Battery materials and graphite-developed technology company Novonix [ASX:NVX] released exciting news earlier today, claiming a new joint venture agreement that’ll expand market share and opportunities.
NVX will partner with TAQAT, a leading Saudi Arabian energy company, to develop and produce graphite anode materials for electric vehicle and energy storage system batteries in the Middle East and North Africa (MENA) region.
Novonix was rising nearly 13% higher earlier in the day to settle more than 10% up on its last closing price by the afternoon.
NX was worth $1.29 at the time of writing, yet despite the bumper week, its down 79% in the year:
Source: TradingView
Novonix and TAQAT form MENA JV
Graphite battery materials developer Novonix has revealed a new ally in TAQAT, a leading Saudi Arabian energy company and a key contributor to the economic growth and development of the MENA region.
The two companies have today shared their agreement to form a joint venture to produce high-performance graphite anodes for use in electric vehicle (EV) and energy storage system (ESS) applications in Saudi Arabia.
The JV has been in discussion since 2021 and is expected to secure access to precursor material as feedstock for critical battery materials while accessing developing end-use markets for the manufacturing and sale of these products.
Novonix’s leading battery technology and capabilities will help develop a graphite anode materials facility with a capacity of 30,000 tonnes a year, with construction for the facility set for 2024.
Novonix will contribute to production and sales of high-performance graphite anode on a royalty-free basis, and TQAT will hold a 60% equity stake while NVX will hold the other 40%.
Each party has agreed to contribute their nominated share of operating and capital costs for engineering, facility construction, and operation.
NVX said TAQAT is a key contributor to the economic growth and development of the MENA region and will offer strong financial support that will help bring NVX’s first anode materials facility to Saudi Arabia.
Novonix’s CEO Chris Burns commented:
‘I am very excited as to the possibilities that the joint venture presents to both of our companies. The joint venture will leverage NOVONIX’s existing work in North America and will allow us to more quickly scale our operations to extend our geographical reach to the global market. We believe the joint venture will enhance our financial strength and profitability by both driving revenues and accessing cost competitive, quality feedstock for projects outside of North America. NOVONIX’s battery anode manufacturing expertise coupled with TAQAT’s anticipated strong financial support will help bring the first anode materials facility to Saudi Arabia.’
Novonix buoyant on MENA vision
As part of its Vision goals, Saudi Arabian Government is using its investment power to create a more diverse and sustainable economy.
With Saudi’s plans to have 30% electric vehicles on the road by 2030, this places the graphite production facility in a good position to capitalise on the country’s economic needs.
The venture will also be positioned nearby a new manufacturing facility, on the launch of Saudi’s first electric vehicle brand, Ceer.
Another US-based EV manufacturer is also planning to build its first international factory in Saudi Arabia, further strengthening the supply chain and opportunities for NVX.
TAQAT will also be building a petroleum needle coking facility, providing access to a high-quality local precursor material, and offering leverage for Novonix’s existing global and Norther American key feedstock suppliers.
From MENA to Australia
Turning aside from MENA for a moment, let’s think about how the economic trade system in Australia is faring.
The change is all around us, in the wavering global supply chain, on the bare supermarket shelves.
In closing banks, soaring prices, shrinking packets, and a struggling workforce.
Geopolitical analyst Jim Rickards has been mapping it all out, and he’s realised it’s all a part of something bigger.
If you want to know what this all really means click here to learn more.
Regards,
Mahlia Stewart,
For Money Morning
