Proposed investment and supply agreements will
further the localization of the U.S. battery supply chain
NOVONIX to be exclusive supplier of
high-performance graphite anode materials to KORE Power’s U.S.
facility
NOVONIX Limited (ASX: NVX, OTC: NVNXF) (“NOVONIX”), an advanced
battery materials and technology company, today announced the
execution of a letter of intent to enter into investment and supply
agreements with KORE Power, Inc. (“KORE Power”), 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.
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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.”
Under the proposed Securities Purchase Agreement, NOVONIX would
agree to purchase 3,333,333 shares of KORE Power common stock
("Shares") at an issue price of $7.50 per share. The aggregate
offering price for the Shares will be paid in a combination of 50%
cash and 50% ordinary shares of NOVONIX (“NOVONIX Shares”), at a
valuation equal to 95% of the 20-day volume weighted average
trading price of NOVONIX Shares on the ASX ending three days prior
to the closing date. Simultaneously with the contemplated
investment, NOVONIX and KORE Power shall enter into a supply
agreement on mutually agreed terms. The cash component of the
offering price will be funded from NOVONIX's existing cash
reserves. NOVONIX Shares which are issued as part of the purchase
consideration for the Shares, will be issued to KORE Power within
NOVONIX's existing placement capacity under the ASX Listing
Rules.
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 mt/year by 2025 and 150,000 mt/year
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, KORE and each of their respective industries 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 timetable for
completing the potential transaction, the ability to complete the
potential transaction, the expected benefits of the potential
transaction (including future opportunities) and any other
statements regarding each company’s 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.
Neither NOVONIX nor KORE 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. Neither company may 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/20220124005781/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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