Australia’s Novonix announced that a division of automaker Stellantis has terminated its offtake agreement after the two parties could not reach consensus on product specifications. The original deal, signed in November 2024, called for a minimum supply of 86,250 tonnes of battery-grade graphite over six years, with an option to supply up to 115,000 tonnes. Under the arrangement, material was to be shipped from Novonix’s Riverside facility in Chattanooga, Tennessee, to Stellantis’ cell manufacturing partners in North America.
Following the announcement, Novonix shares fell as much as 15 percent to A$0.480, their lowest price since October 3. The decline marked the fourth consecutive session of losses for the stock. Novonix described Stellantis’ decision as “disappointing” but emphasized its ongoing commitments to other major clients, including Panasonic Energy and Volkswagen’s battery unit, PowerCo. The company also noted that it continues to supply samples to 15 current and prospective customers in battery and industrial markets.
Last year, Novonix secured a conditional US government loan commitment of US $754.8 million to help finance a proposed synthetic graphite plant in Chattanooga. Once operational, that facility is expected to produce approximately 31,500 metric tons of synthetic graphite annually—enough to support lithium-ion battery production for about 325,000 electric vehicles each year.
Stellantis, which manufactures brands such as Jeep, Fiat and Chrysler, did not immediately respond to a request for comment. Novonix said it remains focused on delivering to its other partners and advancing its sample-supply program as it moves forward with planned expansions in North America.
Source: Reuters
