Brisbane, 25 January 2022 AEST (ABN Newswire) – NOVONIX Limited (ASX: NVX) (EN:GC3) (OTCMKTS: NVNXF), an advanced battery technology and materials company, today announced that it has signed a letter of intent to enter into investment and supply agreements with KORE Power, Inc. (“KORE Power” ), part of an ongoing joint effort to strengthen the North American battery supply chain, from key materials to manufacturing cells and packs for electric vehicles and energy storage systems.
Pending board approvals of both companies and execution of definitive documentation, NOVONIX will acquire an approximate 5% stake in KORE Power and become the exclusive supplier of graphite anode materials for the KORE Power’s large-scale battery cell manufacturing plant in the United States. intent is non-binding and subject to execution of definitive documents and other customary terms. If approved, these deals are expected to close in early 2022.
NOVONIX and KORE Power began working together in 2019 when the parties entered into test agreements to focus on the validation and development of KORE Power’s battery cell technologies. Through this agreement, the parties 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 meet local market needs for battery cells and systems, and this facility will require nearly 12,000 tons per year of graphite anode material when fully operational. .
“NOVONIX and KORE Power have actively worked together to improve battery technology using NOVONIX’s proprietary cell testing technologies, and these agreements deepen our longstanding collaboration,” said Dr. Chris Burns, Co-Founder and CEO. by NOVONIX. “Through our partnership, we have shown that KORE Power’s cell performance is comparable to that of global Tier 1 cell suppliers, and we are excited to continue to strengthen this technology. We are reducing reliance on foreign materials and strengthen the United States’ position as a leading global storage supplier by supplying high-capacity, long-life synthetic graphite anode material to a leading domestic developer.”
“This partnership represents a natural fit for two companies committed to building a North American battery industry and facilitating a sustainable future,” said Lindsay Gorrill, co-founder and CEO of KORE Power. “The growing US market is leading the global transition to grid-scale battery systems, and with the support of NOVONIX, we are motivated to work towards building a secure national supply chain for storage. Energy.
Under the proposed securities purchase agreement, NOVONIX would agree to purchase 3,333,333 common shares of KORE Power (“Shares”) at an issue price of $7.50 per share. The aggregate offer 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 volume-weighted average price over 20 days of NOVONIX. Actions on the ASX ending three days before the closing date. Concurrent with the proposed investment, NOVONIX and KORE Power will enter into a supply agreement on mutually agreed terms. The cash component of the offer price will be funded from NOVONIX’s existing cash reserves. NOVONIX Shares which are issued as part of the purchase price of the Shares will be issued to KORE Power within the limits of NOVONIX’s existing placement capacity under the ASX Listing Rules.
About KORE Power
KORE Power, Inc., is the leading US developer of battery cell technology for the clean energy industry. With customers in the energy storage, e-mobility, utility, industrial and mission-critical markets, KORE Power provides the backbone of decarbonization across the globe. Powered by its battery management system, KORE Power designs and manufactures its own NMC and LFP cells, modules and VDA packs. With the construction and operation of its large-scale battery cell manufacturing plant in the United States, KORE is positioned to operate at a capacity of 12 GWh per year. The facility (the “KOREPlex”) will operate with net zero carbon emissions through strategic partnerships and solar and storage cogeneration.
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 economic expansion green, KORE Power prides itself on offering a functional solution to real-world problems and meeting market demand to deliver a carbon-free future. The KOREPlex is expected to arrive in Buckeye, Arizona and be the anchor for sustainable Valley development by the end of 2023.
About NOVONIX Limited
NOVONIX Limited (ASX: NVX) (EN:GC3) (OTCMKTS: NVNXF) is an integrated developer and supplier of high-performance materials, equipment and services to the global lithium-ion battery industry with operations in the United States and Canada and sales in more than 14 country. NOVONIX’s mission is to support the global deployment of lithium-ion battery technologies for a cleaner energy future.