The US Department of Energy reports that on December 16, 2024, the Loan Programs Office announced a conditional commitment for a direct loan of up to $754.8 million to NOVONIX to finance the construction of a new facility in Chattanooga, TN, to manufacture synthetic graphite a critical component used in EV batteries. They write:
The U.S. Department of Energy (DOE), through the Loan Programs Office (LPO), today announced a conditional commitment for a direct loan of up to $754.8 million ($692 million in principal and $62.8 million in capitalized interest) to a subsidiary of NOVONIX Limited (NOVONIX). NOVONIX’s loan application to LPO was substantially completed in May 2023. The loan would help finance the construction of NOVONIX’s new facility in Chattanooga, Tennessee, to manufacture synthetic graphite, a critical component used in electric vehicle (EV) batteries. […]
Synthetic graphite, often blended with natural graphite, is the most commonly used anode material for EV lithium-ion battery manufacturing and is currently imported almost exclusively from China. Synthetic graphite can be manufactured at a higher purity than natural graphite, leading to improvements in battery performance, reliability, and longevity. There is currently no large-scale battery-grade synthetic graphite manufacturing capacity in North America, creating a pronounced gap in both the domestic automotive supply chain and clean energy supply chain. […]
At full capacity, the facility is expected to produce 31,500 metric tonnes per year of synthetic graphite, which can support the production of lithium-ion batteries for approximately 325,000 EVs each year.
The sponsor, NOVONIX, is a battery materials and technology company that aims to serve the global battery supply chain for EVs. The company’s novel graphitization process involves the usage of continuous induction-based furnaces, which have much lower energy consumption, emissions, and local pollution profiles compared to traditional synthetic graphite manufacturing processes. This year, NOVONIX has signed binding offtake agreements to supply synthetic graphite to Panasonic Energy, Stellantis and PowerCo for graphite produced at an existing facility separate from this conditional commitment. […]
If finalized, the loan would be offered through the Advanced Technology Vehicles Manufacturing (ATVM) Loan Program, which provides loans to support U.S. manufacturing of advanced technology vehicles, qualifying components, and materials that improve fuel economy. Today’s announcement is LPO’s latest effort to bolster domestic supply chains of critical minerals and materials, strengthening the nation’s energy security.
