NOVONIX (NASDAQ:NVX, ASX:NVX), a prominent figure in battery materials and technology, has reached a significant milestone with the completion of an independent engineering assessment of its Riverside production facility located in Chattanooga, Tennessee. The assessment, conducted by global engineering and consulting firm Hatch Ltd, covered various aspects including operations evaluation, project execution, and financial model assumptions, along with considerations for the graphite market, production technology, environmental impact, feedstock, and supply agreements.

NOVONIX is on track to achieve its initial 3,000 tonnes per annum (tpa) commercial production capacity at the Riverside facility by the end of 2024, with all primary production equipment either in place or ordered. The company has committed to keeping stakeholders updated on production milestones at the Riverside facility.

Dr. Chris Burns, CEO of NOVONIX, expressed confidence in the company's progress, stating, "The completion of the independent engineering review provides us with a high degree of confidence as we advance our overarching plans towards production and deliveries from Riverside." He further emphasized the milestone as reinforcing their position as pioneers in localizing lower-emissions synthetic graphite supply in North America.

In conjunction with the independent engineering assessment, NOVONIX has updated its production economics estimates, considering the significant government support it has received. This includes a US$100 million grant from the U.S. Department of Energy (DOE MESC grant) and a US$103 million tax credit (48C tax credit). The company projects operating margins in the range of 23-30% at the targeted capacity for the Riverside facility, with operating costs estimated between US$6-8/kg and an anticipated selling price of US$7-10/kg. These estimates account for the impact of the DOE MESC grant and the 48C tax credit, with further consideration of the potential benefits from the Section 45X Advanced Manufacturing Tax Credit program.

NOVONIX sees the completion of the independent engineering review and the receipt of government support as affirmations of its commitment to localizing the battery supply chain and its leadership in the synthetic graphite market. The company believes its Riverside facility is well-positioned for success and aims to lead through innovation and sustainability in battery materials manufacturing.