Novonix share price slips despite "extremely promising progress"

The technology and materials sectors are also down today.

| More on:
A young woman looks at something on her laptop, wondering what will come next.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points

  • Novonix released its quarterly report today 
  • Its Battery Technology Solution revenue is up 93% on the previous quarter 
  • The Biden Administration has selected Novonix for a $150 million grant 

The Novonix Ltd (ASX: NVX) share price is slightly in the red today. The battery materials and technology company today released a quarterly report.

Novonix shares are currently down 0.8% and fetching 92.75 cents. For perspective, the S&P/ASX All Technology Index (ASX: XTX) is sliding 0.32% today. The S&P/ASX 200 Materials Index (ASX: XMJ) is also down 1.32%.

Let's take a look at what Novonix reported to the market today.

What did Novonix report?

Highlights of the unaudited quarterly report ending 31 March 2023 include:

  • Battery Technology Solution revenue of US$2.57 million (A$($3.877), up 93% on previous quarter
  • US $6.95 million capital expenditures on Riverside facility
  • Total cash balance of US$78.7 million

Novonix makes graphite anode materials used in lithium-ion batteries for electric vehicles (EV).

During the quarter, Novonix entered a joint venture with TAQAT development company (TAQAT).

This will enable the company to produce battery materials for EV and energy storage in the Middle East North Africa Region.

Another notable highlight was being selected to receive a $150 million grant from the Biden Administration.

At this stage, the Department of Energy has issued terms of conditions to grant awardees including Novonix.

Novonix also progressed site selection process for a new facility to produce up to 75,000 tpa of high-performance battery grade synthetic graphite.

The Battery Technology Solutions (BTS) division recorded strong revenue growth amid the expansion of hardware sales and research and development service offerings.

This division, along with Emera Technologies, advanced the development of a battery storage technology project.

Management commentary

Commenting on today's report, Novonix CEO Dr Chris Burns said:

This quarter has seen extremely promising progress on all fronts of our business. We have demonstrated our Generation 3 furnace technology performance in meeting all specification targets for our GX-23 grade of synthetic graphite product while continuing to sample different volumes of materials to various customers.

Our cathode development team has also produced cathode material from our proprietary dry process that matches the performance of a leading commercial reference material in full cell testing.

Lastly, we continue to see that the U.S. IRA legislation has focused OEMs and cell manufacturers on localized supply in North America, which is benefiting us in our discussions with potential customers.

Novonix share price snapshot

The Novonix share price has lost nearly 83% in the last year. In the last month, Novonix shares have risen nearly 3%.

Novonix has a market capitalisation of about 448 million based on the latest share price.

Motley Fool contributor Monica O'Shea has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Technology Shares

A man sits thoughtfully on the couch with a laptop on his lap.
Technology Shares

This ASX tech stock rocketed 60% in March! Can it keep on delivering?

After soaring in March, the ASX tech stock is now up 169% since this time last year.

Read more »

Five happy friends on their phones.
Share Market News

Goldman Sachs says these ASX tech stocks can rise 18% to 30%

The broker sees big returns on offer from these shares.

Read more »

A guy helps a girl lift a couch, both are laughing.
Technology Shares

3 of the best ASX tech shares to buy and hold until 2030

I think these stocks have exciting futures.

Read more »

A young woman uses a laptop and calculator while working from home.
Technology Shares

If I'd put $5,000 in Block shares 5 months ago, here's what I'd have now

Was it a good idea to invest in this payments stock five months ago?

Read more »

Close up of a sad young woman reading about declining share price on her phone.
Technology Shares

Why is the Brainchip share price sinking over 7% today?

What's going on with this tech stock on Wednesday?

Read more »

woman working on tablet
Technology Shares

Missed out on Nvidia? My best ASX tech stock to buy and hold

Do you have FOMO after the US chip maker's share price rocketed? Here's an Aussie company worth backing instead.

Read more »

Three businesspeople leap high with the CBD in the background.
Technology Shares

Guess which ASX small-cap stock is rocketing 45% on 'pivotal moment'

Investors have responded very positively to an announcement.

Read more »

A man looking at his laptop and thinking.
Technology Shares

Why are these ASX tech shares getting smashed today?

Owners of these two stocks are missing out today.

Read more »