV) to develop and produce high-performance graphite anodes for EVs and energy storage system (ESS) batteries for the Middle East and North Africa (MENA) region.
As part of the agreement, the JV will establish a graphite anode materials facility in Saudi Arabia with a capacity of 30,000 tonnes per annum (tpa).
TAQAT will hold a 60 per cent equity stake in the JV, with Novonix to own the rest.
“The joint venture will leverage Novonix’s existing work in North America and will allow us to better scale our operations to extend our geographical reach to the global market,” NVX CEO Chris Burns said.
“We believe the joint venture will enhance our financial strength and profitability by both driving revenues and accessing cost-competitive, quality feedstock for projects outside of North America.”
The partnership comes as the Saudi Arabian government works to create a more sustainable economy by investing in renewable energy and setting the goal of having 30 per cent of all vehicles on its road electric by 2030.
“NOVONIX’s battery anode manufacturing expertise coupled with TAQAT’s anticipated strong financial support will help bring the first anode materials facility to Saudi Arabia,” Mr Burns said.
Looking ahead, NVX and TAQAT plan to provide initial funding for a front-end engineering and design (FEED) study and obtain merger control clearance from Saudi Arabia’s General Authority before the end of March 2024.
Engineering for the facility will be conducted this year, with facility construction slated for 2024.
NVX shares are up 9.87 per cent and trading at 1.28 cents at 2:00 pm AEDT.