Panasonic Energy has recently solidified a pivotal purchase agreement with battery materials specialist Novonix, ensuring the provision of synthetic graphite for electric vehicle (EV) battery anodes in the United States. Under the binding deal, Novonix commits to supplying a minimum of 10,000 tonnes over a four-year period, commencing in 2025.
Novonix will manufacture the crucial anode material at its Chattanooga, Tennessee facility, strategically located in a city known for hosting VW’s US plant in Germany. Although the specific application of the synthetic graphite remains undisclosed in the announcements made by both companies, it is confirmed that the material will undergo processing in North America. This aligns well with Panasonic’s operations, particularly its collaboration with Tesla at the Giga Nevada facility, where 2170 round cells are currently in production. Notably, Panasonic had hinted at the possibility of introducing an improved version of these cells earlier this year. Additionally, the timeline coincides with the construction schedule of Panasonic’s battery plant in Kansas, slated to commence cell production in March 2025.
Production at Novonix’s Chattanooga plant is expected to commence towards the end of 2024, with plans for capacity expansion to 20,000 tonnes per year. This enhanced capacity positions Novonix to potentially serve other cell manufacturers besides Panasonic. Although negotiations with LG Energy Solutions (LGES) are ongoing, a finalized agreement akin to the Panasonic deal has yet to be announced.
Graphite plays a critical role in the anodes of lithium-ion batteries, typically applied thinly to copper carrier foils. While natural graphite from China remains predominant in current usage, the US government’s efforts to mitigate dependencies on foreign raw materials have garnered significant support. The US Department of Energy has notably awarded Novonix’s Chattanooga plant $100 million in grants. Panasonic’s diversification efforts extend beyond graphite, with a recent order of silicon anode material from Sila in December.
In expressing optimism about the partnership, Shoichiro Watanabe, CTO of Panasonic Energy, emphasized its potential to bolster the local supply chain and reduce carbon footprint as part of the company’s medium-to-long-term management objectives. Chris Burns, CEO of Novonix, echoed this sentiment, stating, “We are excited to announce the finalization of a binding off-take agreement with Panasonic Energy to become a supplier of key anode material for its North American based facilities. Off-take agreements with high-quality partners such as Panasonic Energy solidify NOVONIX’s position as a leader in onshoring the supply chain of synthetic graphite and accelerating the adoption of clean energy in the industry.”
