Pioneer of Advanced Battery Materials, NOVONIX Charged Up on ASX

Summary

  • NOVONIX’s focus is to support long-life battery materials at a lower cost, restarting processing in June after recommissioning.
  • June quarter witnessed $63 mn equity raising and capital restructuring. Funding is now in place to expand production to 2,000 tpa progressively over 2020 and 2021.
  • Operational developments: announcement of DPMG technologies, processing 10 tons of precursors (feedstock) in June, ordering of additional plant and equipment.
  • The Company is currently continuing to file new patents on IP around DPMG inventions and findings and optimizing conditions for different particles.
  • Evaluation of commercialization options, collaboration with technology partners and achieving other Million-Mile Battery initiatives remain in pipeline.

NOVONIX LIMITED (ASX: NVX), an integrated developer and supplier of high-performance materials, equipment and services for the global lithium-ion battery (LIB) industry, is riding high on ASX. NVX share price skyrocketed over 13% mid-day to $1.680 on 24 August. During early trade hours on 25 August, NVX shares traded at $1.650. The stock has provided ~450% return over the last six months.

With operations in the USA and Canada and sales in over 14 countries, NOVONIX’s mission is to support the global deployment of LIB technologies for a cleaner energy future. The Company’s technologies support “million-mile+ battery” performance.

Last month, NOVONIX unveiled its Quarterly Activities Report for April to June 2020, demonstrating good progress and an interesting pipeline.

Activities at NOVONIX Through April to June 2020

PUREgraphite Developments

NOVONIX's PUREgraphite anode material is the Company’s first commercial technology. June was the first month of operation, with a new plant that witnessed interruptions with significant time dedicated to post-construction defects, optimization of equipment and settings as well as the extensive operator training.

Despite this, 10 tons of precursors (feedstock) were processed which are ready for finishing, quality control and performance verification inclusive of battery cell manufacture and cell performance testing and benchmarking.

The Company advises that production levels are being progressively scaled up following the start-up, product validation and quality control results.

Battery Technology Solutions Activities

Notably, the Company announced Dry Particle Micro Granulation (DPMG) technologies, associated patent application filings and potential for breakthrough improvements to both anode and cathode materials. It also announced Single Crystal Cathode (SCC) technologies based on DMPG technology and associated patent application filings.

The Company further advises that funding is in place to advance the SCC and DPMG technologies from lab to pilot scale while exploring early commercialization opportunities. Currently, for DPMG, pilot scale demonstration, optimizing conditions for high nickel and cobalt-free materials, and coatings/dopants for performance improvement are ongoing.

Meanwhile, NOVONIX continues to file new patents on IP around DPMG inventions and findings.

Corporate End

A successful $63 million equity raising and capital restructuring took place in June. The aim was to enable execution of business strategy and plan to become a market-leading producer of ultra-long-life anode materials for LIB, particularly Electric Vehicles and Energy Storage Systems.

The transaction included the redemption of convertible notes, repayment of short-term unsecured loans, funding to expand the PUREgraphite anode business to 2,000 tpa capacity across 2020-2021 and funding for commercialization of NOVONIX’s recently announced breakthrough technologies- DPMG and SCC.

MUST READ: NOVONIX Completed $63m Equity Raising; Set To Advance Breakthrough Technologies Commercialisation

Cash and cash equivalents at the end of the June quarter amounted to $39.8 million.

Besides these developments, in the reporting period, NOVONIX updated the market on NOVONIX’s technology roadmap & “What’s Next”.

ALSO READ: NOVONIX Retail Entitlement Offer Heavily Oversubscribed, Board Recognises Shareholder Support

COVID 19 Impact

The SAMSUNG SDI supplier audit has been delayed by four months, owing to COVID-19 travel restrictions. The delay is also expected to impact the commencement of deliveries (currently targeted for October). However, alternative (remote) methods to finalise the pre-supply audit with SAMSUNG SDI remain under consideration.

Way Forward

PUREgraphite team continues to aim for first shipments in October 2020, until notified otherwise by Customer. Moreover, funding is in place to expand production to 2,000 tpa progressively over 2020 and 2021. Ordering of additional plant and equipment has also commenced and will occur progressively based on performance outcomes of the existing plant.

For DPMG Commercialisation Plan, $8.5 million is likely to be raised-

  • $3.5 million for integration/deployment of DPMG technology into PUREgraphite driving higher yield, less waste, higher performance and higher margins
  • $5 million for commercialization of DPMG technology to make high-performance long-life cathode materials, including comprehensive testing at pilot scale and development of full-scale processing capability.

Collaboration with technology partners, customers and evaluation of commercialization options including licensing, partnering, greenfield development remain in pipeline. Commercialization plan includes other Million-Mile Battery initiatives and NOVONIX’s proprietary electrolyte packages.

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