Samsung signs anode materials supply deal with Australian firm Novonix

Market Expertz   |     December 12, 2019

 

Battery materials player Novonix increased by around 45 percent recently after announcing it will supply lithium-ion battery anode material to Samsung. Novonix will generate approximately 500 tonnes of material to Samsung starting from October 2020, and this is likely to expand in the coming years. The contract is subject to final quality assurance processes; also, the pricing will likely be kept confidential. While Samsung is popular and well-known for its TVs and phones, it also makes batteries for its equipment as well as for electric vehicles; it is a core producer for around 25 projects.

In spite of the impact of the deal, both companies have stayed tight-lipped about the pricing as well as other commercial details with Novonix stating that such information is strictly not to be disclosed. On the other hand, the company did admit that the financial connotations of the deal are “material” with sales under the agreement matching the primary creation capacity presently being installed at the PUREgraphite facility in Tennessee. As per the terms of the deal, Novonix will deliver its proprietary “PUREgraphite Anode” product as part of a multi-phase deal commencing with a preliminary batch of 500 metric tons in the year 2020, with first deliveries predicted to begin by October 2020. Larger volumes will be “measured each year” and will be subject to supply performance, market conditions, and Samsung’s needs, the company further stated. Novonix confirmed that its graphite anode material would be built at its facility in the US and then exported to Samsung’s battery manufacturing facilities in other countries.

Along with the supply agreement, Novonix and Samsung have agreed to explore other opportunities and prospects for the supply of latest graphite anode components for electric vehicle use in Samsung’s products under a parallel development and research collaboration plan. This could possibly lead to Novonix supplying other materials it develops as well as supplemental joint ventures in the energy and materials market.

Join Alert Me Now!

Receive weekly email alerts on new market expertz

Sign Up Today