The Novonix Ltd (ASX: NVX) share price has started the week in a positive fashion.
In afternoon trade, the battery technology company's shares are up over 6% to $6.82.
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Why is the Novonix share price charging higher?
Investors appear to have been bidding the Novonix share price higher today in response to the release of an announcement out of Sayona Mining Ltd (ASX: SYA).
According to the release, with the help of scientists from Novonix, the lithium developer has made lithium hydroxide from its Authier spodumene product that is the same quality as commercial battery-grade material.
The release notes that Novonix's scientists incorporated the sample into a common lithium battery cathode compound precursor (NMC622), which was used to make lithium‐ion coin half‐cells.
Positively, the results showed the discharge capacity of Sayona's hydroxide‐based cathode cells was the same as benchmark cathode cells using currently available commercial lithium hydroxide.
Is it too late to invest?
Despite today's gain, the Novonix share price is still down by over a third since the start of the year.
Unfortunately, though, the team at Morgans don't believe the Novonix share price has fallen enough to put it in the buy zone.
Morgans currently has a neutral rating and $4.88 price target on its shares, which suggests potential downside of approximately 28%.
