HIGHLIGHTS
- NOVONIX to be exclusive supplier of graphite anode material to
KORE Power
- Five-year supply agreement initially 3,000 tonnes per annum
beginning 2024
- Subject to customer requirements, supply can ramp to 12,000
tonnes per annum
- NOVONIX takes an approximate 5% stake in KORE Power with
consideration 50% cash and 50% NVX shares
- Partnership will advance the North American electrification
economy and strengthen the domestic lithium-ion battery supply
chain in North America
NOVONIX Limited (ASX: NVX, OTC: NVNXF) (“NOVONIX”), an advanced
battery materials and technology company, today announced the
execution of definitive transaction agreements and closing of its
investment and supply agreements with KORE Power, Inc. (“KORE
Power”) to advance and strengthen the domestic lithium-ion battery
supply chain.
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The execution of the binding and definitive transaction
agreements, including a Securities Purchase Agreement and Supply
Agreement, closed in accordance with the terms set forth in a
non-binding letter of intent entered into between NOVONIX and KORE
Power, as announced by NOVONIX on January 24, 2022. Under the terms
of a Securities Purchase Agreement entered into between NOVONIX and
KORE, NOVONIX has purchased 3,333,333 shares of KORE Power common
stock ("Shares") at an issue price of USD $7.50 per share,
representing approximately 5% of the common equity of KORE Power.
The aggregate offering price for the Shares of USD $25,000,000 has
been paid in a combination of 50% cash, funded through NOVONIX's
existing cash holdings, and 50% through the issue of 1,974,723 of
ordinary shares in NOVONIX (“NOVONIX Shares”) calculated at a price
using a 5% discount to the 20-day VWAP ending three trading days
prior to closing date.
“The completion of this transaction with KORE Power marks an
important step towards establishing the domestic battery supply
chain as the first large-volume contract of battery-grade synthetic
graphite from a US-based supplier,” said Dr. Chris Burns, NOVONIX
Co-Founder and CEO. “More than ever, the United States and its
neighbors are realizing the importance of building a sustainable
and energy-secure future. Our partnership with KORE Power is a
testament to our commitment on executing on our phased growth plan
and bringing large-scale production of high-performance battery
synthetic graphite to the United States.”
“Our relationship with NOVONIX helps us secure the leading U.S.
domestic supply of synthetic graphite anode materials and related
technology for our U.S. manufacturing facility, which is
positioned to operate at 12 GWh per year with net-zero carbon
emissions due to this strategic partnership,” said KORE Power
Co-Founder & CEO Lindsay Gorrill.
An Appendix 2A has been lodged with ASX today with respect to
the NOVONIX Shares issued to KORE Power. The NOVONIX Shares have
not been registered under the United States Securities Act of 1933
and may not be offered or sold in the United States, until such
time as the Novonix Shares have been registered under the
Securities Act of 1933 or pursuant to an applicable exemption from
registration, which is expected to be for a period of six months.
KORE Power has agreed to the application of a holding lock under
the listing rules of the ASX until such time as the Novonix Shares
have been registered under the United States Securities Act of 1933
or may otherwise be sold in the United States.
As part of the transaction, NOVONIX and KORE Power have also
entered into a binding Supply Agreement, under which NOVONIX will
become the exclusive supplier to KORE Power’s U.S. large scale
battery cell manufacturing facility. NOVONIX will begin supplying
graphite anode material at a rate of 3,000 tonnes per annum (“tpa”)
beginning in 2024, and ramping up to approximately 12,000 tpa in
2027, subject to customer requirement. The Supply Agreement is for
an initial term of five years, with automatic renewal for a
subsequent five-year term. This is NOVONIX’s first significant
volume offtake agreement as the company expands its production
capacity at the new Riverside facility towards the target of 10,000
tpa of production capacity in 2023.
About NOVONIX
NOVONIX Limited is an integrated developer and supplier of
high-performance materials, equipment and services for the global
lithium-ion battery industry with operations in the U.S. and Canada
and sales in more than 14 countries.
NOVONIX is a leading producer of synthetic graphite anode
materials used in the making of lithium-ion batteries that power
electric vehicles, personal electronics, medical devices and energy
storage units. NOVONIX’s anode materials business is based in
Chattanooga, Tennessee, where its goal is to increase capacity to
produce 10,000 metric tons per year of synthetic graphite by 2023,
with further targets of 40,000 tpa by 2025 and 150,000 tpa by 2030.
NOVONIX, which has operations in the U.S. and Canada, is also a
global supplier of advanced battery-testing services.
NOVONIX's mission is to enable a clean energy future by
producing longer-life and lower-cost battery materials and
technologies.
About KORE Power
KORE Power, Inc., is the leading U.S.-based developer of battery
cell technology for the clean energy industry. With clients in
energy storage, e-mobility, utility, industrial and
mission-critical markets, KORE Power provides the backbone for
decarbonization across the globe. Optimized by its battery
management system, KORE Power designs and manufactures its
proprietary NMC and LFP cells, VDA modules and packs. Through the
construction and operations of its large-scale battery cell
manufacturing facility in the U.S., KORE is positioned to operate
at 12 GWh per year capacity. The facility (the “KOREPlex”) will
operate with net-zero carbon emissions through strategic
partnerships and solar and storage co-generation.
KORE Power’s differentiated approach provides customers with
direct access, unparalleled service, superior technology and Tier 1
product availability. Focused on building sustainable communities,
clean energy jobs and green economic expansion, KORE Power is proud
to offer a functional solution to real-world problems and fulfill
market demand to deliver a zero-carbon future. The KOREPlex is
expected to come to Buckeye Arizona and be the anchor to the
development of the Sustainable Valley by the end 2023
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This communication contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995, Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended.
This press release contains forward-looking statements about
NOVONIX and our industry that involve substantial risks and
uncertainties. All statements other than statements of historical
facts contained in this press release, including statements that
relate to the expected benefits of the potential transaction
(including future opportunities) and any other statements regarding
our future results of operations, financial condition, business
strategy and plans and objectives of management for future
operations. In some cases, you can identify forward-looking
statements because they contain words such as "anticipate,"
"believe," "contemplate," "continue," "could," "estimate,"
"expect," "intend," "may," "plan," "potential," "predict,"
"project," "should," "target," "will," or "would," or the negative
of these words or other similar terms or expressions. We have based
these forward-looking statements largely on our current
expectations and projections about future events and trends that we
believe may affect our financial condition, results of operations,
business strategy and financial needs. These forward-looking
statements are subject to a number of known and unknown risks,
uncertainties, other factors and assumptions. We undertake no
obligation to update any forward-looking statements made in this
press release to reflect events or circumstances after the date of
this press release or to reflect new information or the occurrence
of unanticipated events, except as required by law. We may not
actually achieve the plans, intentions or expectations disclosed in
our forward-looking statements, and you should not place undue
reliance on our forward-looking statements.
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version on businesswire.com: https://www.businesswire.com/news/home/20220131005948/en/
For NOVONIX Limited:
Stefan Norbom (Investors) IR@novonixgroup.com
Kiki O'Keeffe (Media) Media@novonixgroup.com
For KORE Power:
Aleysha Newton Director of Marketing Phone: +1 208 758 9392
Email: anewton@korepower.com
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