Shares in battery technology company Novonix experienced a significant drop in early trading today after the company announced the termination of its offtake agreement with FCA US, a subsidiary of Stellantis. The termination, effective immediately, stems from the companies’ inability to reach a consensus on battery cell specifications and mass production milestones. Novonix is a battery technology and materials company focused on enabling the next generation of energy storage. The company develops and manufactures high-performance battery materials, equipment, and services.
The agreement, initially inked in November 2024, encompassed the supply of 86,250 tonnes of battery materials, with a targeted increase to 115,000 tonnes over a six-year period. Pricing was to be determined via a market-based formula, with commercial supply anticipated to commence on 1 January 2026. Stellantis owns several prominent car manufacturers, including Citroen, Dodge, Jeep, Maserati, Peugeot, and Ram Trucks.
Despite the setback, Novonix affirmed its commitment to fulfilling existing supply agreements with Panasonic and PowerCo. The company also stated it would continue providing samples to 15 current and prospective clients spanning both battery and industrial sectors.
Novonix’s Riverside facility in Tennessee is on track to initiate mass production of high-performance synthetic graphite in the coming year. Plans for a second plant at Enterprise South are also underway, which would give the company a combined production capacity exceeding 50,000 tonnes annually. By 10.27am AEDT, Novonix shares had plummeted by 11.5 per cent following the announcement.
