NOVONIX: NOVONIX : 2024 Sustainability Report

2024 Sustainability Report About This Report NOVONIX is pleased to present our 2024 Sustainability Report (the "Sustainability Report" or the "Report") as the annual publication of the environmental, social, and governance ("ESG") initiatives of NOVONIX Limited (together with its subsidiaries, "NOVONIX," the "Company," "our" or "we"). This Report articulates our commitment to operating a profitable, ethical, and sustainable business and highlights the efforts and initiatives we have undertaken to establish a robust and adaptive ESG program since the inception of the program in 2023 and outlines future plans that align with our commitment to sustainability. As we further develop our ESG program, we will continue to emphasize transparency regarding our performance, progress, and engagement with various stakeholders. Scope of Report This Report is intended to present our efforts, initiatives, and qualitative and quantitative Company information across a set of priority ESG topics for the fiscal year ended December 31, 2024 ("FY 2024" or "2024"), unless otherwise noted. The Report also identifies our aspirations and plans for further progress of our ESG program, which will be driven by our consideration of key stakeholders including shareholders, customers, employees, regulators, suppliers, and the communities in which we operate, as well as the known and emerging needs of our business. The entities covered by this Report include NOVONIX Limited, a Queensland, Australia corporation ("NVX") whose ordinary shares are publicly traded (ASX: NVX) on the Australian Securities Exchange ("ASX") and whose American Depositary Shares are traded on the Nasdaq Stock Market (NASDAQ: NVX), and its two wholly owned operating subsidiaries - NOVONIX Anode Materials LLC, a Delaware limited liability company ("NAM"), and NOVONIX Baery Technology Solutions Inc., a Canadian corporation ("BTS"). These entities, together with other subsidiaries of the Company, are part of the consolidated group that has audited consolidated financial statements included in its public filings with the ASX and the U.S. Securities and Exchange Commission ("SEC"). Other subsidiaries not identified by name as part of this Report are intermediate holding companies or other non-operating entities. A list of all our subsidiaries may be found at Exhibit 8 to the Company's Annual Report on Form 20-F for the fiscal year ended December 31, 2024 (the "2024 Annual Report"), filed with the SEC on February 28, 2025. Background, Methodologies and Frameworks In 2023, we formally commenced our ESG program by establishing a commiee comprised of internal subject maer experts from across the Company (the "ESG Commiee"). To guide discussions around relevant sustainability themes, we engaged a third-party ESG advisor (the "Advisor"). With the support of the Advisor, we performed a focused materiality assessment to identify ESG topics that demanded the Company's initial aention. That assessment and the efforts that followed, including the preparation of our inaugural 2023 Sustainability Report, considered a range of reporting protocols and frameworks considered relevant to our business, such as the Sustainability Accounting and Standards Board ("SASB"), Global Reporting Initiative ("GRI"), and the UN Development Goals. The ESG Commiee looked to a range of protocols and frameworks for the following reasons: our primary focus was to lay the foundation for an ESG program that would begin with a focus on ESG topics we consider most critical to our business and then develop and expand in 2023 and beyond; based on the state of development of our business, we believe it was premature to evaluate and decide on a single or limited number of reporting standards that could be applied across businesses; our two operating subsidiaries - NAM and BTS - while both broadly engaged in the baery industry, have key differentiators between their businesses that required consideration of a broader range of reporting standards that properly accounted for those differences; and our NAM business has not yet achieved full-scale operations with plans to begin commercial scale production in early 2026, which means many of its business activities that relate to key ESG topics are still under development or not yet generating significant or reportable data. For the foregoing reasons, the 2024 Sustainability Report has been prepared with the same considerations in mind, as outlined below in "Disclosure Index," with a primary, but not exclusive, focus on applicable GRI and SASB standards. Reporting Period, Frequency, and Contact Point This Report covers the period of January 1, 2024, to December 31, 2024, which aligns with the period for our financial reporting, with references when necessary to prior period initiatives, activities, and data. We intend to publish our Report annually. You may contact our Investor Relations Department, at ir@novonixgroup.com for further information on this Report. The publication date for this report is March 31, 2025. Table of Contents About This Report 02 CEO Message 05 About NOVONIX 06 Our Vision, Mission, and Core Values 08 Synthetic Graphite and its Environmental Footprint 09 Advanced Baery Technology 11 Environmental Mitigation Efforts 12 Our Commitment to Sustainability 13 Materiality Assessment 15 Environmental Initiatives 16 Energy Management 16 Generation Mix 17 Greenhouse Gas Emissions 18 Air Quality 23 Waste and Hazardous Waste Materials 24 Environmental Impact on the Supply Chain 25 Our Social Initiatives 26 Workforce Health and Safety 26 Health and Safety Metrics 28 Employee Engagement 29 Product Safety 31 Cybersecurity 31 Workplace Culture and Inclusiveness 32 Corporate Social Responsibility 34 Our Governance Initiatives 36 Governance and Oversight Structure 37 Nominating and Corporate Governance Commiee 38 Audit and Risk Management Commiee 39 Remuneration Commiee 39 Board Composition and Skills 40 Executive Management 42 ESG Commiee 42 ESG-Aligned Executive Compensation 42 Business Ethics & Policies 43 Disclosure Index 47 Disclaimers 48 Appendix: 2023 NOVONIX Materiality Assessment 49 Cautionary Note Regarding Forward-Looking Statements This Sustainability Report contains "forward-looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995, about the Company and the industry in which it operates. Forward-looking statements can generally be identified by use of words such as "anticipate," "believe," "contemplate," "continue," "could," "estimate," "expect," "intend," "may," "plan," "potential," "predict," "project," "should," "target," "will," or "would," or the negative of these terms and other similar expressions. Examples of forward-looking statements in this Report include, among others, statements we make regarding the future growth of the baery industry and demand for electric vehicles and energy storage systems, our anode materials production targets and timing of commercial production at our Riverside facility, the performance of our proprietary Generation 3 continuous induction furnaces and their ability to meet customer specifications on a timely and cost-effective basis and achieve the anticipated environmental benefits, the expected benefits and commercial success of our cathode synthesis technology, our ability to successfully deploy advanced data capabilities, our cost, throughput, and sustainability targets, our expectations for Scope 1 emissions of our Riverside facility, our ability to achieve profitability and sales price targets, the efforts and potential benefits of our working with the U.S. Department of Energy, the timing of our future site expansions, and our plans for the continued development of our ESG program and our ability to achieve our ESG initiatives. We have based these forward-looking statements on our current expectations and projections about future events and trends that we believe may affect our financial condition, results of operations, business strategy, and financial needs. Such forward-looking statements involve assumptions and are subject to known and unknown risks, uncertainties, and other factors that may cause our actual results, performance, or achievements to be materially different from any future results, performance, or achievements expressed or implied by the forward-looking statements. Factors that could affect our business and results are included in our SEC filings, including the Company's most recent annual report on Form 20-F. Copies of these filings may be obtained by visiting our website at ir.novonixgroup.com/financial-information/sec-filings or the SEC's website at ww w.sec.gov . New risk factors may emerge from time to time, and it is not possible for our management to predict all risk factors, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in, or implied by, any forward-looking statements. You should not rely on forward-looking statements as predictions of future events. We have based the forward-looking statements contained in this Report primarily on our current expectations and projections about future events and trends that we believe may affect our business, financial condition, and operating results. We undertake no obligation to update any forward-looking statements made in this Report to reflect events or circumstances after the date of this Report or to reflect new information or the occurrence of unanticipated events, except as required by law. We may not actually achieve the plans, intentions, or expectations disclosed in our forward-looking statements, and you should not place undue reliance on our forward-looking statements. Our forward-looking statements do not reflect the potential impact of any future acquisitions, mergers, dispositions, joint ventures, or investments. In addition, statements that "we