FCA US LLC, a subsidiary of Stellantis N.V., has terminated two separate graphite supply agreements within one week, affecting synthetic and natural graphite producers Novonix and Westwater Resources. Both cancellations took place in early November 2025, disrupting financing and development plans tied to the original contracts.
On November 3 2025, Westwater Resources confirmed in an SEC Form 8-K that FCA US had terminated its binding offtake agreement for coated spherical purified graphite (CSPG) products, originally signed on July 17 2024 by its subsidiary Alabama Graphite Products LLC. Westwater disputed FCA’s right to terminate the deal and said it would reserve all legal rights. The company later stated that the loss of the Stellantis agreement forced it to pause a debt syndication process that had been backed by the offtake and to reevaluate plans for its Kellyton Graphite Plant in Alabama. It continues to hold offtake agreements with SK On Co. Ltd. and Hiller Carbon Inc., and is pursuing financing through the U.S. Export-Import Bank and other federal agencies.
A day later, on November 4 2025, Novonix Limited announced that Stellantis had terminated its six-year synthetic graphite offtake agreement, originally signed in November 2024. The contract covered a minimum of 86,250 tonnes and up to 115,000 tonnes of graphite to be supplied from 2026 to 2031 from Novonix’s Riverside facility in Chattanooga, Tennessee. In its public notice, Novonix said the termination followed the companies’ inability to agree on battery-cell product specifications and production qualification milestones. The announcement triggered an intraday share price decline of roughly 11–15 percent. Novonix retains a conditional loan commitment from the U.S. Department of Energy and maintains commercial relationships with other battery-material buyers.
Stellantis is a global automotive group formed by the merger of PSA Group and Fiat Chrysler Automobiles, with brands including Peugeot, Citroën, Fiat, Opel, and Jeep. Under its Dare Forward 2030 plan, the company targets 100 percent battery-electric vehicle sales in Europe by 2030 and is building large-scale battery capacity through its joint venture Automotive Cells Company (ACC) with TotalEnergies and Mercedes-Benz. As of mid-November 2025, Stellantis has not publicly disclosed any alternative graphite supply arrangements following the Novonix and Westwater terminations.
Novonix is a U.S.-based synthetic graphite producer expanding capacity in Tennessee with DOE support, while Westwater Resources is developing natural graphite production in Alabama positioned as a domestic anode-material source. Both are early-stage producers seeking to scale in a market still dominated by imports from China.
The termination of these graphite supply agreements underscores how challenging it remains to establish new graphite production outside China’s entrenched industry. For emerging producers, the events might cause concerns for investor and lender that offtake contracts, often viewed as essential for project bankability, may not always provide lasting security.
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