NOVONIX secures strategic partner to deliver fully domestic anode materials
NOVONIX Limited has announced a strategic partnership with ACP Technologies, LLC (ACPT) through a signed memorandum of understanding (MOU), advancing its push to build a resilient, end-to-end domestic battery materials supply chain in North America. The collaboration is designed to allow NOVONIX to offer customers a completely domestic pitch coated synthetic graphite anode active material (AAM), representing a new product class for the company. The MOU is non-binding and does not commit either party to proceed with any project or enter into a definitive agreement.
ACPT is a U.S.-based technology company that develops proprietary processes for converting low-value petroleum-derived feedstocks into engineered carbon precursors, with its patented processes used to produce high-value pitch material. The company has participated in numerous U.S. government programs across the defence and energy sectors, underscoring its strategic relevance to domestic critical materials supply chains.
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What ACPT brings to the table — and why it matters now
ACPT’s core capability lies in converting low-value petroleum-derived feedstocks into engineered carbon precursors using patented processes, producing high-value pitch material that serves as a critical domestic input for battery manufacturing and advanced materials applications.
The gap ACPT addresses is significant. Currently, there are limited viable U.S.-based alternatives for anode materials, and ACPT is working to address this directly. Its track record across U.S. government defence and energy programs lends strategic credibility to the collaboration.
Under the MOU, the parties intend to pursue several projects across the following areas:
- Synthetic graphite AAM development
- Mass production process development
- Proprietary technology advancement
- Performance improvement of NOVONIX’s existing AAM using ACPT’s current offerings
Understanding synthetic graphite anode materials
In a lithium-ion battery, the anode is the negative electrode that stores and releases lithium ions during charging and discharging cycles. The anode active material (AAM) is the substance within the anode that performs this function, and its quality directly affects battery performance, longevity, and safety.
Synthetic graphite is manufactured from carbon-based raw materials under controlled, high-temperature conditions. Compared to natural graphite, which is mined and processed, synthetic graphite offers more consistent purity, tighter performance specifications, and is preferred in applications where reliability is non-negotiable.
Pitch coating adds a layer of carbon to the surface of graphite particles. This improves particle surface chemistry, enhances fast-charging performance, and enables the material to meet the demands of more exacting applications.
For investors, the ability to source 100% domestically carries meaningful strategic implications. It reduces exposure to geopolitical supply chain risks, particularly given that graphite supply chains are currently dominated by non-domestic, primarily Chinese, sources. A fully domestic AAM also positions NOVONIX favourably under U.S. energy independence and critical materials priorities. Importantly, it opens access to new end markets, including drone and military applications, as well as enhanced fast-charging commercial use cases.
US tariffs on Chinese graphite now exceed 160% on anode active materials, a structural shift that substantially raises the cost floor for any battery manufacturer still sourcing from Chinese suppliers and reinforces the commercial logic behind fully domestic alternatives.
What the partnership is designed to deliver
Materials produced through the collaboration are expected to support process validation and customer sampling, further improve performance for new markets, and advance the qualification and commercialisation of new domestic feedstocks and precursor materials for AAM production. These represent near-term, tangible intended outputs of the partnership, though they remain subject to the progression of definitive agreements.
Harrison Kreafle, VP of Technology Development, NOVONIX
“As we scale our U.S. manufacturing footprint, strategic relationships like this are essential… ACPT brings a differentiated, domestic solution that elevates product performance and strengthens the U.S. supply chain.”
Kevin Mulrenin, President, ACPT
“…”By combining ACPT’s ability to convert petroleum-derived feedstocks into tailored carbon precursors with NOVONIX’s expertise in synthetic graphite and anode materials, we believe we can accelerate the development and commercialization of a competitive North American supply chain for battery-grade graphite.”
Investment thesis — domestic supply chain as a strategic differentiator
NOVONIX’s broader strategic positioning centres on building a North American battery materials supply chain aligned with U.S. energy independence and defence priorities. The company serves energy storage, electric vehicle, industrial, and defence markets from its Chattanooga, Tennessee headquarters. A fully domestic pitch coated synthetic graphite AAM is particularly significant for defence applications, including military drones.
The Section 48C tax credit certification of US$103 million for NOVONIX’s Riverside facility in Chattanooga provides a transferable, near-term receivable that reduces reliance on dilutive equity raises as the company advances its domestic manufacturing buildout.
The layered investment significance of this MOU includes:
- Expands NOVONIX’s product portfolio with a new fully domestic AAM product class
- Opens access to defence and military drone markets
- Reduces supply chain exposure to non-domestic, primarily Chinese, graphite sources
- Advances NOVONIX’s fast-charging material performance credentials
- Positions the company to benefit from ongoing U.S. government critical materials funding and procurement priorities
It is important to note that the MOU provides a framework only. It is non-binding, does not commit either party to proceed with any project, and there is no assurance that the parties will reach a definitive agreement, or as to the timing, terms, or scope of any future collaboration. The strategic intent is clear, but definitive agreements are yet to be negotiated.
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