NOVONIX Limited, an advanced battery materials and technology company, has announced the execution of a letter of intent to enter into investment and supply agreements with KORE Power, Inc. 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.”