Wow! Novonix share price rebounds off a 52-week low to surge 11%

Novonix shares are on fire today, as are several battery and lithium shares.

| More on:
Team celebrating corporate success screaming with joy.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points

  • The ASX 200 is having a decent day today
  • But the Novonix share price is faring even better, bouncing almost 11% from the 52-week low we saw yesterday
  • It's also proving a good day for a number of other battery and lithium shares

It’s been a fairly positive day for the S&P/ASX 200 Index (ASX: XJO) and ASX shares so far this Friday. At the time of writing, the ASX 200 is up 0.22% at 6,543 points. But it’s been an even better day for the Novonix Ltd (ASX: NVX) share price.

Novonix shares are presently enjoying a 10.7% bounce to $2.38 each. It was only yesterday that this ASX battery technology share was recording a new 52-week low of $2.07 a share. That price was more than 82% off the all-time high of $12.47 a share that we saw back in December last year.

But Novonix shares are seemingly putting all of that behind them today.

So what’s going on here?

Why are Novonix shares jumping on an 11% rocket?

Well, it’s nothing out from the company itself, given Novonix has not released any news or announcements since 14 June.

However, we are seeing a bit of a trend forming on the ASX boards today. ASX battery and lithium shares are on fire this Friday.

In addition to Novonix’s move, we have Pilbara Minerals Ltd (ASX: PLS) up 6.8%, Core Lithium Ltd (ASX: CXO) up 7.7%, and Liontown Resources Limited (ASX: LTR) rising 11.1%.

This comes after a bullish prediction regarding lithium was aired yesterday.

As we covered at the time, broker Macquarie has upgraded its forecast for lithium prices. It “now expects spodumene prices to peak at US$4,900 a tonne in the September quarter”. As a result, Macquarie “has upgraded its short-term and medium-term forecasts by 8% to 13% per tonne”.

So perhaps it is this bullish prediction that has investors all riled up over lithium and battery shares today. Or perhaps investors just decided that the share prices of Novonix and others we were seeing yesterday were too cheap, and have bought back in today.

Whatever the reason, it’s certainly been a pleasing day for Novonix shareholders thus far on Friday.

At the current Novonix share price, this ASX battery share has a market capitalisation of $1.17 billion.

Motley Fool contributor Sebastian Bowen 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 recommended Macquarie Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Materials Shares

a man wearing a hard hat and a high visibility vest stands with his arms crossed in front of heavy equipment at a mine site.
Materials Shares

Why did the Lynas Rare Earths share price tumble in June?

We check how the rare earths producer fared last month.

Read more »

Woman in yellow hard hat and gloves puts both thumbs down
Materials Shares

South32 share price heads 8% south on high volumes, but why?

South32's shares are heading south today. But why?

Read more »

Broker looking at the share price on his laptop.
Broker Notes

Broker upgrade fails to stop the OZ Minerals share price from falling today

The copper price has dived on fears of a looming global recession.

Read more »

A young male investor wearing a white business shirt screams in frustration with his hands grasping his hair after ASX 200 shares fell rapidly today and appear to be heading into a stock market crash
Materials Shares

Why did the Sayona Mining share price crash 32% in June?

Last month was a tough one for this ASX lithium developer.

Read more »

A male investor sits at his desk looking at his laptop screen holding his hand to his chin pondering whether to buy Macquarie shares
Materials Shares

Can ASX lithium share Pilbara recover in July after slumping 22% in June?

One broker is predicting 90% upside for the lithium producer.

Read more »

a woman wearing a sparkly strapless dress leans on a neat stack of six gold bars as she smiles and looks to the side as though she is very happy and protective of her stash. She also has gold fingernails and gold glitter pieces affixed to her cheeks.
Gold

Here’s why the St Barbara share price shone 8% brighter today

What's going on with the gold miner on Tuesday?

Read more »

A person wears a roaring lion mask.
Materials Shares

Own Liontown shares? Here are 3 takeaways from the company’s investor presentation

What did today's presentation reveal?

Read more »

A mining worker wearing a white hardhat stands on a platform overlooking a huge mine as ASX 200 mining shares fall over the month of June
Materials Shares

Down 25% in a month, what is the outlook for the Allkem share price in July?

Could the lithium company's share price turn around in July?

Read more »