The Novonix Ltd (ASX: NVX) share price took off today despite the broader market’s suffering.
Fortunately for Novonix shareholders, the company’s stock dodged the carnage. As of Thursday’s close, the Novonix share price is $6.82, 3.65% higher than it was at the end of Wednesday’s session.
So, what drove the battery-focused graphite and graphite anode producer’s shares to gain on Thursday? Let’s take a look.
Novonix share price higher on Thursday
Novonix shares had a great day despite no news having been released by the company. And making the gain more unusual is the fact it’s actually not that unusual.
The Novonix share price has gained 30% in the last 3 weeks, but the company hasn’t uttered a word of price-sensitive news since August.
Also interestingly, there doesn’t seem to be a broader catalyst for Novonix’s movements today. In fact, many of its fellow battery technology shares spent the day in the red.
Lithium-sulphur battery technology company and ASX newbie Li-S Energy Ltd (ASX: LIS) saw its share price plunge 3.1% lower today. At the same time, that of lithium supplier, boron producer, and purchaser of formerly ASX-listed Galaxy Resources, Orocobre Limited (ASX: ORE) fell 5.9%.
However, there are some happenings that could explain what went on with the Novonix share price on Thursday.
For one, its surge might be a delayed reaction to the lithium rally the ASX experienced this week.
Novonix doesn’t deal in lithium. Though, as a battery technology company, it tends to run in the same packs as lithium producers.
ASX lithium shares rallied earlier this week, boosted by the increasing price of lithium and news from electric vehicle giant Tesla Inc (NASDAQ: TSLA). Tesla saw its value surpass $1 trillion after Hertz decided to add 100,000 Tesla cars to its rental fleet.
Additionally, the Australian Government pledged to reach net-zero carbon emissions by 2050 earlier this week.
The government’s plan focuses heavily on developing new low emissions technology. Thus, market watchers might have assumed stocks like Novonix could benefit from it.
While there’s no guarantee that either of the above happenings helped boost the Novonix share price today, its shareholders will likely be glad to have dodged the ASX’s sluggishness on Thursday.