NOVONIX Limited (ASX: NVX) has reached conditional agreement to supply lithium-ion battery anode material to leading global lithium-ion battery manufacturer Samsung SDI.
The company’s Managing Director, Philip St Baker, said the agreement is NOVONIX’s first for its recently launched “PUREgraphite Anode” product and positions NOVONIX as a new supplier in this specialised battery materials market.
Mr St Baker said the agreement follows more than six months of technical evaluation of PUREgraphite Anode material and is intended as a first phase of a long-term arrangement.
Under the agreement NOVONIX will supply Samsung SDI an initial volume of 500 metric tons in 2020, consistent with NOVONIX’s currently being installed production capacity, with first deliveries forecast to commence in October 2020.
Larger volumes will be considered each year and will be subject to supply performance by NOVONIX, market conditions and Samsung SDI overall requirements.
NOVONIX’s PUREgraphite anode material will be manufactured at a facility in the US and will be exported to Samsung SDI battery manufacturing facilities in other countries.
Signing of the purchasing agreement for 500 metric tons in 2020 is subject to Samsung SDI’s required quality assurance processes and audit of supplier processes fulfilment.
Mr St Baker said NOVONIX will now accumulate initial inventory prior to expected first delivery in October 2020.
NOVONIX is extremely honored to supply Samsung SDI and we look forward to supporting Samsung SDI in delivering higher performance batteries to the global market,” he said.
Samsung SDI and NOVONIX will also explore opportunities for the supply of new graphite anode materials for Electric Vehicle use in Samsung SDI products under R&D collaboration.
