Why the NOVONIX FPO share price is soaring

The Novonix Limited (ASX:NVX) share price rallied on Tuesday amid the announcement of the DowDuPont chair joining its board. 

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The NOVONIX FPO (ASX: NVX) share price rallied on Tuesday as the company announced the Executive Chairman of DowDuPont, a $73 billion holding company comprised of The Dow Chemical Company and DuPont, is set to join its board of directors. 

Mr Andrew Liveris is expected to join Novonix next year.  

Novonix is a developer and supplier of equipment and services for the global lithium-ion battery industry, with operations in the USA and Canada and sales in over a dozen countries. 

The company originally listed on the ASX was known as Graphitecorp Limited, before Graphitecorp bought Canada’s Novonix for $5 million and took on its name. 

Novonix Limited’s share price climbed 5.26% to close on Tuesday at $1.00. 

Novonix’s market value sits at around $56.53 million, a much smaller venture than other companies Mr Liveris has directed.   

Mr Liveris will serve as a non-executive director of Novonix and will assist with market entry and growth opportunities with a focus on North America. 

“The rechargeable battery market offers huge global growth, with the opportunity to supply differentiated products and establish market share during this relatively early stage of market maturity,” Mr Liveris said.  

“I am excited with the prospect of growing Novonix and its technology in the international and especially the US markets.  

“The team is focused on innovation and new manufacturing jobs in the clean energy space – particularly in the United States – something about which I have been passionate for a long time.  

“Novonix and its products have great potential in a rapidly growing global market, and I am keen to help realise that potential.”    

Mr Liveris will invest $500,000 into ordinary shares of the company by way of private placement, subject to shareholder approval at the company’s 2017 AGM.    

And the high level appointment is expected to generate renewed interest in Novonix, which hopes to make further inroads towards increasing its share of the high-value battery materials sector believed to be worth more than $20 billion.  

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Motley Fool contributor Steve Holland has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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