Stellantis Terminates Novonix Synthetic Graphite Offtake Deal

Novonix Ltd experienced a significant setback as Stellantis NV terminated its offtake agreement for synthetic graphite due to disagreements over unique battery cell product specifications and mass production milestones. The original deal, struck in 2024, involved supplying between 86,250 and 115,000 tonnes of synthetic graphite over six years starting in 2026. This termination led to a sharp decline in Novonix's shares, dropping as much as 15% in early trading. Despite this, Novonix remains committed to its other partnerships, notably with Panasonic and Volkswagen's PowerCo, and continues to supply samples to numerous potential customers. The company plans to begin mass production at its Riverside facility in Chattanooga next year and is developing a second plant at the same site to jointly produce over 50,000 tonnes annually. While disappointed by Stellantis's decision, Novonix is focusing on expanding its market presence in battery and industrial applications.