By M. Marin
NASDAQ: NVX
READ THE FULL NVX RESEARCH REPORT
Rapidly rising energy demand challenges aging, often inadequate power grid & drives need for storage technologies
Novonix (NASDAQ: NVX) is building a North American vertically integrated synthetic graphite supply chain to support multiple sectors, as it diversifies its product portfolio in addition to supplying material to the battery sector to encompass additional key verticals. The expansion beyond the battery space is expected to enable NVX to further allocate production from its Chattanooga, Tennessee, facility. The facility is on track to become the first large-scale synthetic graphite manufacturing plant in North America, according to NVX, which believes it has first mover advantage as an early manufacturer of synthetic graphite in North America.
Energy storage installations projected to average ~11% annual growth through 2034
There are multiple factors driving the anticipated growth in demand for synthetic graphite, including installations of electric storage systems (ESS), among others. Electricity and/or other energy sources such as solar energy are used to charge energy storage systems, which then supply electricity as needed and to support electric power grids. Installations of energy storage increased 43% year-over-year in 2025, according to Reuters, citing Wood Mackenzie, and are projected to grow at an average annual rate of nearly 11% through 2034.
Total demand for energy is projected to rise by as much as 25% by 2030 and nearly double by 2050, according to the U.S. Department of Energy (DOE), in turn challenging an aging and often inadequate power grid. Deploying storage technologies is one of the solutions the DOE has outlined. Key uses and benefits of ESSs, according to the U.S. Energy Information Administration (EIA), include balancing grid supply and demand and improving quality and reliability, arbitraging peak / non-peak demand pricing, storing and smoothing renewable electricity generation and power, backing-up power, as well as integrating with microgrids. ESSs are being integrated into microgrids that supply a relatively small geographic area or customer base to provide some or all of the uses and benefits of electricity storage listed above. Domestic demand for power rising at unprecedented rates, reflecting energy-intensive AI data centers, manufacturing reshoring, electric vehicles (EVs), and other factors.
As the company moves its development and commercialization strategy forward, NVX provided more than 100 samples of synthetic graphite to 15 customers and prospects in 2025 for battery, energy storage, and industrial applications and continues to deliver additional samples to prospective industrial customers. The company has already signed upfront commitments for a substantial amount of production capacity with offtake agreements with major industry players, including Panasonic.
Recent BTS sale enables focus on synthetic graphite business, while maintaining exposure to the potential upside of cathode business through retention of 15% stake
To focus on advancing its synthetic graphite business, the company completed the previously announced sale of NOVONIX Battery Technology Solutions (BTS) to former CEO Dr. Chris Burns. NVX receives a 15% equity stake in the developing cathode business, which has rebranded as Dryve Battery Materials Inc. BTS was not a core business for the company. The divestiture therefore, was consistent with the company’s objective to focus on the synthetic graphite business, while still retaining exposure to the potential upside if, as management expects, the cathode business progresses.
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