The Novonix Ltd (ASX: NVX) share price is on the move on Wednesday morning.
In early trade, the battery materials and technology company's shares are up a sizeable 7% to 85.5 cents.
Why is the Novonix share price rising today?
Today's gain appears to have been driven by the release of a positive announcement this morning.
According to the release, the company's Battery Technology Solutions division in Nova Scotia, Canada will receive up to C$3 million (A$3.47 million) in research and development funding and advisory services from the National Research Council of Canada Industrial Research Assistance Program (NRC IRAP).
Novonix revealed that it plans to use the funds to advance two important research and development initiatives aimed at enhancing its battery materials and technology projects.
These are its all-dry, zero-waste cathode materials development and pilot line, as well as a new technology to predict the lifespan of lithium-ion batteries. The latter will be supported by the company's recently announced collaboration with SandboxAQ which leverages its artificial intelligence-driven chemical simulation software.
Management commentary
Novonix's CEO, Dr. Chris Burns, was very pleased with the news. He said:
We are honored to receive this funding and grateful to NRC IRAP for their support. Lithium-ion battery tailwinds have accelerated quickly on the back of public policy support, increasing private sector investment, and strong electric vehicle demand. We expect this trend to grow, underscoring the increasing need for NOVONIX's materials technologies and advanced battery testing expertise that support cleaner high-performance materials.
Today's gain will be a welcome relief to shareholders after a terrible 12 months. Though, the Novonix share price is still down more than 50% since this time last year.
