The Novonix Ltd (ASX: NVX) share price has slumped 10% in early trade to follow up yesterday's 6.9% slump.
Image source: Getty Images
Why is the Novonix share price under pressure?
Novonix is a battery materials and technology company focused on the electric vehicles and grid energy storage. Shares in the Aussie company hit a record high of $4.23 in early trade yesterday before slumping lower through to the afternoon.
That trend has continued this morning with the Novonix share price sliding more than 12% lower in morning trade. It's currently trading at $2.79, down 10%. Today's share price fall has occurred despite no new announcements by Novonix following its quarterly update 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.
The Novonix share price initially jumped in early trade on Thursday before continuing to slide through to the market close. Today's session has started as yesterday finished with Novonix's market capitalisation falling below $1 billion.
What else is happening in the market?
Despite Novonix's disappointing start to the day's trade, the S&P/ASX 200 Index (ASX: XJO) has got off on the right foot.
The benchmark Aussie index has climbed higher this morning to pare back some of the losses from Thursday's session. A slump in ASX tech shares saw the ASX 200 record its worst day of trade since September 2020.
Service Stream Limited (ASX: SSM) and Domain Holdings Australia Limited (ASX: DHG) shares are leading the way with both ASX 200 shares up more than 7% this morning.
