The Novonix Ltd (ASX: NVX) share price was one of the standout performers on the ASX today, finishing the day 76.64% higher at $1.21. This rise takes the company's current market capitalisation to just under $260 million.
Novonix is an integrated developer and supplier of materials, equipment and services for the global lithium-ion battery industry.
The company has operations in the US and Canada, and sales in more than 14 countries across the globe. Its customer base comprises leading global brands like Samsung, Apple, Honda, Panasonic, and Sanyo.
What caused the Novonix share price to surge?
This morning, Novonix revealed it has developed an advanced cathode material manufacturing method using its proprietary dry particle microgranulation (DPMG) technique. The manufacturing method relates to new single crystal cathode materials and processes.
The breakthrough of the DPMG technique was reported to the market on 15 May 2020. The company believes that today's announcement further demonstrates the commercial application of DPMG.
Single crystal cathode materials have reportedly demonstrated outperformance over the current standard, possessing enhanced energy density and ultra-long life when used in electric vehicles (EVs) and energy storage systems.
The significance of single crystal cathode was highlighted in The Journal of The Electrochemical Society. A 2019 paper published by Professor Jeff Dahn and his team concluded that cells of this type should be able to power an EV for over 1.6 million kilometres and last at least 2 decades in grid energy storage.
The new single crystal cathode materials and DPMG method were developed by the Professor Mark Obrovac Research Group at Dalhousie University. This group has been funded by Novonix in partnership with the Canadian government.
Under the commercialisation arrangements with Professor Obrovac and Dalhousie University, Novonix owns the intellectual property rights to the new single crystal cathode technology on an exclusive and royalty-free basis.
Novonix, through its wholly-owned subsidiary Novonix BTS, has filed a patent application to protect these new single crystal cathode methods. This is on top of the patent applications already filed to protect the DPMG process.
What now?
Commenting on today's update, Novonix managing director Phil St Baker said:
The Single Crystal Cathode development complements NOVONIX's PUREgraphite anode product, both addressing the ultra-long-life battery performance requirements critical to the achieving the million-mile battery life being sought by leading EV automakers.
Meanwhile, Professor Mark Obrovac, lead inventor of the DPMG and new single crystal cathode materials, shed some light on the research project by stating:
A major focus of my lab's research is the development of elegant dry processing methods for battery materials that are amenable to scaling, while simultaneously increasing yields, eliminating waste, and enabling the use of inexpensive feedstocks. Along the way we found out that these new methods can enable the synthesis of new advanced materials with properties that have not been previously accessible by more conventional methods. This has created a tremendous opportunity for the advancement of practical battery materials.
More details regarding the developed methods and materials will be published by Professor Obrovac and his team in the coming months.
