The Novonix Ltd (ASX: NVX) share price is soaring in midday trade. This comes after the company announced a partnership agreement with Emera Technologies on developing innovative battery technology.
At the time of writing, shares in the integrated developer and supplier of high-performance materials, equipment, and services for the lithium-ion battery industry are up 18.4% to $3.41.
What did Novonix announce?
The Novonix share price is rising after reporting a positive update that could open the door to new market opportunities.
In today's release, Novonix advised that it will collaborate with Emera Technologies to develop and manufacture energy storage systems. This will be conducted through Novonix's wholly-owned subsidiary, Novonix Battery Technology Solutions.
Both parties are developing battery pack systems to support microgrids in harnessing solar power to deliver direct to people's homes. The hope is this may lead to significant prospects within the North American market.
Novonix and Emera Technologies plan to field test the first lot of demo units sometime this year. This will build a base for future modifications that will further refine system specifics and design.
About Emera Technologies
Emera Technologies, a subsidiary of parent company Emera Inc, is an international energy holding company. The business unit is based in Halifax, Nova Scotia, and recorded assets of more than CA$32 billion in 2019.
The company focuses on developing new ways to deliver renewable energy to customers.
Last year, Emera Technologies launched its microgrid power and battery business, BlockEnergy. The first utility-owned, microgrid platform that is a plug-and-play energy system delivering distributed energy at residential community-scale homes.
Management commentary
Novonix co-founder and chief executive Dr Chris Burns welcomed the partnership, saying:
The BlockEnergy project is a great example of applying our technology to real life projects and developing systems with specifications not available currently in commercial products, and that have tangible downstream applications.
This project brings the opportunity to partner on not only the development but also manufacturing of new battery systems with significant market opportunities. The target market is not limited to the United States but will also include a focus on opportunities and customers here in Canada
Emera Technologies president and CEO Rob Bennett added:
We're really excited about this partnership and this project. We're developing something that doesn't exist today, that will help provide people with cleaner, more reliable energy, and we're able to capitalize on expertise at home in Nova Scotia to do that.
About the Novonix share price
Over the past few months, the Novonix has become the new 'it' player, rising an astonishing 174% at the turn of 2021.
Looking back at its performance of the past year, the company's shares hit a low of 18 cents in March. However, more recently in January, the Novonix share price reached an all-time high of $4.23.
Based on today's prices, the company commands a market capitalisation of around $1.18 billion.
