Phillips 66 has inked a technology development agreement with affiliate Novonix Ltd. to advance production and commercialization of next-generation anode materials used to produce lithium-ion batteries as part of the downstream operator’s strategy to support lower-carbon technologies in line with the energy transition.
Under the Jan. 19 agreement, Novonix and Phillips 66—a global manufacturer of specialty coke, a key precursor to synthetic graphite anode material Novonix produces—will leverage their existing intellectual property and research and development (R&D) capabilities to drive commercial expansion of optimized feedstock and lithium-ion anode materials with reduced carbon-intensive processing, the companies said.
The partnership will focus on establishing a North American supply chain to power the growing lithium-ion battery sector, where Novonix’s US business already has plans under way to provide large volumes of synthetic graphite anode material, according to Chris Burns, Novonix’s chief executive officer.
“[T]ogether we plan to develop integral processes, from manufacturing precursor materials to producing high-capacity long-life synthetic graphite anode material intended to improve battery performance, lower cost, and decrease environmental impact,” Burns said
For Phillips 66, the collaboration follows its September 2021 acquisition of a 16% stake in Novonix as an investment to support scaled up production and development of new technologies for higher-performance energy storage applications, reinforcing both companies’ commitments to a lower-carbon future, according to Ann Oglesby, Phillips 66’s vice-president of research and innovation.
“[Building on Phillips 66’s strategic investment in Novonix, this new agreement] sets the framework for the companies to work closely and collaboratively to accelerate the development of next-generation materials for the US battery supply chain,” Oglesby added.
Phillips 66—one of the few downstream companies with an in-house R&D organization—is carrying out the collaboration through its Energy Research & Innovation group, which works on developing lower-carbon technologies—including next-generation batteries—to support the energy transition.
Based in Chattanooga, Tenn., Novonix plans to increase its capacity to produce synthetic graphite anode material for lithium-ion battery manufacturing to 10,000 tonnes/year (tpy) by 2023; 40,000 tpy by 2025; and 150,000 tpy by 2030, the company said.
Lithium-ion batteries are used to power electric vehicles, personal electronics, medical devices, and energy storage units.
Sustainable future
Phillips 66 already has taken a series of initiatives to reduce its carbon footprint as part of the operator’s transition to carbon neutrality, including a major project currently under way to convert the 120,000-b/d portion of its San Francisco refining complex in Rodeo, Calif. into a renewable fuels refinery (OGJ Online, Aug. 11, 2021; Aug. 13, 2020).
Upon completion of the reconfiguration project and full commissioning of production capacities in 2024, Phillips 66’s Rodeo Renewed will be one of the world’s largest renewable fuels plants, producing more than 800 million gal/year of renewable diesel, renewable gasoline, and sustainable jet fuel (SAF) from non-crude oil feedstock.
