January 27 (Renewables Now) - Australian advanced battery materials company Novonix Ltd (ASX:NVX) this week announced a letter of intent with US battery cell technology developer Kore Power Inc that envisages an equity investment and is expected to beef up the battery supply chain in North America for both electric vehicles (EVs) and energy storage systems.
The letter of intent calls for Novonix to acquire a stake of about 5% in Kore Power and to become the exclusive supplier of graphite anode materials to the latter's planned 12-GWh battery cell manufacturing facility in Buckeye, Arizona.
The proposed deal will see Novonix buy 3.33 million shares of Kore Power at USD 7.5 (EUR 6.65) per share, corresponding to a total investment of about USD 25 million. It will pay for the shares with a 50:50 mix of cash and stock.
The companies, which have been collaborating since 2019, expect to be able to close these agreements in early 2022.
“We are reducing the reliance on foreign materials and furthering the United States’ position as a global energy storage leader by providing high-capacity long-life synthetic graphite anode material to a leading domestic developer,” commented Novonix co-founder and chief executive Chris Burns.
(USD 1 = EUR 0.887)