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NOVONIX to receive $103 million in tax credits to produce battery materials in Tennessee

April 10, 2024

NOVONIX Limited, a battery materials and technology company, has been selected to receive a US$103 million tax credit under the Qualifying Advanced Energy Project Allocation Program (the “48C program”), as recommended by the U.S. Department of Energy.

This tax credit will support the production of critical battery materials at NOVONIX’s Riverside facility in Chattanooga, Tennessee. The 48C tax credit, originally enacted under the American Recovery and Reinvestment Act of 2009, was revitalized with an additional US$10 billion in funding under the Inflation Reduction Act of 2022. The 48C program encourages clean energy property manufacturing and recycling, industrial decarbonization, and critical materials processing, refining, and recycling. Its goal is to create high-quality jobs, reduce industrial emissions, and strengthen U.S. domestic production of vital clean-energy products and critical materials.

Under the Inflation Reduction Act, a qualifying advanced energy project credit can be monetized through its sale for cash, in addition to using this tax credit to offset income tax liability. The full realization of this tax credit is subject to the satisfaction of the requirements set forth in Section 48C of the Internal Revenue Code and operational and employment plans set out in the application to the Internal Revenue Service. NOVONIX has a two-year period to satisfy these requirements and claim the tax credit.

NOVONIX was selected as one of the first beneficiaries of the highly competitive program. The company has previously been awarded a US$100 million grant for this facility by the DOE’s Office of Manufacturing & Energy Supply Chains, enabled by the Bipartisan Infrastructure Law, and continues to seek funding support under the DOE Loan Programs Office’s Advanced Technology Vehicles Manufacturing Program.

NOVONIX is a battery technology company that is transforming the global lithium-ion battery industry with innovative, sustainable technologies, high-performance materials, and more efficient production methods. The company manufactures industry-leading battery cell testing equipment, is expanding its high-performance synthetic graphite anode material manufacturing operations, and has developed an all-dry, zero-waste cathode synthesis process. Through advanced R&D capabilities, proprietary technology, and strategic partnerships, NOVONIX has established a significant position in the electric vehicle and energy storage systems battery industry.