- American multinational energy company Phillips 66 is buying 16 per cent stake in Novonix (NVX) in an all-share deal valued at US$150 million (around A$204 million)
- Phillips 66 has agreed to purchase nearly 78 million shares in the Australian-based company
- Under the agreement, Phillips 66 will be able to appoint one director to join NVX’s Board
- The Phillips 66 investment will support a capacity expansion of an additional 30,000 metric tons per year to Novonix’s Tennessee anode materials business
- Ahead of market open, NVX last traded at $3.02 per share
American multinational energy company Phillips 66 has agreed to purchase a 16 per cent stake in Novonix (NVX) in an all-share deal valued at US$150 million (around A$204 million).
Under the deal, Phillips 66 will grab nearly 78 million shares in NVX and will be able to nominate one director to the board.
However the deal will need approval from Phillips 66 shareholders and meet other customary closing conditions.
Phillips 66 is a global manufacturer of specialty coke, a key ingredient in creating batteries that power electric vehicles, personal electronics, medical devices and energy storage units.
Novonix’s anode materials business is based in Chattanooga, Tennessee, where it plans to increase capacity to produce 10,000 metric tons per year of synthetic graphite by 2023.
The Phillips 66 investment will support a capacity expansion of an additional 30,000 metric tons per year, expected to be completed by 2025.
Chairman and CEO of Phillips 66 Greg Garland said the investment allows Phillips 66 to directly support the development of the US battery supply chain.
“It advances our commitment to pursue lower-carbon solutions while leveraging our leadership position and expertise in the specialty coke market and supporting Novonix’s emerging position in U.S.-based anode production,” he said.
Novonix CEO and co-founder Chris Burns is pleased with the investment from Phillips 66.
“We’re excited by Phillips 66’s vision for a sustainable future and confidence in our business plan and management team,” he told the market.
“Phillips 66’s investment will provide us with the capital needed to support growth and ongoing R&D as we continue to scale our synthetic graphite production and develop new technologies for higher-performance energy
Just before the market opens today, NVX last traded at $3.02 per share.