Novonix Ltd (ASX: NVX) shares are catching the eye on Wednesday morning.
In morning trade, the battery materials and technology company's shares are up 3.5% to 73 cents.
Why are Novonix shares charging higher?
Investors have been buying the company's shares this morning after it announced a deal with ICoNiChem Widnes.
ICoNiChem Widnes, which is based in the UK, is a world leader in the production and commercialisation of cobalt and nickel salts. It has produced inorganic salts of cobalt and nickel in the North West of England uninterrupted for over 40 years.
According to the release, the two parties have signed a Joint Collaboration Agreement focused on the development of nickel-based cathode active materials (CAM).
In addition, the release reveals that Novonix and ICoNiChem have been selected for funding under the 2024 Canada-UK critical minerals call for proposals. This is focused on advancing projects related to critical minerals essential for industries like renewable energy, electric vehicles, and electronics.
To support their participation in the project, Novonix's Canadian division is receiving advisory services and up to C$127,928 in funding from the National Research Council of Canada Industrial Research Assistance Program (NRC IRAP).
This two-year project aims to further improve the sustainability of the Novonix all-dry, zero-waste technology by incorporating recycled metal feedstock, such as cobalt and nickel carbonates and oxides, into the process.
The release notes that ICoNiChem will provide various recycled materials, including cobalt and nickel carbonates or oxides, to compare and demonstrate optimal performance in cathode powders.
The project will utilise Novonix's cathode pilot line, as well as other services, to support the characterisation of project materials including their physical and electrochemical performance. Materials will then be built into full scale pouch cells to benchmark performance relative to other leading cathode materials.
Management commentary
Commenting on the agreement, Novonix's CEO, Dr. Chris Burns, said:
NOVONIX will utilize its patented all-dry, zero-waste synthesis process to synthesize, test, and analyze cathode active materials that will incorporate ICoNiChem's recycled cobalt and nickel. Our involvement reflects our continued commitment to advancing sustainable solutions, reducing cathode processing cost, and strengthening the critical mineral supply chain across North America, the UK, and beyond.
ICoNiChem's managing director, Berk Sengul, adds:
This is a fantastic opportunity to work with a world class company like NOVONIX to develop a UK supply chain for nickel-based cathode active materials. The project will strengthen ICoNiChem's position as a global player in cobalt and nickel materials.
Management notes that upon the successful completion of milestones, Novonix may enter into commercial agreements for ICoNiChem products with the goal of integrating recycled feed into its CAM production processes moving forward.
