The Novonix Ltd (ASX: NVX) share price is having a sensational finish to the week.
In morning trade, the battery materials technology company's shares are up almost 15% to 78.5 cents.
Why is the Novonix share price shooting higher?
Investors have been buying the company's shares today after it provided an update on production from its proprietary, continuous induction Generation 3 Furnaces at its Riverside facility in Tennessee, United States.
Novonix previously reported that its high-performance battery grade synthetic graphite met specification targets from its Furnaces. Since then, production campaigns have been ongoing to provide both operating data and economic insight on this "breakthrough technology."
According to the release, in the most recent campaign, material was produced that met all specifications while also reaching the equipment design throughput targets.
Novonix intends to continue with production campaigns to collect more operational data and provide mass-production material for sampling to potential customers.
Why is this important?
The company points out that the achievement of these milestones highlights the potential of the continuous induction Furnace technology in meeting production targets at competitive cost while reaching high-energy efficiency targets with a near zero-emission process.
Novonix CEO, Dr. Chris Burns, commented:
The results of our ongoing production campaigns clearly demonstrate NOVONIX's path to profitable production through our first-in-the-world graphitization furnace technology. Over several production campaigns, the Furnaces delivered in-spec product at a mass scale reaching our target design throughputs.
Novonix also plans to increase its production target to 20,000 tonnes per annum (tpa), compared to the initial target of 10,000 tpa. Dr Burns adds:
The potential to expand the production output of Riverside to up to 20,000 tonnes per annum is an important opportunity for the Company's near-term growth plans with significant demand and strong progress in customer development.
The Novonix share price remains down by almost two-thirds over the last 12 months.
