Phillips 66, an energy and logistics company, will get a 16 per cent stake in Novonix and a seat on the board for its money if shareholders approve the deal.

The announcement led to a 16 per cent surge in the Novonix share price by mid afternoon.

Phillips 66 will be the second-biggest shareholder in Novonix behind St Baker Energy Holdings, led by Trevor St Baker, which has 17 per cent.

Novonix chief executive Chris Burns said the investment would provide capital to support growth and ongoing research and development. The company is currently scaling up its synthetic graphite production in the US. Graphite is a key component in battery anodes.

The capital will support the tripling of its anode materials by 2023.

It is also looking to develop new battery technologies.

Phillips 66 is a global manufacturer of specialty coke which is a precursor in the production of electric vehicle batteries and Novonix processes that specialty coke to make its anode materials.

“We are excited by Phillips 66’s vision for a sustainable future and confidence in our business plan and management team,” Burns said.

Under the deal, Phillips 66 will get 77.9 million shares in Novonix.

Its chief executive Greg Garland said the deal would support the development of a battery supply chain in the US, a crucial issue in America which has relied heavily on China for battery materials.

“It advances our commitment to pursue lower carbon solutions while leveraging our leadership position and expertise in the specialty coke market and supporting Novonix’s emerging position in the US-based anode production,” Garland said.