Novonix: Betting on Graphite Supply Security

Novonix, a North American maker of synthetic graphite, was striving to anchor itself in the fast-growing electric vehicle (EV) battery supply chain while facing the volatile policy and geopolitical currents of 2025. Backed by a US Department of Energy loan and multiyear deals with automakers, it planned a large plant in Chattanooga, Tennessee, to chip away at China’s dominance in graphite. However, the project’s long-term viability hinged on a predictable policy environment that included adequate tariff protection, continuity of production credit, and EV manufacturers meeting the sourcing requirements of the Inflation Reduction Act (IRA). Amid intensifying polarization over tariffs and the future of the IRA, Novonix’s leadership had to decide whether to continue to bet on US-based expansion, hedge policy risk through international diversification, or prioritize strategic partnerships with automakers.