US energy powerhouse Phillips 66 has entered into an agreement to acquire a 16% stake in Brisbane-based battery metals specialist NOVONIX Limited (ASX: NVX).
This strategic investment enables Phillips 66 to directly support the development of the U.S. battery supply chain,” said Greg Garland, Chairman and CEO of Phillips 66.
“It advances our commitment to pursue lower-carbon solutions while leveraging our leadership position and expertise in the specialty coke market and supporting NOVONIX’s emerging position in U.S.-based anode production.”
Phillips 66 is a leading global manufacturer of specialty coke, a key precursor in the production of batteries that power electric vehicles, personal electronics, medical devices and energy storage units.
NOVONIX, a leading producer of synthetic graphite, processes specialty coke to make high- performance anode material for these batteries. The investment supports the development of a fully domestic supply chain for sales into the U.S. electric vehicle and energy storage system markets.
“We’re excited by Phillips 66’s vision for a sustainable future and confidence in our business plan and management team,” said NOVONIX CEO and co-founder Chris Burns, Ph.D. “Phillips 66’s investment will provide us with the capital needed to support growth and ongoing R&D as we continue to scale our synthetic graphite production and develop new technologies for higher-performance energy storage applications. We look forward to continuing to build our relationship with Phillips 66 as both a strategic partner and investor.”
Under the terms of the agreement, Phillips 66 will subscribe for 77,962,578 ordinary shares of NOVONIX for a total purchase price of US$150 million. Additionally, Phillips 66 will nominate one director to NOVONIX’s Board of Directors.
The transaction is subject to approval by NOVONIX shareholders, as well as other customary closing conditions. This investment is driven by Phillips 66’s Emerging Energy organization, which is tasked with building a lower-carbon business platform.
NOVONIX’s anode materials business is based in Chattanooga, Tennessee, where it is increasing capacity to produce 10,000 metric tons per year of synthetic graphite by 2023. The investment by Phillips 66 will support a capacity expansion of an additional 30,000 mt/year, which is expected to be completed by 2025.