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- Novonix (NVX) shares jumped eight per cent to 74 cents in the first hour of trade
- The company sees a path to profitability for its synthetic graphite EV battery anode production
- Induction furnaces at the company’s Tennessee manufacturing facility have allowed the company to double its production target
- The company’s furnace technology harmonises with its larger ESG focus given that the assets are stated to be ‘near-zero emissions’ producing
- Shares are up 12.8 per cent, trading at 77.3 cents at 11:35 am AEST
Dual-listed Novonix (NVX) has reported its achievement of key milestones in the pathway to profitable EV battery materials production.
The news pushed shares up eight per cent to 74 cents in the first hour of trade.
The company sees a pathway forward to becoming a cash-making machine as it sells battery anode materials – basically the part that lets electricity “flow” through a battery – to the markets.
“The results of our ongoing production campaigns clearly demonstrate NOVONIX’s path to profitable production through our first-in-the-world graphitization furnace technology,” NVX CEO Dr Chris Burns said.
Novonix makes battery materials using graphite, often touted as the ‘forgotten’ battery metal. Its main claim to fame is that its manufacturing process for the actual production of graphite is synthetic, meaning that there is no hard-rock mining.
Graphite mining has a somewhat blemished reputation given that a lot of it is produced in emerging or developing markets.
Underground mines can be particularly hazardous given that the dust generated can be particularly metallic. Some operators are hesitant to use electric equipment in graphite stopes given that the dust can interfere with electronics.
“Over several production campaigns, the Furnaces delivered in-spec product at a mass scale reaching our target design throughputs,” Mr Burns added.
“The potential to expand the production output of Riverside to up to 20,000 tonnes per annum is an important opportunity for the Company’s near-term growth plans with significant demand and strong progress in customer development.”
The company has doubled its production capacity target to 20,000 tonnes per annum and it also reports overall CapEx for the project looks lower than earlier thought.
Underpinning the company’s success towards its goal is the company’s continuous induction of 3rd-generation furnaces on-site the company’s Tennessee-based manufacturing facility.
The furnaces in question NOVONIX frames as groundbreaking technology – so far, the assets have been key to the company producing anode of the quality it wants.
The furnaces boast a green streak, too, with continuous induction technology being in line with decarbonisation.
The furnaces, NOVONIX announced, are “near-zero emissions.”
NVX shares were up 12.8 per cent, trading at 77.3 cents at 11:35 am AEST.
