Why are Novonix (ASX:NVX) shares grabbing investors’ attention today?

June 10, 2022 06:48 PM AEST | By Priyanka Payal

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Why are Novonix (ASX:NVX) shares grabbing investors’ attention today? — Image source: © Timonschneider | Megapixl.com

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Highlights

Novonix Limited shares traded 3.416% lower at AU$3.110 per share on ASX at 2:26 PM AEST.

The shares of the other two battery materials producers, Pilbara Minerals Limited (ASX:PLS), and Liontown Resources Limited (ASX:LTR) were down 1.746% and 2.192% respectively.

The shares of ASX-listed company Novonix Limited traded 3.416% lower at AU$3.110 per share on ASX at 2:26 PM AEST today. It is to be noted that Novonix’s shares registered a significant fall today though there was no market sensitive announcement by the company on ASX.

One reason for the stock’s share price fall could be a sell-off in the broader market, as the benchmark index ASX 200 was as low as 0.90% in the early morning trade. The company has a market capitalisation of AU$1.56 billion. In the last one year, Novonix shares have gained almost 38.84%, while the stock is down nearly 70.44% year-to-date (YTD). Novonix Limited supplies and develops top-performing materials and technologies for the expanding Lithium ion-battery industry.

On ASX, the company is placed in the technology sector. After yesterday’s sell-off, the tech stocks fared poorly today also, as the S&P/ASX 200 Information Technology Index (XIJ) was 1.258% lower at 1403.900 points at 2:22 PM AEST.

The shares of Novonix Limited have been on investors’ radar after the company revealed this week that Emera Technologies Limited, a subsidiary of Emera Inc and Novonix Limited, has announced the delivery of a distinctive, custom-designed microgrid battery prototype. It is to be noted that Emera Technologies and Novonix first announced their partnership to develop innovative battery storage technology in 2021.

Read More: Vonex (ASX:VN8) signs agreement with CBA's telecom partner; shares gain

Image Source: © Alexandersikov | Megapixl.com

Novonix is planning to increase the production capacity to 10,000 metric tons of synthetic graphite per annum (tpa) by 2023 in order to meet the rising industry demand. The company also intends to attain the additional targets of 40,000 tpa and 150,000 tpa by 2025 and 2030. As of 31 March 2022, the company had a cash balance of AU$211,829,000. The battery technology company commenced trading on Nasdaq on 1 February this year.

Meanwhile, the shares of the other two battery materials producers, Pilbara Minerals Limited (ASX:PLS), and Liontown Resources Limited (ASX:LTR) were down 1.746% and 2.192% at AU$2.250 and AU$1.115 respectively.

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