Chattanooga's Novonix secures Department of Defense loan for Riverside facility expansion

Chattanooga's Industrial Development Board meeting on April 3, 2025, spotlighted a significant step forward in local economic development with the announcement of a Department of Defense loan application for the Riverside facility. This initiative, focused on critical minerals and national security, is currently in its early stages, with expectations to hear back within a month. The board expressed optimism about the application, highlighting ongoing dialogue with the Department of Defense.

The meeting also detailed plans for the Enterprise South Industrial Park, which will operate at a capacity of 31,500 tons per year, contributing to a total production of over 50,000 tons when combined with the Riverside site. This expansion is crucial for fulfilling off-take agreements with major companies like Stellantis, Powerco, and Panasonic. The board is actively pursuing additional contracts to maximize the facility's capacity.

A conditional commitment of $754 million from the Department of Energy was also announced, which is a significant portion of the overall $1 billion project cost. This funding is expected to create over 500 jobs in the first phase, with potential for expansion to 75,000 tons capacity in the future.

The board reaffirmed its commitment to Chattanooga as its headquarters, emphasizing local engagement through initiatives like the Novonix Institute of Advanced Battery Technology, which collaborates with local schools to enhance STEM education. The company is also focused on hiring practices that include veterans and individuals with criminal histories, demonstrating a commitment to community upliftment.

In response to questions about market dynamics, it was noted that the majority of products will be sold domestically, particularly to U.S. battery manufacturers, with tariffs on imported graphite seen as a potential positive for local production.

Overall, the meeting underscored a robust vision for Chattanooga's industrial future, with a focus on sustainable practices, community engagement, and economic growth through strategic partnerships and investments. The board is poised to keep the public informed as developments unfold in the coming months.