The Novonix Ltd (ASX: NVX) share price finished Friday's session down a nasty 4.75% to $1.505. It was well below the performance of the S&P/ASX All Ordinaries Index (ASX: XAO) which closed 0.86% lower.
Over the past 12 months, the battery technology and materials company has lost 73.4% of its value.
But we should probably break this performance down into two parts.
In 2022, the Novonix share price fell by 84%. In 2023, it's up 6%.
Why is the Novonix share price rising in 2023?
There's been little price-sensitive news relating to this ASX tech share so far this year.
The last significant news was Novonix's quarterly activities report for December, which was released on 31 January. Investors weren't thrilled and the Novonix share price fell 6.2% on the day to close at $1.815.
So, without any positive news to explain why the Novonix share price is up, we can assume the stock is simply riding the wave of new momentum in the share market in 2023.
The S&P/ASX All Ordinaries Index (ASX: XAO) is up 6% year to date along with the Novonix share price.
What's the latest news from Novonix?
As my colleague Brooke reported, the December activities report revealed that Novonix had spent US$18 million during the quarter while taking in just US$2.17 million in receipts.
But the company was left with a $99 million cash balance, which it estimated would give it 11 quarters of funding.
On the positive side, Novonix has reported several advancements in its operations in Canada and the United States.
The company officially opened its cathode pilot facility in Canada and is now testing its all-dry cathode synthesis technology there.
Novonix is also expanding its Riverside facility in Chattanooga, Tennessee with the help of a US$150 million grant from the US Department of Energy. The aim is to produce 10,000 tonnes of synthetic graphite anode materials per annum.
In 2024, Novonix will begin exclusively supplying graphite anode materials to US company KORE Power.
The deal between Novonix and KORE is the first large-volume graphite contract between a US company and a US-based supplier. Therefore, it has broader significance in the context of America trying to establish a domestic battery supply chain to service the burgeoning US electric vehicles (EVs) market.
According to BloombergNEF, more than 50% of new car sales in the US will be EVs by fiscal 2030.
The five-year deal will begin with Novonix supplying 3,000 tonnes of graphite anode materials to KORE in 2024.
