NVX: Testing of Initial Cathode Materials Positive Results – Expected to Play Key Role in Advancing Plans
By M. Marin
NASDAQ:NVX
READ THE FULL NVX RESEARCH REPORT
Novonix’s Three Divisions Help Advance Company’s Strategy
Novonix (NASDAQ:NVX) Anode Materials, Novonix Cathode Materials & Battery Technology Solutions (BTS) divisions are all expected to play crucial roles as NVX advances its strategy and leverages proprietary R&D and technology to develop critical materials for the battery sector. Through these operating units, Novonix is leveraging proprietary R&D to develop critical materials for the battery sector. The company’s initial primary concentration has been on the Novonix Anode Materials business. The company has also taken recent steps to advance the Novonix Cathode Materials unit and the R&D capabilities and technical expertise of the BTS unit are instrumental in helping advance the company’s strategy.
Cathode Materials - critical for lithium-ion batteries…
The Novonix Cathode Materials unit is key to the company’s strategy, as is the BTS unit, which will continue to be the company’s R&D and technology testing group. The company believes the BTS group continues to develop and innovate battery materials to advance sustainable energy performance and production processes. Novonix Cathode Materials is also expected to play a key role in the growing demand for batteries. NVX had launched a pilot production facility for cathode materials in a new 35,000-square-foot facility. The facility enables Novonix to demonstrate the feasibility of large-scale production, with the production target of up to 10 tonnes per annum (TPA).
… testing results critical to enable NVX to scale larger test samples, begin discussions with potential partners, customers to ultimately commercialize cathode technology…
Novonix announced today that BTS has successfully completed the commissioning of its 10 TPA cathode pilot line with the first product, a mid-nickel grade of single-crystal cathode material (NMC622). Reflecting NVX’s increased investment over the past two years in its cathode synthesis technology, the material was produced using Novonix’s all-dry, zero-waste synthesis technology, which is patent-pending.
Early testing results show that the company’s cathode technology produces comparable – or better – results compared to competitive materials. NVX intends to use the pilot line to further demonstrate the commercial potential and competitiveness of its cathode materials and technology. The company also expects its technology and patent-pending process to yield significant reduction in costs and waste in the cathode manufacturing process. Novonix views the cathode test results as critical to moving forward with plans to scale larger test samples and also begin discussions with potential partners and customers to ultimately commercialize its cathode material, as NVX has done and continues to do with Anode Materials division.
… as NVX continues to do with Anode Materials division …
The company has formed many agreements to secure demand for its anode materials, including with Kore Power and LG Energy Solution (LGES), a leading provider of battery technologies to the green automotive and mobility, IT and ESS & other areas. Supply agreements with Kore and LGES are key components behind the company’s strategy to ramp production capacity at its Riverside facility in Tennessee. LGES will have the option to purchase up to 50,000 tons of artificial graphite anode material over a 10-year period once mass production commences at NVX’s Riverside facility. Novonix expects to begin delivering 3,000 TPA of synthetic graphite to KORE in 2024.
Moreover, with LGES, as with Philips 66 earlier, NVX also secured partner funding. The overall agreement between the two JV partners included NVX issuing US$30 million of unsecured convertible notes to LGES. Other recent NVX initiatives to secure financing include a relationship with Phillips 66, which acquired a 16% stake in Novonix, and the company has entered into "Phase 2" of the DOE Loan Programs Office process to obtain funding of the facility.
The Kore, LGES and other strategic relationships underscore the positives of Novonix’s business plan and growth strategy, in our view. We would anticipate similar measures for the Cathode Material unit, as cathode development and testing progress.
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