04:34 AM EST, 11/25/2024 (MT Newswires) -- NOVONIX ( NVX ) said Sunday it signed a binding offtake agreement for a minimum of 32,000 tonnes of synthetic graphite material with PowerCo.

The material will be supplied to PowerCo for battery cell production over five years starting in 2027 under an agreed-upon pricing structure. Financial details were not disclosed.

The company said its Riverside facility is slated to start commercial production in 2025, with plans to grow output to 20,000 tonnes per annum.

The company also plans to build a second production facility in southeastern US that will have an initial capacity of 30,000 tonnes per annum and possibly expand to 75,000 tonnes per annum.

NOVONIX's ( NVX ) current plans call for total production to increase to at least 150,000 tonnes per annum, the company said.

The agreement is dependent on NOVONIX ( NVX ) achieving certain milestones and securing financing commitments for the production facilities.