Novonix (ASX:NVX) share price down despite Phillips 66 technology development agreement

Novonix has big plans…

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Key points

  • Novonix has signed a technology development agreement with Phillips 66
  • The two companies are aiming to commercialise next-generation anode materials for lithium-ion batteries
  • This is part of its plan to establish a North American supply chain to power the growing battery sector and facilitate a sustainable future

The Novonix Ltd (ASX: NVX) share price is falling on Thursday despite the release of a positive announcement.

In afternoon trade, the battery materials company’s shares are down 1% to $9.14.

What did Novonix announce?

This morning Novonix announced a technology development agreement with US energy giant and major shareholder Phillips 66.

According to the release, the two parties will work together to advance the production and commercialisation of next-generation anode materials for lithium-ion batteries.

The release notes that the agreement will see Phillips 66 and Novonix leverage their industry-leading positions, as well as existing intellectual property and research and development capabilities, to drive commercial development of optimised feedstocks and lithium-ion anode materials with reduced carbon-intensive processing.

Phillips 66’s Vice President of Energy Research & Innovation, Ann Oglesby, commented: “This agreement builds on our strategic investment in NOVONIX and is a natural next step for two companies committed to innovation and a lower-carbon future. It sets the framework for the companies to work closely and collaboratively to accelerate the development of next-generation materials for the U.S. battery supply chain.”

This sentiment was echoed by Novonix CEO, Chris Burns.

He said: “We are excited to further our relationship with Phillips 66, and together we plan to develop integral processes, from manufacturing precursor materials to producing high-capacity long-life synthetic graphite anode material intended to improve battery performance, lower cost and decrease environmental impact.”

“We believe NOVONIX is currently the only supplier with plans to provide large volumes of synthetic graphite anode material in the U.S., and this partnership will accelerate our mission to establish a North American supply chain to power the growing battery sector and facilitate a sustainable future,” he added.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. 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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