NOVONIX to be exclusive supplier of high-performance graphite anode materials to KORE Power’s U.S. facility
Brisbane, Australia & Coeur d'Alene, Idaho – January 24, 2022 – NOVONIX Limited (ASX: NVX,¬ OTC: NVNXF) (“NOVONIX”), an advanced battery materials and technology company, today announced the execution of a letter of intent to enter into investment and supply agreements with KORE Power, Inc. (“KORE Power”), as part of an ongoing joint effort to strengthen the North American battery supply chain, from key materials to cell and pack manufacturing for electric vehicles and energy storage systems.
Pending board approvals of both companies and the execution of definitive documentation, NOVONIX will acquire an approximately 5% stake in KORE Power and will become the exclusive supplier of graphite anode materials to KORE Power’s large-scale battery cell manufacturing facility in the U.S. The letter of intent is non-binding and subject to the execution of definitive documents and other customary conditions. If approved, these agreements are expected to close in early 2022.
NOVONIX and KORE Power began working together in 2019 when the parties entered into testing agreements to focus on validation and development of KORE Power’s battery cell technologies. Through the arrangement, the parties have continued to test existing and new materials and designs for use in future KORE Power products found in electric vehicles and energy storage systems. KORE Power has announced plans to build a 12 gigawatt-hour (GWh) facility in Buckeye, Arizona to support the local market need for battery cells and systems, and this facility will need close to 12,000 tonnes per year of graphite anode material when fully operational.
“NOVONIX and KORE Power have been actively working together to improve battery technology utilizing NOVONIX’s proprietary cell testing technologies, and these agreements deepen our longstanding collaboration,” said Dr. Chris Burns, NOVONIX Co-Founder and CEO. “Through our partnership, we showed KORE Power’s cell performance as comparable to global Tier 1 cell providers, and we are excited to continue to strengthen that technology. We are reducing the reliance on foreign materials and furthering the United States’ position as a global energy storage leader by providing high-capacity long-life synthetic graphite anode material to a leading domestic developer.”
“This partnership represents a natural fit for two companies committed to establishing a North American battery sector and facilitating a sustainable future” said KORE Power Co-Founder & CEO Lindsay Gorrill. “The booming U.S. market is leading the global transition to grid-scale battery systems, and with the support of NOVONIX, we’re energized to work towards building a secure domestic supply chain for energy storage.”
Under the proposed Securities Purchase Agreement, NOVONIX would agree to purchase 3,333,333 shares of KORE Power common stock ("Shares") at an issue price of $7.50 per share. The aggregate offering price for the Shares will be paid in a combination of 50% cash and 50% ordinary shares of NOVONIX (“NOVONIX Shares”), at a valuation equal to 95% of the 20-day volume weighted average trading price of NOVONIX Shares on the ASX ending three days prior to the closing date. Simultaneously with the contemplated investment, NOVONIX and KORE Power shall enter into a supply agreement on mutually agreed terms. The cash component of the offering price will be funded from NOVONIX's existing cash reserves. NOVONIX Shares which are issued as part of the purchase consideration for the Shares, will be issued to KORE Power within NOVONIX's existing placement capacity under the ASX Listing Rules.
NOVONIX Limited is an integrated developer and supplier of high-performance materials, equipment and services for the global lithium-ion battery industry with operations in the U.S. and Canada and sales in more than 14 countries.
NOVONIX is a leading producer of synthetic graphite anode materials used in the making of lithium-ion batteries that power electric vehicles, personal electronics, medical devices and energy storage units. NOVONIX’s anode materials business is based in Chattanooga, Tennessee, where its goal is to increase capacity to produce 10,000 metric tons per year of synthetic graphite by 2023, with further targets of 40,000 mt/year by 2025 and 150,000 mt/year by 2030. NOVONIX, which has operations in the U.S. and Canada, is also a global supplier of advanced battery-testing services.
NOVONIX's mission is to enable a clean energy future by producing longer-life and lower-cost battery materials and technologies.
About KORE Power:
KORE is a leading U.S.-based developer of battery cell technology and integrated solution manufacturer for the energy storage and e-mobility sectors. With clients in energy storage, e-mobility, utility, industrial and defense markets, KORE provides battery products and solutions that are the backbone for decarbonization across the globe. KORE is uniquely positioned to serve these markets as an integrated provider of cells, batteries, and solutions. Commercial production at the KOREPlex is targeted for the end of 2024, early 2025. The KOREPlex will have an initial annual production capacity of 6 GWh of battery cells, which may be expanded to 12 GWh to meet market demand. KORE is headquartered in Coeur d’Alene, Idaho, with operations in Waterbury, Vermont, and Buckeye, Arizona.