Novonix (ASX:NVX) has entered into an exclusive licensing agreement with long-time technology partner, Harper International Corporation.
The agreement grants Novonix the rights to Harper's continuous, induction-based graphitisation furnace technology, which is crucial for producing synthetic graphite anode material for lithium-ion batteries.
The new agreement follows a strategic partnership formed in December 2020, where Novonix committed to purchasing systems from Harper for thermal processing in the battery anode market.
Under the licensing terms, Novoix will make an initial payment within 12 months to secure exclusive rights to develop the technology for use in graphite production.
Further payments, upon meeting performance objectives, will expand the agreement to allow Novonix to build equipment using the licensed technology either internally or through authorised sublicensees.
Novonix’s Riverside facility in Chattanooga, Tennessee, is set to become North America’s first large-scale production site for high-performance synthetic graphite.
The facility, slated for commercial production later this year, aims to meet current customer demands with plans to scale output to 20,000 tonnes annually.
The company has already secured financial backing, including a $100 million grant from the US Department of Energy and a $103 million investment tax credit for the Riverside site.
Additionally, Novonix received a conditional commitment for a direct loan of up to $754.8 million for a new production facility in Chattanooga.
The exclusive license, valid for up to seven years, will allow the company to use and sublicense the technology for thermal graphite production for battery anodes, with certain exceptions.
After this period, Novonix will retain a perpetual, non-exclusive license. If Novonix fails to meet payment deadlines, the license will terminate.