- Novonix's (NVX) subsidiary, PUREgraphite, has been awarded a US$5.57 million (roughly A$7.1 million) grant from the U.S. Department of Energy
- Novonix, Phillips 66 and existing partner, Harper International, will develop new furnace technology to make high-performing battery materials
- The company will also construct and install new processing equipment at its PUREgraphite anode material plant in Tennessee
- Novonix CEO, Dr Chris Burns, says the award shows the government's commitment to support a domestic supply of high-performing battery material
- Novonix's share price is up 17.3 per cent on the back of this news and is trading at $2.44
Novonix's (NVX) wholly-owned subsidiary, PUREgraphite, has been awarded a grant from the U.S. Department of Energy (DOE).
The grant is valued at US$5.57 million (roughly A$7.1 million) and involves the development of new furnace technology to make high-performing battery materials at a globally competitive cost.
Significantly, PUREgraphite's submission was the only graphite-based project to be funded under the Advanced Manufacturing Office FY20 Critical Minerals Funding Opportunity Announcement (FOA).
The multi-year award will include engineering, construction and installation of new processing equipment at the PUREgraphite plant in Tennessee.
Novonix operates the PUREgraphite anode material plant which is set to produce 2000 tonnes per year of synthetic graphite. As part of this ramp-up, the company will supply an initial 500 tonnes to world-leading lithium-ion battery maker, Samsung SDI.
The DOE-funded project will develop furnace technology that will enhance Novonix's synthetic graphite manufacturing process.
The total cost of the project will be just over US$11.5 million (roughly A$14.8 million) and this included PUREgraphite's contribution of about $5.9 million (roughly A$7.6 million) which will be funded from existing reserves.
"This award demonstrates the commitment by the government to support the
establishment of a domestic supply of high-performance battery materials. It also highlights the expertise, progress, partners and technology we have assembled at PUREgraphite," Novonix CEO Dr Chris Burns said.
PUREgraphite will partner with Phillips 66 and Harper International, which it signed a strategic alliance with in December last year.
Harper International Vice President, Paul Elwell says he is glad to be partnering on this innovative project.
"This decision highlights the significance of our close collaboration with the Lithium-Ion battery material specialists at PUREgraphite as we develop and validate next-generation thermal process technologies to address the nation's critical supply chain needs," he said.
Novonix's share price is up 17.3 per cent on the back of this news and is trading at $2.44 at 10:20 am AEDT.