Why is the Novonix share price leaping 11% on Thursday?

It's proving to be a good day for the ASX 200 tech stock.

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Key points
  • The Novonix share price is soaring 11% on Thursday 
  • Many of the battery technology and materials company's tech peers are also recording notable gains today 
  • As are many ASX 200 battery metals stocks 

The Novonix Ltd (ASX: NVX) share price is leaping upwards today, gaining back its Wednesday losses and then some to mark its highest point in nine weeks.

That's despite no word having been released by the company since late last month.

Right now, the Novonix share price $3.27, 10.85% higher than its previous close.

For comparison, S&P/ASX 200 Index (ASX: XJO) has lifted 0.87% so far today while the company's home sector – the S&P/ASX 200 Information Technology Index (ASX: XIJ) – is up 1.28%.

Let's take a closer look at what might be driving the battery materials and technology share higher on Thursday.

A graphic showing a businessman running up a white upwards rising arrow symbolising the soaring Magellan share price today

Image source: Getty Images

What's going right for the Novonix share price today?

The Novonix share price is taking off today despite the company's silence. However, it's far from alone in its gains.

Many ASX 200 tech shares are following the stock's lead and rocketing higher today.

The Novonix share price is its sector's top performer, with that of Life360 Inc (ASX: 360) not far behind having gained 9.68%.

Meanwhile, shares in Block Inc (ASX: SQ2) and Megaport Ltd (ASX: MP1) are up 8.80% and 5.02% respectively.

Their gains follow a strong session overnight on the tech-heavy Nasdaq Composite Index (NASDAQ: .IXIC) that saw the index lift 2.9%. That came amid news that US inflation slowed in July, likely bolstering hopes the Federal Reserve might ease up on rate hikes, as Reuters reports.

On the other end of the market, shares involved in battery metals are leading the S&P/ASX 200 Materials Index (ASX: XMJ). Their strong performance might be rubbing off on the battery-focused tech stock.

It comes amid reports that China saw its best month yet for electric vehicle (EV) sales in June. More than 570,000 EVs went to new homes in the nation over the course of the month, as my Fool colleague Bernd reports.

Still, the Novonix share price's Thursday rise hasn't been enough to boost it back into the longer-term green.

Shares in the company have fallen nearly 64% since the start of 2022. It's also 17% lower than it was this time last year.

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Block, Inc., Life360, Inc., and MEGAPORT FPO. The Motley Fool Australia has positions in and has recommended Block, Inc. The Motley Fool Australia has recommended MEGAPORT FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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