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Why NOVONIX (ASX:NVX) Is Down 5.2% After Stellantis Ends Major Battery Supply Agreement - And What's Next

Simply Wall St · 11/18/2025 10:22
  • FCA US LLC (a subsidiary of Stellantis NV) announced the immediate termination of its significant offtake agreement with NOVONIX Limited after the two parties failed to agree on battery cell product specifications and mass production milestones.
  • This development shifts NOVONIX’s commercial focus toward deliveries for Panasonic and PowerCo, as well as advancing its Chattanooga-based synthetic graphite production facilities.
  • We'll explore how Stellantis stepping away from the large supply deal shapes NOVONIX’s positioning in the battery materials market.

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What Is NOVONIX's Investment Narrative?

For anyone considering NOVONIX right now, the big picture comes down to whether you believe in the company’s ability to carve out a significant foothold in North America’s battery materials market while navigating its transition from a pre-revenue story to commercial producer. The terminated offtake agreement with Stellantis is a meaningful setback, especially since it once signaled a major vote of confidence and a multi-year sales pipeline. However, NOVONIX remains focused on powering ahead with its core catalysts, delivering synthetic graphite for Panasonic and PowerCo, and ramping up large-scale production at its Chattanooga facilities. The recent price pressures and sharp selloff do suggest this change has materially shifted the short-term risk profile. The biggest question now centers on management’s ability to secure new long-term buyers and maintain momentum, especially as the business remains unprofitable and capital intensive. Yet, additional dilution to fund growth is a risk you should keep front of mind.

Our valuation report here indicates NOVONIX may be overvalued.

Exploring Other Perspectives

ASX:NVX Community Fair Values as at Nov 2025
ASX:NVX Community Fair Values as at Nov 2025
Eight retail investors in the Simply Wall St Community provided fair value estimates ranging from A$1 to A$10.79 per share, signaling very diverse expectations. With recent partner exits changing short-term catalysts and risks, it’s clear market participants see multiple scenarios ahead for NOVONIX. Explore the full spectrum of views in the community before making any decisions.

Explore 8 other fair value estimates on NOVONIX - why the stock might be a potential multi-bagger!

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.