Finance
Automaker Stellantis scraps supply deal with Australia's Novonix
Published by Global Banking & Finance Review®
Posted on November 4, 2025
2 min readLast updated: January 21, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on November 4, 2025
2 min readLast updated: January 21, 2026
Stellantis terminates its supply deal with Novonix due to product disputes, causing a significant drop in Novonix shares and impacting future graphite supply plans.
(Reuters) -Australia's Novonix said on Tuesday that a unit of automaker Stellantis had terminated its offtake agreement with the battery materials supplier, citing an inability to agree on product specifications.
Shares of the company fell as much as 15% to A$0.480, hitting its lowest level since October 3. The stock is eyeing its fourth consecutive session of losses.
The agreement, announced in November 2024, had outlined a minimum supply of 86,250 tonnes of battery-grade graphite over six years, with a target volume of up to 115,000 tonnes.
The material was supposed to be shipped from Novonix's Riverside facility in Chattanooga, Tennessee, to Stellantis' cell manufacturing partners in North America.
The Brisbane-headquartered firm said it was "disappointed" by Stellantis' decision but remains focused on its commitments to other clients, including Panasonic Energy and Volkswagen's battery unit PowerCo.
Stellantis, the maker of Jeep, Fiat and Chrysler, among others, did not immediately respond to a Reuters request for comment.
The company is also continuing to provide samples to 15 current and potential customers across battery and industrial applications.
Last year, Novonix clinched a conditional $754.8 million loan commitment from the U.S. government to partially fund a proposed graphite plant in Tennessee.
At full capacity, the proposed facility in Chattanooga is expected to produce about 31,500 metric tons a year of synthetic graphite, which can support the production of lithium-ion batteries for about 325,000 EVs each year, it had said.
(Reporting by Rajasik Mukherjee in Bengaluru; Editing by Alan Barona)
Battery-grade graphite is a high-purity form of graphite used in the production of lithium-ion batteries, essential for electric vehicles and energy storage systems.
Stock performance refers to the change in the price of a company's shares over time, often influenced by market conditions, company performance, and investor sentiment.
Cell manufacturing partners are companies that collaborate to produce battery cells, which are crucial components in electric vehicles and energy storage systems.
A conditional loan commitment is a promise from a lender to provide a loan, contingent upon certain conditions being met, such as the completion of due diligence or the borrower meeting specific criteria.
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