The Novonix Ltd (ASX: NVX) share price is experiencing high levels of volatility.
Earlier today, the battery materials and technology company dropped as much as 11% to around $3.60. However, it has since rebounded 13% from that 52-week low. It's now 0.25% in the green at $4.07.
The S&P/ASX 200 Index (ASX: XJO) is suffering from elevated selling by investors at the moment. There is a lot of market focus on high inflation and the potential of rising interest rates.
At the time of writing, the ASX 200 is down by 1.14%. But, who knows what is going to happen next?
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Is the Novonix share price an opportunity?
While Novonix may have regained the lost ground of the day, it is still down significantly over longer timeframes. Over the past month, Novonix shares have fallen by 35% and since the start of the year, the Novonix share price has fallen by around 60%.
The broker Morgans currently has a rating of 'hold' on the business, with a price target of $4.88. That implies a possible rise of around 20%. Morgans noted that the cost of the recent listing onto the NASDAQ of a few million dollars was a one-off, which impacted its earnings. The business started trading on the NASDAQ at the start of February 2022.
Operational progress
One of the recent highlights from the company earlier this year was the closed anode material supply agreement and strategic investment in US-based KORE Power. Novonix will be the exclusive supplier of graphite anode material to KORE Power's US operations. Novonix agreed to invest US$25 million for an approximate 5% stake in KORE Power. The deliveries will start in 2024.
It is continuing to engage with Samsung SDI and Sanyo and other tier 1 cell and automotive manufacturers for capacity planning for the next production facility.
A technology development agreement was signed with Phillips 66 to leverage both parties' expertise to collaborate on "the development and optimisation of feedstock and anode processing with the goal of higher performance, lower carbon intensity materials".
It also said that it's continuing to engage and progress relationships with multiple international companies for potential technology partnership opportunities and monitor clean energy policies in North America and Europe.
In terms of the battery technology solutions activities, it said it has seen continued strong revenue growth each quarter with expansion of hardware sales and research and development service offerings by adding and growing key strategic accounts.
With the Emera energy storage system project, it is assembling four full-scale pack prototype systems for testing with Emera.
Regarding the cathode synthesis technology activities, it said it has been expanding its internal cathode development team and capabilities.
