Join our daily newsletter At The Bell to receive exclusive market insights
- Just weeks after listing on the North American over-the-counter (OTC) market, battery maker Novonix (NVX) has provided an investor update
- The tech stock, which now trades on both the ASX and the OTCQX, listed on the second market in late September
- Today’s update focussed on Novonix’s growing tier-one client base and what sets it apart from other manufacturers
- Overall, NVX is gearing up to target the booming market opportunity, which could grow more than tenfold within the next decade
- The announcement comes just weeks after Tesla’s Battery Day event, which electrified battery material miners and manufacturers
- Novonix shares ended the week up 1.24 per cent, trading for $1.22 in a $423.6 million market cap
Just weeks after listing on the North American over-the-counter (OTC) market, battery maker Novonix (NVX) has provided an investor update.
The tech stock, which now trades on both the ASX and the OTCQX, listed on the second market in late September.
In today’s update, Novonix provided an overview of its global customer base. This includes tech giants like Samsung and Apple, appliance creators like Panasonic and Dyson, telecommunications leader Huawei and car manufacturer Honda.
More importantly, Novonix says its client base represents a wide range of battery industries, including consumer electronics creators and medical device manufacturers. Even still, the battery maker said there are more major auto original equipment manufacturers (OEMs) in its client cohort which it can’t name due to confidentiality agreements.
A booming market
Ultimately, Novonix’s investor update was centred on the growing global opportunity for battery manufacturers. Positively, the cathode and anode market, which is currently worth around US$10 billion (approximately A$13.93 billion) is set to boom in the coming years.
Speaking to the boom, Novonix said demand for renewables and green energy was driving growth in the battery materials market. By 2030, consulting firm Avicenne Energy forecasts the market will have grown tenfold.
A big part of this is growth in the world’s electric vehicle (EV) market. Twenty years from now, annual passenger EV sales are forecast to rise to 56 million. As a result, a jump in the EV market will trigger higher battery demand, with 99 lithium-ion battery (LIB) mega factories ready to service the surge.
Of course, that leads to higher demand for high-performance battery materials, a market expected to grow more than sevenfold.
All up, it’s estimated anode and cathode materials market will be worth between US$50 billion (around A$69.63 billion) and US$100 billion (about A$139.26 billion) within the next decade.
What sets Novonix apart?
Novonix also alluded to the ‘million-mile battery’ in today’s presentation.
According to the company, there are three key requirements for this type of cell: long-life anodes, cathodes and electrolytes. Currently, Novonix is working to produces each of these elements in-house as General Motors and Tesla battle to get the first vehicle with this kind of battery on the road.
In addition, Novonix said its competitive pricing, safety guarantees, U.S. manufacturing base and focus on sustainability set it apart from other battery makers.
The company rounded off today’s announcement by reaffirming its commitment to becoming a tier-one global supplier in the rapidly evolving materials market.
Novonix shares ended the week up 1.24 per cent, trading for $1.22 in a $423.6 million market cap.
