Novonix Ltd (ASX:NVX) says FCA US LLC, a subsidiary of Stellantis NV, has terminated its offtake agreement with the battery materials group effective immediately after the parties failed to settle “unique battery cell product specifications and milestones for mass production qualification.”
Novonix and Stellantis inked the deal in November 2024 for a minimum 86,250 tonnes and up to 115,000 tonnes of synthetic graphite over six years. Pricing was to track a market-based formula, with final product specifications to be confirmed later. Commercial supply had been targeted to begin on January 1, 2026.
In a statement, Novonix said that while it is “disappointed” by the decision, it remains focused on deliveries to Panasonic and PowerCo and on supplying samples to 15 current and prospective customers across battery and industrial applications.
Focus on other deals
The company’s Riverside facility in Chattanooga is slated to start mass production next year for lead customer Panasonic, positioning it as one of North America’s first large-scale producers of high-performance synthetic graphite for battery, defence and industrial markets. Novonix has also flagged a second Chattanooga plant at the Enterprise South site. Together, the two facilities are expected to provide more than 50,000 tonnes per annum of production capacity.
ASX investors marked the news lower: Novonix shares fell nearly 11% to A$0.505 in early trade on Tuesday.
Stellantis—parent of brands including Jeep, Peugeot, Fiat, Alfa Romeo and Maserati—had been seen as a cornerstone auto-sector customer for Novonix under the now-terminated arrangement.