NOVONIX Limited (NASDAQ:NVX) shares are trading higher in the premarket session on Friday.
Yesterday, the company inked a binding off-take agreement for high-performance synthetic graphite anode material to be supplied to Panasonic Energy's North American operations.
The financial terms of the deal were not disclosed.
The materials will be supplied from from NOVONIX's Riverside facility in Chattanooga, Tennessee, the company said in a press release.
Under the off-take agreement, Panasonic Energy has agreed to purchase at least 10,000 tonnes of anode material for use in their U.S. plants over the term of 2025-2028.
During the term, if Panasonic Energy requests additional volumes, NOVONIX said it will try its best efforts to deliver the increased volumes.
NOVONIX and Panasonic Energy began working together on product sampling and testing after signing a memorandum of understanding with a subsidiary, Sanyo Electric Co., Ltd., in 2019.
"We look forward to expanding our long-standing relationship with Panasonic Energy to support its growth efforts in North America." Chris Burns, CEO of NOVONIX, said.
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Price Action: NVX shares are trading higher by 9.43% to $1.74 premarket on the last check Friday.