Chattanooga, TN, September 6, 2025
News Summary
The Chattanooga Area Chamber of Commerce has revealed that over $1 billion was secured in capital investments, primarily driven by Novonix’s expansion. The company, which has recently relocated its headquarters to Chattanooga, is expected to create 500 jobs as part of its new facility that will produce materials for electric vehicles. Supporting local companies like Avail Enclosure Systems and West Star Aviation are also contributing to job growth in the region with additional expansions. This collective investment is projected to yield a total of 742 new jobs.
Chattanooga Reports Over $1 Billion in Capital Investment
The Chattanooga Area Chamber of Commerce has announced that over $1 billion was secured in capital investment for the year, driven primarily by a major expansion from Novonix, a company specializing in battery materials. This significant financial milestone was celebrated at an event held on Thursday at the Convention Center.
Approximately 95% of the investment was attributed to a planned $1 billion expansion by Novonix, which recently relocated its headquarters from Australia to Chattanooga. As part of its expansion efforts, Novonix is currently installing furnaces at its Westside facility to produce synthetic graphite targeted at electric vehicle manufacturers.
The company has received unanimous approval for a $54 million tax break, contingent upon the creation of 500 jobs at a new facility within the Enterprise South Industrial Park. Additionally, Novonix is set to finalize a $5 million land purchase after satisfying conditions related to a $754 million loan from the U.S. Department of Energy.
Other Notable Investments
In addition to Novonix, other local companies have announced significant expansions in Hamilton County:
- Avail Enclosure Systems is set to create 82 jobs with a $10 million investment by the end of 2027.
- West Star Aviation plans to add 200 jobs with a $32 million investment by February as part of an ongoing five-year strategy.
- Master Machine intends to hire 45 employees with an $11.7 million expansion, planning to relocate by 2029.
Overall, the year’s investments are projected to generate 742 new jobs, with an average wage of $63,973. The Chattanooga Area Chamber of Commerce believes that these added jobs will enhance spending within the local economy.
Chamber Growth Updates
The Chamber’s president emphasized the essential role of community growth for business success. Partnerships through projects, such as the Chattanooga 2.0 pilot program, which supports college savings accounts for students in Hamilton County Schools, have been highlighted. Additionally, the Chattanooga Future Fund has raised approximately $5.5 million toward a target of $7 million, benefiting over 2,100 students with accounts established.
The chamber provided several updates on its five-year growth plan, “Chattanooga Climbs Higher,” reporting successful outcomes, including:
- 5,000 new jobs added, which is 15% of the targeted five-year goal.
- 69% of the capital investment goal has been reached.
- Establishment of 50 new apprenticeship programs.
Transportation Developments
In transportation news, the Chattanooga Airport has added five new direct flights, achieving 60% of its flight goal, although Spirit Airlines has recently cut three flights due to bankruptcy. In response, United Airlines has announced new service from Chattanooga to Newark, with expectations of a 30% increase in seat capacity during the summer.
Challenges and Leadership Changes
Despite recent layoffs among major employers, the Chamber remains optimistic about the community’s resilience to future economic challenges. Additionally, the Chamber announced changes in board leadership, with Brad Cobb succeeding Jay Dale as chair. Awards recognized individuals for their contributions, including Constance Coffman as ambassador of the year and the East Ridge Council as the council of the year for community commitment.
Frequently Asked Questions
What is the total capital investment reported by the Chattanooga Area Chamber of Commerce?
The total capital investment reported is over $1 billion for the year.
What company is primarily responsible for this investment?
The majority of the investment, approximately 95%, is sourced from Novonix, which is undergoing a major expansion.
How many jobs are expected to be created from this investment?
The investments are expected to create 742 new jobs with an average wage of $63,973.
What other companies are expanding in Hamilton County?
Other companies expanding include Avail Enclosure Systems, West Star Aviation, and Master Machine.
What initiatives is the Chamber currently focusing on?
The Chamber is focusing on its “Chattanooga Climbs Higher” growth plan and partnerships for educational savings programs for local students.
Key Features of Chattanooga’s Capital Investments
| Company | Investment Amount | Jobs Created | Expansion Details |
|---|---|---|---|
| Novonix | $1 billion | 500 | New facility in Enterprise South Industrial Park |
| Avail Enclosure Systems | $10 million | 82 | Creates jobs by 2027 |
| West Star Aviation | $32 million | 200 | Part of five-year expansion plan |
| Master Machine | $11.7 million | 45 | Relocating to Manufacturers Road area by 2029 |
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Additional Resources
- Times Free Press: Chattanooga Chamber Celebrates $1B Year
- Wikipedia: Chattanooga
- Plant Services: Novonix Invests $46M to Open Synthetic Graphite Manufacturing Facility
- Google Search: Novonix
- Manufacturing Dive: Novonix Secures $755M DOE Loan for Tennessee Synthetic Graphite Facility
- Encyclopedia Britannica: Battery
- Globe Newswire: NOVONIX Announces Intended Location for New Synthetic Graphite Manufacturing Plant
- Google News: Chattanooga Economic Development
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.
