Join our daily newsletter At The Bell to receive exclusive market insights
- Novonix (NVX) has seen its share price jump 20 per cent following a corporate update in relation to the COVID-19 pandemic
- The battery materials supplier has put in place a COVID-19 Protocol plan for its employees, which complies with government restrictions
- So far, its subsidiaries, PUREgraphite and Novonix BTS, have maintained core operations
- PUREgraphite is on the verge of producing final graphite material
- However, if production comes to a halt, the company has enough feedstock material to last at least six months
- Novonix BTS has not yet experienced an impact on sales, battery testing or research and development services, but does expect this to happen soon
- Additionally, as the subsidiaries’ sales are denominated in US dollars, Novonix is managing currency risk by converting funds and hedging activities
- Novonix is up an even 20 per cent and shares are trading for 30 cents each
Battery materials supplier Novonix (NVX) has seen its share price jump 20 per cent following a corporate update in relation to the COVID-19 pandemic.
Earlier this month, Novonix began implementing a COVID-19 Response Plan. A couple days later, it implemented a company-wide COVID-19 Protocol for all of its operating locations.
The company has put this in place to protect its employees and ensure it has the best practices in place to prevent the risks surrounding the coronavirus, while continuing operations.
So far, Novonix has maintained all core operating activities at PUREgraphite in Chattanooga, Tennessee, and NOVONIX BTS in Halifax, Nova Scotia.
All staff have returned to their hometown, all non-essential travel has been cancelled, cleaning and social distancing practices have been implemented, home based work is now an option, and two shift operations and controls over visitors to our operations have been implemented.
PUREgraphite
Luckily, the company hasn’t experienced any delays to the commissioning of the PUREgraphite anode material production plant.
Novonix’s subsidiary, PUREgraphite, has finished construction and is in the final stages of commissioning its first commercial production system. At this stage, it expects to be producing final graphite material by the end of the month.
In case production does have to halt, PUREgraphite has built-up a significant inventory of feedstock materials on site. This is expected to support operations for at least six months.
As the company utilises graphite material for lithium-ion batteries, it remains confident the industry will continue to grow in the medium-term and long-term.
Novonix BTS
Reportedly, the Novonix BTS business has not yet experienced any material impacts on equipment sales, battery testing and research and development (R&D) services.
Its supply chains are still functioning on a business-as-usual basis while still being in accordance with local regulations around limited gatherings and social distancing.
However, Novonix does expect there may be a delayed impact on equipment sales, battery testing and R&D services related to COVID-19 due to the slowing sales cycle.
Additionally, as both businesses’ sales are denominated in US dollars, the company is subject to foreign exchange rate movements. It’s now actively managing currency risk by converting funds into US currency and hedging activities.
Novonix is up an even 20 per cent and shares are trading for 30 cents each at 3:11 pm AEDT.
