Why the Novonix (ASX:NVX) share price rocketed 36% higher to a record high

Here’s why the Novonix Ltd (ASX:NVX) share price is rocketing a massive 36% higher to a new high on Thursday…

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The Novonix Ltd (ASX: NVX) share price has been on fire again on Thursday.

In morning trade the shares of the integrated developer and supplier of high-performance materials, equipment, and services for the lithium-ion battery industry surged a further 36% to a record high of $2.84.

This latest gain means the Novonix share price has rocketed 78% in the space of just five days.

Why is the Novonix share price surging higher today?

Just two days since its last announcement, this morning Novonix announced another positive development.

According to the release, the company’s wholly owned U.S.-based subsidiary, PUREgraphite, has been selected to receive a ~US$5.6 million grant by the U.S. Department of Energy (DOE) for new technology development.

Novonix advised that the grant funding will support the development of a new, continuous high efficiency furnace technology for lithium-ion battery synthetic graphite material. PUREgraphite is partnering with Harper International and Phillips 66 for this funding opportunity.

The total project cost will be US$11.5 million, including PUREgraphite’s contribution of US$5.9 million which will be funded from existing reserves.

Novonix’s Chief Executive, Dr. Chris Burns, was very pleased to receive this funding.

He said: “We are excited to receive this show of support from the U.S. Government and to be working with Harper International and Phillips 66 on this project. This award demonstrates the commitment by the Government to support the establishment of a domestic supply of high-performance battery materials. It also highlights the expertise, progress, partners and technology we have assembled at PUREgraphite.”

“The new furnace technology to be developed under this award will be industry leading and state of the art in energy efficiency, environmental impact, and capital cost. This is all part of our roadmap for continued innovation to make the highest performance material at globally competitive costs, all based in the United States”, Dr. Burns added.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. 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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