Hi, I'm Dr. Chris Burns, CEO of NOVONIX. I'm happy to be here only a few weeks after providing an update on our quarterly activities report, with the exciting news that we've signed a binding offtake with Panasonic Energy to supply them 10,000 tons of our high-performance synthetic graphite material for use in their North American facilities from our Riverside site. I want to spend a few moments today speaking about the importance of this agreement, the work it's taken to get to this stage, and how these types of agreements continue to underpin NOVONIX's position as a leader in this space, as well as our plans for growth for the future. As always, please review our notice and disclaimers. We spoke during the quarterly activities report about the importance of our Riverside facility and the milestones we accomplished there over the course of 2023.
We believe this will be the first large-scale U.S. production site dedicated to the manufacturing of high-performance synthetic graphite for the battery industry, and it really underpins our position as a leading U.S.-based battery materials and technology company with a focus on lower carbon footprint technology. We'll speak about the importance of that. We're here to support the large and growing efforts to localize the battery materials supply chain. We'll talk about the strong growth that we continue to see in that sector for this decade and beyond. Since starting our nanomaterials group in 2017, we've had a focus on the development of intellectual property, key intellectual property for the manufacturing of high-performance synthetic graphite, which we've now brought to fruition at scale in our continuous-based graphitization systems within our Riverside facility.
All of this is continuing to propel NOVONIX forward in our growth plans for the future. We'll speak about all of this today and how they relate to the importance of our agreement now with Panasonic Energy. Of course, the other parts of our business are all-dry, zero-waste cathode synthesis technology and Battery Technology Solutions group continue to backbone NOVONIX in our long-term growth plans and strategies in the battery materials sector. But now, with our nanomaterials division, a focus on customer and government support is allowing us to build a supply chain here in North America. This supply chain is, of course, to support the need for the vehicle and energy storage sector.
While you can find headlines talking about the slowing rate of adoption of electric vehicles, we still see huge growth in this sector with double-digit annual growth from here to the end of the decade, as cited here on the left. We need to be able to support the cell manufacturing requirements for these electric vehicles with critical minerals that are produced here in North America. That was our goal when we started our nanomaterials division in 2017, and graphite has finally become a highly talked-about topic in terms of the importance in the supply chain. It has been named the critical mineral by the U.S. Department of Energy and the Treasury. Last quarter, China imposed export control restrictions on battery-grade graphite.
For the first time, we saw trade statistics in December showing a reduction of the export of graphite from China to countries such as Japan and the United States. All of this continues to highlight the importance of developing a local supply chain for a robust future for the energy storage industry here in North America. The challenge is exactly that, that we do not have that robust supply chain today, and the demand curves forecasted for this sector far outstrip the plans to build capacity in North America. We can discuss the importance of starting early and developing technology, a path to production, and demonstrating those products at mass production scale in order to reach key agreements with customers, such as this with Panasonic Energy.
We've always been here to try to fill the gap in the expected shortfall of non-Chinese material to support the North American supply chain. We've shown the performance of our nanomaterials in terms of the long-life performance that we get from many of our grades. We've also shown the diversity in the products that we can make to meet the different requirements of all of the cell manufacturers building capacity here in North America, as this is a specialty product designed to spec for each of those cell manufacturers. Of course, that brings us to our agreement with Panasonic. Panasonic is a leading developer of cell technology for the vehicle and energy storage sector.
They have developed relationships with Tesla, Honda, Toyota, Mazda, Subaru, Ford, and Lucid, and plans to build 200 GWh of capacity here in North America with a focus on reduction in their carbon footprint. We began working with Panasonic through their Sanyo Electric subsidiary in 2019, again continuing to highlight the importance of beginning early in this sector, developing technology, and a strategy to bring that to scale, as we see here with our Generation 3 systems in our Riverside facility, and a focus on that technology being lower carbon footprint. In this agreement, as I mentioned, we will be supplying 10,000 tons of product from our Riverside facility for Panasonic Energy's use here in North America. We'll begin supply in 2025 over a four-year term, subject to milestones in completing mass production qualification.
The agreement has price structures with price adjustments over the term in the event that raw materials fluctuate in NOVONIX's cost structure. This really shows an alignment between Panasonic Energy and NOVONIX in terms of our goals to scale production of local capacity, to improve our carbon intensity, and benefit from the programs that exist now in the United States, such as the 45X credits in the Inflation Reduction Act, through which we'll be eligible in the production of a key material, synthetic graphite, and Panasonic Energy will be eligible through the localization of cell manufacturing.
This agreement continues to underpin our growth plans, our Riverside facility to 20,000 tons now with the supply agreement from KORE Power and this binding offtake with Panasonic Energy, with our focus continuing to be set on growth in the future to support other customers, such as our relationship with LG Energy Solution and others, toward our eventual target of 150,000 tons of production capacity here in North America. As we talked about in the quarterly activities report, our focus on 2024 was in four critical areas: maintaining industry leadership across the battery materials sector, scaling operations in Tennessee within our Riverside facility, securing tier one customers, and then securing financing to continue to scale our operations. Of course, now only two months into the year, we're accomplishing a huge milestone in signing this binding offtake with a tier one customer in Panasonic Energy.
These types of agreements will continue to underpin the growth of the company and the financing required for the company, as we look forward to an extremely exciting year in 2024 here for NOVONIX. Thank you.