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Panasonic Energy Secures New Supply Agreements for Battery Production

Panasonic Energy Secures New Supply Agreements for Battery Production

02/22/2024
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Panasonic Energy Secures New Supply Agreements for Battery Production

by Zyrene D.
02/22/2024
in Industry, Manufacturing

Panasonic Energy has recently concluded several supply agreements to bolster its battery manufacturing capabilities, including a new plant in De Soto, Kansas, and an existing facility in Nevada. The company has entered into a four-year agreement with Novonix for the supply of synthetic graphite, a critical component in battery production. This follows a series of discussions and builds on existing relationships with suppliers, signaling the advancement of these partnerships as Panasonic Energy gears up for production in its Kansas plant, anticipated to commence next year.

In addition to synthetic graphite, Panasonic Energy is also enhancing its supply chain for natural graphite through an agreement with Nouveau Monde Graphite (NMG). NMG aims to implement a comprehensive “mine to battery material” strategy, handling the extraction and processing of graphite internally before delivery to Panasonic Energy. This deal is set to activate with the commencement of NMG’s mining and processing operations in Canada, projected to start by mid-2027, according to Julie Paquet, VP of Communications and ESG Strategy at NMG.

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NMG’s expansion and the increased demand for its services are evidenced by a recent supply agreement with General Motors (GM), alongside the deal with Panasonic Energy. NMG will supply GM with 18,000 tons of active anode material annually, employing a similar comprehensive approach to production. GM’s financial commitment of $150 million towards NMG supports the latter’s development objectives.

These agreements, accounting for approximately 85% of NMG’s reserved volume for its forthcoming sites, are integral to the company’s strategy to expand its supply chain capabilities. NMG’s initiation of commercial production in Quebec is part of a broader, phased plan to increase processing capacity in North America and other regions to meet the growing demand for EV batteries. Moreover, NMG is aligning with the Inflation Reduction Act, ensuring its graphite meets the act’s requirements and appeals to automakers and battery manufacturers seeking compliant materials.

Julie Paquet highlighted the significance of the Inflation Reduction Act and NMG’s efforts to meet industry needs while fostering the development of the North American supply chain for battery materials.

Stay current with supply chain report news at The Supply Chain Report. For international trade resources, visit ADAMftd.com.

#PanasonicEnergy #Novonix #NouveauMondeGraphite #BatteryManufacturing #EVSupplyChain #SyntheticGraphite #NaturalGraphite #InflationReductionAct #SustainableMining #CleanEnergy #GraphiteProduction #SupplyAgreements #AutomotiveInnovation #KansasManufacturing #GMPartnership

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