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The Novonix (ASX:NVX) share price is on a rollercoaster ride today

ASX tech share price rollercoaster
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The Novonix Ltd (ASX: NVX) share price has been on a rollercoaster ride in Wednesday’s trade. 

Shares in the Aussie lithium-ion battery group jumped to a new record high of $4.23 per share in early trading, before crashing to a low of $2.95. That’s a drop of almost 15%.

At the time of writing, the Novonix share price has recovered slightly and is currently trading at $3.34, down 7.5%.

Why is the Novonix share price wobbling today?

Novonix is an integrated developer and supplier of high-performance materials, equipment, and services for the lithium-ion battery industry.

In the absence of any fresh announcements to the ASX, could the volatile Novonix share price movement be down to the latest company announcement on 21 January?

In that release, Novonix advised its wholly owned US-based subsidiary, PUREgraphite, has been selected to receive a ~US$5.6 million grant by the US Department of Energy (DOE) for new technology development.

The grant funding will support the development of high efficiency furnace technology for lithium-ion battery synthetic graphite material.

Novonix chief executive, Dr Chris Burns, was positive about the grant. Dr Burns said the new furnace technology will be “industry leading” and “state of the art” in energy efficiency, environmental impact and capital cost.

Investors snapped up the company’s shares following that announcement, and the surge continued this morning before this afternoon’s dramatic plummet.

Foolish takeaway

Despite today’s rollercoaster ride today, the Novonix share price remains up 150 per cent this month.

Novonix has recorded steady revenue growth in recent years, with total income climbing from $0.10 million in June 2017 to $5.04 million in June 2020. The strong momentum throughout January has also seen above average trading volumes.

Novonix’s 5-day average trading volume is sitting at 9.3 million through to 27 January compared to an average of 3.2 million according to ASX data.

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Motley Fool contributor Ken Hall 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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