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Novonix contract with VW battery maker unaltered by ID.4 cancellation, leader says

Staff photo by Matt Hamilton / The Novonix facility on West 19th Street is pictured. Novonix's contract with a Volkswagen battery subsidiary is not expected to change after the automaker ceased production of an EV in Chattanooga.
Staff photo by Matt Hamilton / The Novonix facility on West 19th Street is pictured. Novonix's contract with a Volkswagen battery subsidiary is not expected to change after the automaker ceased production of an EV in Chattanooga. Staff photo by Matt Hamilton / The Novonix facility on West 19th Street is pictured. Novonix's contract with a Volkswagen battery subsidiary is not expected to change after the automaker ceased production of an EV in Chattanooga.

By Daniel Dassow 5 min read

As Volkswagen cancels production in Chattanooga of its fully electric ID.4, another company with local operations has financial interest in the performance of the automaker’s electric vehicles.

Volkswagen’s battery subsidiary PowerCo, founded by the German automaker in 2022, is one of two customers that have entered supply contracts with Novonix, a Chattanooga-based manufacturer working to turn the big blue plant off Riverfront Parkway into a factory for a key battery ingredient.

Novonix entered into a binding supply contract with PowerCo in 2024 after signing a testing and development deal earlier that year. PowerCo is supposed to buy a minimum of 32,000 tons of battery-grade synthetic graphite from Novonix between 2027 and 2031, according to the terms of the contract.

(READ MORE: Novonix may expand by riverside plant, not Enterprise South)

Novonix does not expect its contract with PowerCo to change because Volkswagen will stop making the all-electric SUV in Chattanooga, said Robert Long, Novonix chief financial officer.