NOVONIX To Supply Samsung SDI and Pursue R&D Collaboration
Brisbane, Dec 9, 2019 AEST (ABN Newswire) - NOVONIX Limited (
ASX:NVX) (GC3:FRA) is very pleased to announce that it has reached conditional agreement to supply lithium-ion battery anode material to SAMSUNG SDI, an international manufacturer of lithium-ion batteries.
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.
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 its facility in the United States 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 fulfillment.
Pricing is commercially sensitive and strictly confidential between the parties.
Financial implications for NOVONIX are material with sales under this agreement matching the initial production capacity currently being installed at the PUREgraphite facility in Tennessee.
NOVONIX will accumulate initial inventory prior to expected first delivery in October 2020.
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.
NOVONIX Managing Director, Philip St Baker, said "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."
ABOUT SAMSUNG SDI
Samsung SDI is a global leader in the manufacturer of the rechargeable batteries for IT industry, automobiles, and energy storage systems (ESS), as well as cutting-edge materials used to produce semiconductors, displays, and solar panels.
Samsung SDI has been selected as a core battery supplier for over 30 vehicle electrification projects and the first vehicles already on the road with Samsung SDI batteries include the Fiat 500e (EV), BMW i3 (EV), BMW i8 (PHEV) and as well as many other electrified models of OEMs.
Samsung SDI is a global leader in energy storage solutions providing a broad range of solutions from KWh sizes for residential to MWh sizes for large scale utility.
Samsung SDI is at the forefront of the effort to create energy and cutting-edge materials that enrich the quality of life around the world.
About NOVONIX Limited
NOVONIX Limited (ASX:NVX) (FRA:GC3) (OTCMKTS:NVNXF) is an integrated developer and supplier of high-performance materials, equipment and services for the global lithium-ion battery industry with operations in the USA and Canada and sales in more than 14 countries. NOVONIX's mission is to support the global deployment of lithium-ion battery technologies for a cleaner energy future.
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