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Highlights:
- NOVONIX announced that its Anode Materials division has been chosen for negotiations to receive funding of US$150 million from the US Department of Energy.
- Post this update, NOVONIX’s shares were trading 10.978% stronger on the ASX at 1:15 PM AEDT.
Today, the battery material explorer NOVONIX Limited (ASX:NVX) shared that its Anode Materials division was chosen to enter negotiations to receive funding worth US$150 million from the US Department of Energy (DOE). This funding will help NOVONIX expand the domestic production of its high-performing synthetic graphite anode materials, the company reported.
Following this update, NOVINIX’s share price gained significantly, by 10.798%, on the ASX, reaching AU$2.360 per share at 1:15 PM AEDT today (20 October 2022).
Details of the funding
In its announcement, NOVONIX said that this award was announced by US President Joe Biden himself, who described the aim of the award as strengthening North America’s battery supply chain amidst rising demand and calls for onshoring these critical industries.
NOVONIX mentioned that negotiations would include final project details such as the total cost of the project, operational targets, and timing of access to grant funds.
According to the terms of the grant, government funds must be at least matched by the recipient. Further details regarding the funding will be shared by NOVONIX after the successful completion of negotiations with the DOE.
NOVONIX’s update also revealed that this was the first set of projects funded by Bipartisan Infrastructure Law. This funding is expected to increase domestic manufacturing of batteries used in electric vehicles and electric grids. The domestic production of EV batteries is said to be focused on the processing of materials and components that are imported from other countries at this moment.
As a result, this funding will promote to USA’s responsible and sustainable domestic development of significant materials needed to make lithium-ion batteries, enabling the country to strengthen its supply chain.
Chris Burns, Co-Founder and CEO, of NOVONIX, said:
