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Novonix (ASX:NVX) - Managing Director, Philip St Barker - The Market Herald
Managing Director, Philip St Barker
Source: Finance News Network
  • Novonix (NVX) has taken great strides over the past quarter as it forges a path towards becoming a market-leading battery materials producer
  • A combination of novel technologies and an expanding production capacity underpin the company's strategy to become a major supplier to emerging electric vehicle (EV) and energy storage systems (ESS) markets
  • Processing at the company's PUREgraphite plant is being progressively ramped up following the start-up, product validation and quality control results achieved in June
  • Offtake arrangements have suffered pandemic-related setbacks, but the company is hoping to start shipping in October
  • After the major equity raise and capital restructuring in June, Novonix is fully funded to ramp up production and continue research and development of its novel battery materials technologies
  • Novonix ended Friday's session a slight 0.45 per cent in the green to trade for $1.12

Novonix (NVX) has taken great strides over the past quarter as it forges a path towards becoming a market-leading battery materials producer.

A combination of novel technologies and an expanding production capacity underpin the company's strategy to become a major supplier to emerging electric vehicle (EV) and energy storage systems (ESS) markets.

Processing progress

Work at the company's PUREgraphite processing plant was halted through April and May and only recommenced in June.

After recommissioning the plant, the first month was dedicated to ironing out any wrinkles in the manufacturing process, as well as plant optimisation and rigorous staff training.

Now the plant is up to speed, processing is being progressively ramped up following the start-up, product validation and quality control results achieved in June.

Offtake setbacks

The COVID-19 pandemic put up significant roadblocks to finalising commercial arrangements for the PUREgraphite product.

The SAMSUNG SDI supplier audit has been delayed by four months due to travel restrictions, and the companies are still considering alternative ways to achieve a final outcome.

It's now expected the first product will be shipped in October — but that date may still be pushed back pending the audit results.

On a more positive note, Novonix is fully funded to ramp-up production to the 2000 tonne per annum goal over the next 18 months. This target was outlined in the recent equity raising funding plan.

Finances

Novonix is reporting year-on-year revenue growth of over 100 per cent, and is forecasting $5 million total for the year.

With the $63 million raised for the company's capital restructure in June, Novonix has managed to pay down its debts and set itself up for the next phases of research and development and product commercialisation.

While the scale-up of the PUREgraphite plant is a principle goal in the near-term, the development of the company's novel Single Crystal Cathode & Dry Particle Micro Granulation technologies from lab to pilot scale are also a priority.

If things go according to plan, the company will be on its way towards its goal of developing the materials required for a million-mile EV battery.

Novonix ended Friday's session a slight 0.45 per cent in the green to trade for $1.12 each.


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