NOVONIX and PowerCo amend supply agreement to a qualification-led pathway
NOVONIX Limited (NASDAQ: NVX, ASX: NVX) has entered into an amended and restated supply framework agreement with PowerCo SE, the battery company of the Volkswagen Group, announced on 19 October 2026. The NOVONIX PowerCo supply agreement replaces the offtake agreement disclosed on 25 November 2024.
Under the new framework, 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. The relationship continues, but the volume and price terms are now open and have not been disclosed.
Mike O’Kronley, Chief Executive Officer of NOVONIX
“The revised agreement provides a practical path forward that recognizes current market conditions…”
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What changed from the 2024 offtake agreement
The amended arrangement moves from a binding offtake agreement to a supply framework agreement. The 32,000 tonne minimum supply is no longer a committed figure, and the source does not disclose a replacement volume or price.
| Term | Original (Nov 2024) | Amended and restated |
|---|---|---|
| Structure | Binding offtake agreement | Supply framework agreement |
| Volume | Minimum supply of 32,000 tonnes over five years beginning in 2027 | To be negotiated in good faith |
| Price | Not specified in the announcement | To be negotiated in good faith |
| Conditions | Agreed milestones relating to final mass-production qualification, compliance criteria, and financing commitments | Completion of PowerCo’s qualification process and applicable industrial certifications |
The background to the agreement runs across two stages:
- May 2024: NOVONIX and PowerCo entered into a non-exclusive Testing and Development Agreement.
- November 2024: The parties entered into a binding offtake agreement.
The original supply was intended for PowerCo’s St. Thomas, Ontario gigafactory, which was to commence production in 2027.
Why the agreement was reshaped: market conditions
The company said the changes reflect the evolution of the electric vehicle and battery markets since the original agreement was executed in 2024, particularly in North America. These include changes in the timing and pace of electric vehicle adoption, battery production plans and demand forecasts, and the trade, tariff, and regulatory environment.
According to the announcement, these developments have affected battery manufacturers and, in turn, the timing and requirements for suppliers of battery materials. The source does not attribute the reset to any company-specific factor.
For readers new to the sector, two terms matter here:
- Offtake agreement: A contract under which a buyer agrees to purchase a supplier’s future output.
- Supplier qualification: A testing and approval process a customer runs before it places orders with a materials supplier.
Qualification and certification therefore sit ahead of any large-volume order under this framework.
Qualification, certifications and what comes next
The announcement sets out the path to a new offtake agreement:
- ISO 9001 certification: achieved.
- ISO 14001 certification: expected in 2027.
- Completion of PowerCo’s qualification process: timing will depend on market conditions, and no date was given.
- Good-faith negotiation of the terms of a new offtake agreement (including volume and price) once NOVONIX completes qualification and obtains the applicable industrial certifications.
Mr O’Kronley said the company’s focus is on “successfully completing qualification, demonstrating our ability to produce high-performance synthetic graphite at commercial scale, and building a competitive domestic supply base for this critical battery material.”
NOVONIX is headquartered in Chattanooga, Tennessee, and produces high-performance synthetic graphite AAM for lithium-ion batteries. It serves energy storage, grid resilience, national security, defense, electric vehicles, and industrial markets, and states that it is helping to build a resilient North American battery materials supply chain.
Investor watch-points include the expected 2027 ISO 14001 certification, progress through PowerCo’s qualification process, and any future offtake terms. The announcement does not provide financial figures for the amended agreement.
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