The Novonix Ltd (ASX: NVX) share price is sliding today.
Shares in the All Ordinaries Index (ASX: XAO) battery technology company were up 2.1% in early morning trade before reversing course.
At the time of writing, the Novonix share price is down 1.4% at 71 cents. For some context, the All Ordinaries is down 1.1% at this same time.
This follows the release of the company's quarterly update for the three months to 30 September.
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Novonix share price wobbles on progress update
The Novonix share price has failed to get a boost after the company reported on progress in its Anode Materials segment. Novonix noted it achieved key milestones, which it said had "established a pathway to profitable anode material production in the United States".
The company is engaged in active negotiations with the US Department of Energy (DOE) on grant and term conditions. And management said it had progressed with its anode customer discussions along with its National Association of Manufacturers (NAM) operational targets.
As for Novonix Battery Technology Solutions, the company said it continued to build a strong pipeline with distributors to support revenue growth for hardware sales.
Highlights included commissioning a cathode pilot line and securing US$2.2 million from the Canadian government for cathode and data product R&D.
The quarter also saw Novonix announce its collaboration with SandboxAQ to develop breakthrough AI solutions for battery technology. The battery tech segment delivered US$1.8 million in revenue over the quarter.
As a beneficiary of the US Bipartisan Infrastructure Law (BIL), Novonix was also selected to receive US$150 million for a greenfield project. That's intended to produce an initial 30,000 tonnes per annum (tpa), with additional installed facilities and infrastructure to support expansion and supply the EV battery supply chain in the United States.
As at 30 September, Novonix had a cash balance of US$87 million.
On the expenditure front, the company invested US$2.9 million on production assets at its Riverside facility in Tennessee. It also spent US$460,000 on its cathode pilot line in Nova Scotia.
What did management say?
Commenting on the results that have yet to lift the Novonix share price, CEO Chris Burns said:
We met the target engineering specification of our Generation 3 furnace technology at mass production scale, a first in the world technology and a breakthrough in the ability to cost-effectively graphitize materials in the most environmentally sustainable way…
We are also very excited about the progress made in commissioning our cathode pilot line and the results from a third-party engineering study on our all-dry, zero waste cathode synthesis process…
Looking ahead, Burns added:
We expect our balance sheet and cash position to support our operating expenses into 2025, at which time we anticipate our revenues to materially increase from our synthetic graphite production.
Novonix share price snapshot
With another day in the red, the Novonix share price is now down 50% in 2023.
