By Rhiannon Hoyle

Shares in Novonix fell by 15% after the company said automaker Stellantis abandoned a deal to buy synthetic graphite from its operations in Tennessee.

Novonix said the companies "were unable to agree upon the unique battery cell product specifications and milestones for mass production qualification." Stellantis terminated its so-called offtake or supply agreement with the company effective immediately, Novonix said in a statement on Tuesday.

A spokesperson for Stellantis couldn't immediately be reached.

Shares in Australia-listed Novonix fell as low as 48 Australian cents, equivalent to US$0.31 a share early Tuesday in Sydney, their lowest since Oct. 3.

Novonix struck a deal in 2024 to supply Stellantis with as much as 115,000 metric tons of synthetic graphite over six years from the start of 2026. It has also signed supply agreements with Panasonic and Volkswagen's PowerCo.

Novonix has one plant called Riverside, in Chattanooga, where it expects to start mass producing the battery material next year.

The company has previously announced plans for a second plant, also in Chattanooga. These facilities would have a combined production capacity of more than 50,000 tons annually, Novonix said.

"While Novonix is disappointed with this decision, it remains focused on its deliveries for Panasonic and PowerCo and continuing to provide samples to 15 current and potential customers for battery and industrial applications," the company said.

Write to Rhiannon Hoyle at rhiannon.hoyle@wsj.com

(END) Dow Jones Newswires

November 03, 2025 19:49 ET (00:49 GMT)

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