The Novonix Ltd (ASX: NVX) share price sure has put on a stellar performance in 2023 so far.
In early afternoon trading, the battery technology and materials company is trading up 4.6% to $1.92.
But check this out. Since the start of the year, Novonix shares have ascended 35.5%. That compares to an 8.6% leap by the S&P/ASX All Ordinaries Index (ASX: XAO).
So, is Novonix on the comeback trail after a shocker in 2022, when its shares plummeted 84%?
Why is the Novonix share price soaring this year?
The only price-sensitive news out of this ASX tech stock so far this year is its December quarterly report, which was released on Tuesday.
As my colleague Brooke reported, the company spent US$18 million in cash and made US$2.17 million in receipts. As of 31 December, Novonix had a $99 million cash balance.
Investors weren't happy with the report and sold off Novonix shares heavily. The Novonix share price lost 6.2% on the day and it closed at $1.815.
But there must be something giving the stock this great momentum in the new year. A 35% bump in the share price is pretty impressive.
So, let's take a look at the latest positive news from the company.
Over the December quarter:
- Novonix officially opened its cathode pilot facility in Canada. It has now got all the required equipment, and during 1H 2023, it will be testing out its all-dry cathode synthesis technology
- The company received a US$150 million grant to help with the expansion of its anode materials division. It also formally applied for another loan with the Department of Energy
- It progressed engagements with tier 1 cell and automotive manufacturers through material sampling and qualification
- Novonix continued work at its Riverside facility ahead of the start of production. It already plans to increase Riverside's output targets to meet its supply agreement with KORE
- In its battery tech business, Novonix increased its cell prototyping capacity and launched a new proprietary cell testing and analytics software service for battery research and development
What's the outlook for Novonix?
Novonix has operations in both Canada and the United States. It provides advanced, high-performance materials, equipment, and services for the global lithium-ion battery industry.
It's already selling its products and services across 14 countries but the US is its primary focus.
There's no question Novonix has a huge addressable market. Millions of tonnes of anode and cathode material will be needed to service the burgeoning North American electric vehicle (EV) market. According to BloombergNEF, more than 50% of new car sales in the US will be EVs by fiscal 2030.
What makes Novonix unique is it claims to create materials and technologies to support longer-life and lower-cost batteries.
If the support that the Novonix share price has received so far in 2023 is any guide, investors might be thinking the worst of the company's recent troubles are behind them.
