The Novonix Ltd (ASX: NVX) share price is in the red this morning following the release of the company's latest quarterly update.
The S&P/ASX 200 Index (ASX: XJO) tech stock is currently down 5.94%, trading at $1.82.
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Novonix share price plummets on US$18m burn
Here are the key takeaways from the company's December quarter:
- Customer receipts reached US$2.17 million
- Novonix burned through US$18 million last quarter
- Ended the period with US$99 million of cash
- Announced US$150 million grant from the US Department of Energy
Novonix operated in the red last quarter as it worked to expand its businesses in anode materials, battery technology solutions, and cathode activities.
The major news from the tech favourite during the period was of a US$150 million government grant expected to go towards the expansion of its anode materials division.
Novonix also progressed engagements with tier 1 cell and automotive manufacturers through material sampling and qualification and formally applied for a loan under the DOE Loan Programs Office.
What else happened last quarter?
Last quarter wasn't so great for the stock. The Novonix share price tumbled 16.5% over the period.
Meanwhile, the company continued work at its Riverside facility ahead of the start of production. It also officially opened its cathode pilot facility.
At its battery tech business, it increased its cell prototyping capacity and launched a new proprietary cell testing and analytics software service for battery research and development efforts.
What's next?
Its activities don't appear to be slowing down.
Novonix plans to increase Riverside's production output targets from 10,000 tonnes per annum in 2023 to meet its supply agreement with KORE. That's expected to begin at around 3,000 tonnes annually next year and ramp to around 12,000 tonnes annually in 2028.
It also expects its new analytics software could be launched in beta for customers in the second quarter of 2023.
Finally, all pilot equipment has been received at the company's new facility. It's now being commissioned for internal testing of cathode material using the company's all-dry cathode synthesis technology in the first half.
Novonix share price snapshot
The Novonix share price has been on the up and up this year, gaining 30% year to date. For comparison, the ASX 200 has risen 8% in 2023 so far.
However, the stock is still 75% lower than it was this time last year. Meanwhile, the index has jumped 7% over the last 12 months.
