The Market Online - At The Bell

Join our daily newsletter At The Bell to receive exclusive market insights

Novonix (ASX:NVX), a player in the battery materials and technology sector, is in line to receive a US$103 million tax credit under the U.S. Department of Energy’s (DOE) Qualifying Advanced Energy Project Allocation Program (48C program).

This incentive aims to enhance the production of critical battery materials at Novonix’s Riverside facility at Chattanooga, Tennessee.

The 48C tax credit, initially introduced in 2009 and revitalized with an additional US$10 billion funding in 2022, encourages clean energy manufacturing, recycling, and decarbonization efforts. It strives to stimulate job creation, reduce industrial emissions, and strengthen domestic production of essential clean-energy products and materials.

In order to fully claim this tax credit, Novonix must meet the requirements outlined in Section 48C of the Internal Revenue Code, along with operational and employment plans specified in the application to the Internal Revenue Service. The company has a two-year window to fulfill these obligations.

Novonix is one one of the inaugural beneficiaries of this highly coveted program. The development underscores the company’s strong backing from the U.S. government. Previously, Novonix secured a US$100 million grant from the DOE’s Office of Manufacturing & Energy Supply Chains, facilitated by the Bipartisan Infrastructure Law.

“With this support, we believe we are poised to further expand our operations, create high-quality U.S. jobs, and advance our mission of developing technologies and materials to service the EV and ESS sectors. This green light bolsters our resolve to continue pushing boundaries, delivering shareholder value, and contributing to a cleaner, brighter future for all,” CEO of Novonix Dr. Chris Burns said.

NVX has been trading at 90 cents.

NVX by the numbers
More From The Market Online
The Market Online Video

ASX Market Close: Market closes the week on a high | 12 July 2024

The ASX200 closed up 0.9% to 7959 points. All sectors finished the day in the green…
ASX chart prices

Week 27 Wrap: ASX hits all time high; CBA shares’ two realities; US inflation hits 3% ahead of China plenum

The ASX200 ended the week at a fresh all time high. Can we hit 8,000pts by…
The Market Online Video

Infini soars 50% as company reveals it could’ve just made uranium history – redefining what it means to be “high grade”

Infini Resources (ASX:I88) has unveiled what it believes could be the highest ever soil sample uranium concentrations found in Newfoundland, Canada, at its
The Market Online Video

ASX Market Update: ASX hits new record on lower than expected US inflation | 12 July 2024

The ASX200 has claimed a new record, reaching above 7,950 points on the back of positive futures.