Novonix invests in Kore Power, enters supply agreement

Novonix, an advanced battery materials and technology company, announced it has executed a letter of intent to enter into investment and supply agreements with Kore Power, a US-based manufacturer of high-energy-density lithium-ion pouch cells and module configurations for the electric vehicle and energy sector applications.

According to the two companies, the deal was pursued 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.

The move has also been painted as the natural evolution of the two companies’ existing relationship. Novonix and Kore first collaborated in 2019, when the parties entered into testing agreements to focus on validation and development of KORE Power’s battery cell technologies.

Once the deal reaches final approval, 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 US. Kore currently has an annual production capacity of 2GWh and expects to expand to a total annual capacity of 18GWh by the end of 2030.

This jump in production capacity is expected to be facilitated by Kore Power’s plans to build a 12GWh manufacturing facility in Buckeye, Arizona to support the local market need for battery cells and systems. This facility will need close to 12,000 tonnes per year of graphite anode material when fully operational, which will be supplied by Novonix.

Novonix is planning a new facility of its own, with the company announcing in July 2021 plans to purchase and retrofit a 400,000+ square foot plant in Chattanooga, Tennessee to accommodate their planned production of 8,000 tons of anode materials.

The company said this phase of growth will support the production of anode materials that can supply lithium-ion battery packs for over 100,000 EVs. The expansion plan will bring Novonix’s annual anode material production capacity to 10,000 tons annually by 2023. 

Novonix also has supply agreements underway with Sanyo Electric of Japan and Samsung of South Korea, both major international manufacturers of EVs and energy storage systems worldwide.