Novonix receives conditional financing offer for Chattanooga graphite plant

Novonix receives a conditional U.S. financing offer for a new Chattanooga synthetic graphite plant, with phased capacity and workforce plans.

Conditional support for a new plant

Novonix has received a conditional commitment for a U.S. Department of Energy loan of up to $754.8 million for a proposed synthetic graphite facility in Chattanooga, Tennessee. The offer was announced on 16 December 2024.

The new plant is expected to produce 31,500 metric tonnes annually and create 450 operational jobs. Novonix anticipates full production capacity by the end of 2028. These are planned production and employment figures for the proposed facility.

Conditional offer and planned full production

Financing terms and production phases

The proposed loan comprises up to $692 million in principal and $62.8 million in capitalized interest. The non-binding term sheet describes two primary financing tranches, linked to phased completion of infrastructure and production lines:

The first tranche would support site infrastructure and 21,000 tonnes of annual capacity.
The second would support another 10,500 tonnes of annual capacity.

Novonix plans a subsequent expansion towards 75,000 tonnes annually, depending on customer demand and additional financing. DOE must complete an environmental review, and the company must satisfy technical, commercial, legal and financial conditions before definitive financing documents and funding. The offer remains conditional.

Novonix company identity

Graphitization and workforce preparation

Novonix's graphitization process uses continuous induction-based furnaces. DOE's December 2024 assessment anticipated lower energy consumption, emissions and local pollution than traditional synthetic graphite manufacturing processes. Synthetic graphite is used in electric-vehicle battery anodes and is often blended with natural graphite. The financing proposal concerns manufacturing this battery material, rather than assembling finished batteries.

Novonix works with Tennessee State University's Engineering Department and participates in campus hiring fairs. Its Institute of Advanced Battery Technology provides a high-school training programme with Hamilton County Schools. Through the schools' Future Ready programme, students at Lookout Valley High School receive a technical curriculum based on science, technology, engineering and mathematics. These local partnerships support workforce preparation.

Riverside remains a separate operation

The existing Riverside facility in Chattanooga is scheduled for commercial production in 2025, with a target of 20,000 tonnes annually. Novonix has supply agreements with Panasonic Energy, Stellantis and PowerCo for material from that operation.

Riverside has received a $100 million DOE grant and a $103 million investment tax-credit allocation. Its capacity target and support are separate from the proposed new plant's conditional loan.