Key Highlights

  • NOVONIX and PowerCo entered an amended and restated supply framework agreement that replaces the offtake agreement disclosed on 25 November 2024.
  • The parties will negotiate in good faith the terms of a new offtake, including volume and price, once qualification and industrial certifications are complete.
  • ISO 9001 certification has been achieved, and ISO 14001 certification is expected in 2027.
  • The timing of completing PowerCo’s qualification process will depend on market conditions.

NOVONIX Limited (NASDAQ: NVX, ASX:NVX) announced on 19 October 2026 that it has entered an amended and restated supply framework agreement with PowerCo SE, the battery company of the Volkswagen Group. The agreement replaces the offtake agreement disclosed on 25 November 2024.

What the amended agreement provides

Under the amended and restated agreement, the parties will negotiate in good faith the terms of a new offtake agreement, including volume and price, once NOVONIX completes PowerCo’s qualification process and obtains the applicable industrial certifications. No volume or price was stated in the announcement. ISO 9001 certification has been achieved, while ISO 14001 certification is expected in 2027. The timing of completion of the PowerCo qualification process will depend on market conditions.

The original agreements

NOVONIX and PowerCo entered a non-exclusive Testing and Development Agreement in May 2024 and a binding offtake agreement in November 2024. That agreement provided for a minimum supply of 32,000 tonnes over five years beginning in 2027, subject to agreed milestones relating to final mass-production qualification, compliance criteria and financing commitments. The supply was intended for PowerCo’s gigafactory in St. Thomas, Ontario, which was to start production in 2027. The amended framework replaces that binding minimum supply commitment with an agreement to negotiate.

Reasons given for the change

NOVONIX said the changes reflect the evolution of the electric vehicle and battery markets since 2024, particularly in North America. It cited changes in the timing and pace of electric vehicle adoption, battery production plans and demand forecasts, and the trade, tariff and regulatory environment. The company said these developments have affected battery manufacturers and, in turn, the timing and requirements for suppliers of battery materials.

About NOVONIX

NOVONIX is headquartered in Chattanooga, Tennessee, and produces high-performance synthetic graphite active anode material for lithium-ion batteries. It serves energy storage, grid resilience, national security, defence, electric vehicle and industrial markets. The announcement was authorised for release by the NOVONIX Chairman.