The two companies are committing to a target of 86,250 to 115,000 tonnes of synthetic graphite offtake beginning in 2026

Stellantis has a new battery materials supplier with Canadian roots.

The American automaker is tapping Novonix, a battery technology company that spun out of Dalhousie University’s Jeff Dahn Research Group in 2013, to supply its battery cell partners in North America with synthetic graphite.

“We are excited to have Stellantis’ commitment, now as our largest customer, to support their North American EV growth plans,” says Chris Burns, CEO of Novonix, in a press release announcing the binding offtake agreement.

Novonix began as a small startup in a Halifax suburb. It is now headquartered in Australia with offices and facilities in Canada and the United States.

The Novonix Riverside facility in Chattanooga, Tennessee will produce the synthetic graphite. Stellantis will buy 86,250 to 115,000 tonnes of the graphite over a six-year term, beginning in 2026.

“This contract allocates the remainder of our available volumes at our Riverside facility and a portion of volumes to be produced at our planned greenfield facility,” adds Burns.

Synthetic graphite

The key difference between natural and synthetic graphite is evident in the names: one occurs in nature, the other comes from a lab.

At a more molecular level there are some exciting differences for battery makers. For one, synthetic graphite, while more expensive to make than naturally occurring graphite, is far more energy dense.

This is critical for creating the best battery chemistry.

Developing synthetic graphite has been a primary focus of Novonix for a few years.

Last summer Electric Autonomy visited Novonix to get a tour of its Bedford, Nova Scotia labs. During that visit Novonix spoke about its work with the research, production and development of its own synthetic graphite. It hinted at some breakthroughs the company had that could have major implications for the EV industry.

“We’ve looked and said, ‘This industry needs to grow into North America,'” said Burns, at the time about the graphite industry that was almost exclusively anchored in China.

“We need to be able to do everything here.”

Novonix, Stellantis finalizing details

What it will cost Stellantis to purchase made-in-North-America synthetic graphite from Novonix remains unknown — as does exactly where the graphite will go.

But there are options.

Stellantis is near to completing its $5-billion Windsor, Ontario battery manufacturing factory in partnership with LG Energy Solution. That factory is an asset of the two company’s joint venture, NextStar Energy; and, last month, began battery module production.

As well, Stellantis has two other battery factories in development with Samsung SDI in Indiana.

As for cost, “The price…will be based on an agreed upon market-based price formula,” reads company materials.

Novonix has just over a year to finalize its synthetic graphite process (including meeting compliance requirements) before its set to begin deliveries to Stellantis on January 1, 2026.