Novonix (NVX) Investor Day 2024 summary

Strategic direction and business focus

• Emphasizing localization of battery material supply chains, especially graphite, to reduce reliance on China and support North American electrification and energy storage markets.

• Scaling anode materials production capacity to 150,000 tpa, with Riverside targeting 20,000 tpa and a new Greenfield facility planned for 30,000 tpa by 2028, expandable to 75,000 tpa.

• Secured binding offtake agreements with Stellantis, PowerCo, and Panasonic, covering all Riverside plant output and representing ~42% of North American forecasted demand for 2030.

• Prioritizing development and commercialization of patented all-dry, zero-waste cathode synthesis technology, with pilot line operational and partnerships in place, aiming for licensing in 2025.

• Strategic partnerships and investments from LG Energy Solution, Phillips 66, and government grants/tax credits underpin growth and capital formation.

Financial guidance and capital planning

• Targeting $7–$10/kg sales prices for graphite materials, with operating costs of $6–$8/kg at 20,000-ton scale, aiming for 23–30% margins at steady state.

• Government incentives, including a $100M DOE grant, $103M tax credit, and Section 301 tariffs, significantly enhance project economics and reduce capital requirements.

• Completed a capital raise of A$52.1 million (~US$34 million) to fund Riverside expansion, with proceeds allocated to equipment installation and commissioning for 3K tpa by H1 2025.

• Incremental investment approach at Riverside de-risks future greenfield expansion, with plans for a 30,000-ton facility by 2028 and potential to reach 75,000 tons.

• Ongoing applications for additional government loans and tax credits to support future growth phases.

Operational milestones and execution

• Riverside’s 3,000-ton line to be operational in the first half of 2025, with initial deliveries to Panasonic targeted for late 2025.

• Full plant build-out to 20,000 tons aligned with offtake agreements, with qualification and quality audits required for contract fulfillment.

• Modular, continuous production technology enables rapid scaling and transfer of engineering to new sites.

• Focused on demonstrating profitability at Riverside and leveraging learnings to improve efficiency in future projects.

• Ongoing product qualification and ramp-up with Tier 1 customers, with additional supply agreements targeted as production scales.