NVNXF: Infrastructure Bill, Auto Manufacturer EV Commitments & Gigafactories All Support Positive Outlook

By M. Marin



Novonix (OTC:NVNXF) is an integrated developer and supplier of high-performance materials, equipment and services for the global lithium-ion battery industry. The company is leveraging its proprietary technology to process and develop critical materials and technology for the global lithium-ion battery industry, beginning with anode materials.

We believe the recent infrastructure bill underscores and potentially expands prospective opportunities for Novonix, an integrated developer and supplier of high- performance materials, equipment & services for the global lithium-ion battery industry. The bill envisions the expansion of the domestic EV charging station infrastructure and other positives for electric vehicles (EVs). Reflecting the anticipated rise in EV sales and installations of electric storage systems (ESS), among other factors, the need for lithium-ion batteries is expected to continue to grow significantly.

Ambitious Plan to Scale Production

Reflecting the anticipated sector growth outlook, many battery producers, as well as automotive manufacturers, plan to construct gigafactories. Another factor that signals the rising interest in and commitment to EVs, in our view, is that GM has introduced its Factory ZERO, which also bodes well, we believe, for increased EV commitments by other automotive manufacturers. Factory ZERO is an all-electric facility. It reflects GM’s commitment to continue to transition its business to EVs, we believe. NVX is expanding its production capacity to meet the expected growth in demand.

Through its operating units – Novonix Anode Materials, Novonix Cathode Materials and the Novonix Battery Technology Solutions (BTS) divisions – Novonix is leveraging proprietary R&D to develop these key materials. Cathode and anode materials are critical components of lithium-ion batteries and both Novonix Anode Materials and Novonix Cathode Materials are expected to play key roles in the growing demand for batteries. Novonix had cash of about Aus$291 million at the end of calendar 3Q21 to support its development efforts.

Positive takeaways strategic relationship & new board member

Moreover, Phillips 66’s recently acquired 16% stake in the company is also a positive for Novonix, we believe, that will provide access to important materials and expertise. Novonix has added Phillip’s nominee to its board. Phillips 66 nominee, Zhanna Golodryga, is a senior executive with extensive experience in the energy and IT spaces.

The company intends to pursue an uplisting of its shares to the Nasdaq. This would boost awareness of Novonix within the investment community, we believe, and likely expand the pool of potential investors in the shares. The shares were also recently added to the S&P/ASX 300 index, which is intended to provide investment access to the Australian equity market.

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