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Highlights
- Shares of Novonix were trading in the red in the early trade on Wednesday (9 November).
- The company recently secured grant funding from the US Department of Energy.
The shares of the battery material developer Novonix Limited (ASX:NVX) opened trading in the red territory on ASX on Wednesday morning. The company’s share price declined by 2.03% on the ASX to AU$2.455 per share at 10:42 AM AEDT today (9 November 2022).
The share price of Novonix has fallen over 74% on the ASX in the previous 12 months, and on a YTD basis, the company’s share price has declined almost 77% (as of 10:42 AM AEDT today).
What are the recent updates from Novonix?
Novonix’s cathode technology facility
Novonix announced on Wednesday that it has opened a new pilot production facility for cathode materials. Novonix has opened a new 35,000 square feet facility for its all-dry cathode synthesis technology to pilot its patent-pending technology.
Grant funding from US Department of Energy
On 3 November 2022, Novonix announced that it had been selected to enter a negotiation with the US Department of Energy (DOE) to receive a proposed grant funding of US$150 million.
Initially, Novonix announced on 20 October 2022 that it had been chosen for grant funding worth US$150 million from the US DOE to support the company’s Anode Materials division. This will further help Novonix to expand the domestic production of high-performance synthetic graphite anode materials.
On 3 November, Novonix said that it was expecting the negotiation phase to continue for several months and cover the final project details, including the expected total cost of the project, operational achievements, and timing of access to grant funds.
The initial proposed budget of the project budget is around US$1.027 billion over the period of 2023–2025. This includes:
Novonix also mentioned that a grant contribution of US$150 million must be matched by the company, as per the terms of the grant. In addition to this, Novonix is also actively looking to secure more financial support needed to cover the project cost.
Meanwhile, the S&P/ASX 200 Materials sector (INDEXASX:XMJ) was quoted at 16460.9 points, up by 1.905% or 307.7 points, on the ASX at 11:00 AM AEDT today.
