Chattanooga, July 31, 2025
News Summary
Chattanooga is set to experience significant economic growth with Novonix advancing plans for a new synthetic graphite plant. Located at Enterprise South Industrial Park, this facility aims to increase production capacity for electric vehicle batteries, creating over 500 new jobs and requiring a multi-million dollar investment. The local government has responded positively, allocating funds for education initiatives alongside the project. This expansion marks a strategic move to bolster domestic production in response to high demand for battery materials.
Chattanooga Progresses with Novonix’s New Synthetic Graphite Plant Plans
Chattanooga is set to see significant economic benefits as Novonix, a battery materials and testing company, advances its plans for a new synthetic graphite production plant. This facility, which will be located at Enterprise South Industrial Park on an 812-acre greenfield site, marks a major step in the company’s efforts to expand its production capabilities, especially given the increasing demand for electric vehicle batteries.
Currently, Novonix operates a riverside plant in Chattanooga that produces 20,000 tons of graphite annually. The new Enterprise South facility aims to ramp up production, reaching an initial capacity of 31,500 tons annually and ultimately expanding to 75,000 tons by 2028. This is significant not only for the company but also for the local economy, as Novonix is projected to create over 500 new jobs as part of its expansion efforts.
Novonix has sought a 15-year Payment in Lieu of Taxes (PILOT) agreement from the city of Chattanooga and Hamilton County. If approved, this agreement would provide the company with tax breaks in exchange for its substantial investment exceeding $1 billion. The city council has responded positively to Novonix’s plans, although there are concerns regarding infrastructure improvements along Highway 58 due to anticipated increases in traffic.
The company’s move to establish a production facility in Chattanooga is particularly noteworthy as synthetic graphite production has previously been dominated by China. High demand for battery materials in the U.S. has prompted Novonix to bolster domestic production, aligning with the U.S. Department of Commerce’s recent measures to impose antidumping tariffs on graphite and anode active material imports from China. Such developments position Novonix strategically within North America’s emerging battery materials sector.
Local legislators view Novonix’s investment as a positive development, and Hamilton County is planning to allocate at least $5 million of its fees to enhance education initiatives in local school districts, thereby contributing to workforce development in technical education fields.
The Enterprise South plant is expected to be operational by the end of 2028. As part of its development strategy, Novonix has recently secured a $5 million agreement to acquire a 182-acre parcel at the Enterprise South Industrial Park. Local government entities have already granted necessary approvals, including unanimous endorsements from both the City of Chattanooga and Hamilton County.
Novonix intends to secure a $754 million loan from the U.S. Department of Energy to finalize the purchase and further strengthen its operational capacity. The Chief Operating Officer, Darcy Macdougald, underscored the crucial role that this expansion will play in building a resilient domestic supply chain for battery materials.
With its plans for the new synthetic graphite production plant, Novonix is not only set to enhance its production capacity but also to contribute significantly to the local and national economy by creating jobs and boosting the electric vehicle market’s growth.
Key Project Features
- Location: Enterprise South Industrial Park, Chattanooga.
- Project Size: 812 acres, first greenfield site for Novonix.
- Production Capacity: Expected to reach 75,000 tons annually by 2028.
- Job Creation: Over 500 new jobs to be created.
- Investment: Over $1 billion planned investment.
- PILOT Agreement: 15-year tax breaks in exchange for investment and job creation.
- Operational Start Date: Anticipated operational by end of 2028.
Frequently Asked Questions
What is Novonix planning to do in Chattanooga?
Novonix is advancing plans to build a new synthetic graphite production plant in Chattanooga, aiming to expand its production capacity significantly.
Why is synthetic graphite important?
Synthetic graphite is a critical component for electric vehicle batteries, and increasing its production domestically supports the growing EV market in the USA.
What financial incentives is Novonix seeking?
Novonix is seeking a 15-year PILOT agreement that would provide tax breaks in return for job creation and investment in the local economy.
When is the new plant expected to be operational?
The new plant is expected to be operational by the end of 2028.
Deeper Dive: News & Info About This Topic
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Additional Resources
- Times Free Press: Novonix Now Based in Chattanooga
- WDEF: Novonix to Build Second Chattanooga Plant
- Charged EVs: Novonix Finalizes Land Deal
- News Channel 9: Chattanooga Advances Pilot Program for Novonix
- GlobeNewswire: Novonix Finalizes Purchase Agreement
- Wikipedia: Synthetic Graphite
- Google Search: Novonix
- Google Scholar: Novonix
- Encyclopedia Britannica: Novonix
- Google News: Novonix
Author: STAFF HERE CHATTANOOGA WRITER
The CHATTANOOGA STAFF WRITER represents the experienced team at HEREChattanooga.com, your go-to source for actionable local news and information in Chattanooga, Hamilton County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as Riverbend Festival, Chattanooga Oktoberfest, and Moon River Festival. Our coverage extends to key organizations like the Chattanooga Area Chamber of Commerce and United Way of Greater Chattanooga, plus leading businesses in manufacturing, insurance, and utilities that power the local economy such as Volkswagen Chattanooga, BlueCross BlueShield of Tennessee, and EPB. As part of the broader HERE network, including HEREBristol.com, HEREKnoxville.com, HEREMemphis.com, and HERENashville.com, we provide comprehensive, credible insights into Tennessee's dynamic landscape.
