The Novonix Ltd (ASX: NVX) share price is in the green on Friday, gaining 2% at the time of writing. It comes after the company dropped an announcement to the ASX minutes before the market closed yesterday.
The release details additional information on the US$150 million grant offered to the tech favourite last month. It also outlines the company's work to obtain the capital needed to expand its anode materials division.
Right now, the Novonix share price has gained 1.97% to trade at $2.59.
That's compared to the S&P/ASX 200 Index (ASX: XJO)'s 0.1% fall and the S&P/ASX 200 Information Technology Index (ASX: XIJ)'s 0.44% slump.
Let's take a closer look at the latest news from the battery technology and materials producer.
Image source: Getty Images
Novonix provides update on grant and financing opportunities
The Novonix share price is outperforming on Friday as market watchers likely catch up on yesterday's announcement from the company.
It pertained to the US$150 million grant offered to the battery giant by the United States Department of Energy (DOE). The grant is intended to support the expansion of the Novonix Anode Materials division's production of high-performance synthetic graphite anode materials.
The expansion project is currently expected to cost around US$1 billion between 2023 and 2025. It's should see the division producing 75,000 additional tonnes of synthetic graphite anode materials annually.
As previously noted, any funds offered under the grant must be matched by their recipient.
Novonix is actively working to secure financing to support the remainder of the expansion project's costs.
It's seeking out further government funding opportunities. It might also be eligible for the DOE's Loan Program Office Advanced Technology Vehicle Manufacturing program – which could provide debt support of up to 80% of the cost of a suitable project. But that's not all. Novonix continued:
If the company requires further financial support for its planned expansion it will continue to explore opportunities such as customer support, commercial debt, strategic investment, and capital from the private and public markets.
Novonix was one of a handful of ASX-listed battery-focused companies to be selected to negotiate with the department to receive various grants. The negotiations are expected to take several months and will cover project details, costs, milestones, and access to the grant funds.
The tech favourite's need for cash won't surprise eagle-eyed market watchers.
Auditors recently warned the company's dependence on raising cash to fund its expansion added to a "material uncertainty [potentially casting] significant doubt on the group's ability to continue".
Novonix share price snapshot
This year has been a disastrous one for the Novonix share price.
Despite reaching an all-time high last year, the tech stock has plunged 75% since the start of 2022. It's also currently 70% lower than it was this time last year.
Meanwhile, the ASX 200 has fallen 10% year to date and 8% over the last 12 months.
