Battery material producer investing $160 million in Chattanooga's former Alstom plant, creating 300 jobs

Mike Pare, Chattanooga Times Free Press, Tenn.
·2 min read

Jun. 22—A company that develops and commercializes material for the lithium-ion battery market will create nearly 300 jobs in Chattanooga.

Novonix, which currently has a facility in Lookout Valley, is expected to invest about $160 million in the project as it purchases and retrofits a building in the former Alstom plant off Riverfront Parkway, according to Tennessee Gov. Bill Lee.

The new 400,000-square-foot plant will accommodate a planned 8,000-ton per year production operation. It will join Novonix' existing operations at 353 Corporate Place where the company has been since 2019.

Novonix established its anode materials business, PUREgraphite, in March 2017 to develop and commercialize ultra-long-life, high-performance anode material for the lithium-ion battery market, specifically for electric vehicles and similar storage applications, according to the state.

To address the need for a U.S.-based lithium-ion battery supply chain, Novonix will expand its operations to produce the high-purity and high-consistency anode material required for long-life batteries.

"This project and the creation of nearly 300 new jobs will have a lasting impact on the Chattanooga community and Tennessee's economy," said Gov. Lee in a statement.

Chris Burns, Novonix' chief executive, said company officials look forward to growing the business "in the expanding Southeast hub of electric vehicle battery manufacturing.

He said the company "will help establish the domestic supply chain of key materials for the lithium-ion battery sector."

Volkswagen's Chattanooga plant is undergoing an $800 million expansion to build an electric SUV next year.

The battery-powered ID.4 is the first global EV produced by Volkswagen and is now produced in Germany and imported to the U.S.

Meanwhile, Chattanooga businessman Jimmy White purchased the former Alstom factory along with local hotel developer Hiren Desai for $30 million in 2018.

White has said the proposed redevelopment of the Alstom property could bring $2 billion to $3 billion in investments, add over $11 million in tax revenue annually for Chattanooga and Hamilton County and spur more than 5,000 jobs.

This is a developing story.