Novonix and Artificial Graphite Joint Development Agreement
$30 Million Strategic Investment Contract Signed
Strengthening North American Battery Core Material Supply Chain
LG Energy Solution is strengthening its core battery material supply chain in the North American region.
On the 7th, LG Energy Solution announced that it has signed a Joint Development Agreement (JDA) and a strategic investment contract with Australian battery material and equipment company Novonix for the joint development of artificial graphite, a key material for battery anodes.
On the 10th, LG Energy Solution headquarters on Yeouidaero, Yeongdeungpo-gu, Seoul. Photo by Jinhyung Kang aymsdream@
The two companies expect to secure more than 50,000 tons of artificial graphite over 10 years if product development is successful. They also agreed that LG Energy Solution will have exclusive supply rights for a certain period of Novonix's production volume and purchase products at competitive prices.
Additionally, to establish a solid partnership, LG Energy Solution decided to invest approximately $30 million (about 39 billion KRW) to acquire convertible bonds (CB) of Novonix.
Headquartered in Brisbane, Australia, Novonix is an anode material manufacturer established in 2012. It currently operates an artificial graphite production plant in Tennessee, USA, enabling it to respond effectively to the Inflation Reduction Act (IRA).
Through this agreement, LG Energy Solution plans to strengthen the core material supply chain in the North American region to effectively respond to the IRA. Last year, the proportion of Chinese imports in artificial graphite by domestic companies was 91.1%, making diversification of the supply chain in the anode material sector urgent to meet IRA requirements.
Kim Dong-su, Executive Vice President and Head of the Purchasing Center at LG Energy Solution, said, "Through cooperation with Novonix, which has production capabilities in the North American region, we can stably secure anode materials, a core battery material, and actively respond to the rapidly increasing customer demand. We will proactively establish a core raw material supply chain to provide customers with world-class QCD (Quality, Cost, Delivery)."
Chris Burns, CEO of Novonix, said, "We are pleased to supply high-performance artificial graphite to LG Energy Solution. Our cooperation with LG Energy Solution will play a significant role in leading the establishment of the artificial graphite supply chain in the North American battery market going forward."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
