The Novonix Ltd (ASX: NVX) share price is soaring to another new all-time high.
At time of writing, the ASX lithium-ion battery company is trading for $6.22 per share, up 3.67% in intraday trading, having earlier posted gains of more than 8%.
Below, we look at what been driving the Novonix share price to a series of new records.
What’s driving the extended run higher?
The Novonix share price has set a number of new record highs over the past month.
While there are company specific factors helping drive the company’s valuation higher, it also looks to be benefiting from rapid growth in the demand outlook for lithium-ion batteries. These are among the top options to power the expected explosion in electric vehicles (EVs) numbers over the coming years.
In the first 2 weeks of September alone, booming demand for lithium saw technical and battery grade lithium carbonate prices rocket by more than 20% in the Chinese domestic market, according to data from Bench Mark Minerals.
Battery grade lithium prices have now soared 215% in 2021.
As for the Novonix share price? It’s up 408% in 2021.
Another tailwind for Novonix shares is the reshuffle in the S&P/ASX Indices announced by S&P Dow Jones a few weeks ago. That reshuffle sees Novonix join the S&P/ASX 300 Index (ASX: XKO), effective as of market open this morning.
Its inclusion in the ASX 300 may not directly impact retail investors. However, it will open the door to some institutional funds which are limited to investing in the top 300 ASX shares.
Novonix share price snapshot
It’s been a banner year for Novonix investors, with shares up 408% year-to-date and 72% in the past month alone.
By comparison, the All Ordinaries Index (ASX: XAO) is up 9% in 2021.
The steady run higher has seen Novonix’s market capitalisation exceed $2.4 billion.