Why did the Novonix (ASX:NVX) share price leap 6% on Thursday?

green fully charged battery symbol surrounded by green charge lights

The Novonix Ltd (ASX: NVX) share price surged higher today despite no news having been released by the company.

In fact, the last time the market heard price-sensitive news from Novonix was way back in August. But the silence seemingly hasn’t deterred the market from driving the company’s stock’s value higher.

As of Thursday’s close, the Novonix share price is $5.39, 5.89% higher than it was at Wednesday’s close.

Let’s take a look at what might have driven the Novonix share price today.

Quick refresher

Novonix is a battery and technology company that operates in two segments.

First, Novonix’s battery testing solutions develops battery testing equipment. It’s focused on using Ultra-High Precision Coulometry to help create reliable lifetime evaluation of lithium-ion cells.

Meanwhile, the company’s PUREgraphite business creates environmentally friendly graphite anode material for lithium-ion batteries.

What drove the Novonix on the ASX today?

There was no obvious reason for the rise in the Novonix share price today. However, it wasn’t alone in its gains. Many ASX battery material stocks were in the green today.

The share price of Core Lithium Ltd (ASX: CXO), which is working to supply lithium to the battery and electric vehicle industry, surged 17% today.

Lithium-sulphur battery company, Li-S Energy Ltd (ASX: LIS), was also up 2.8%. Finally, lithium carbonate supplier and boron producer, Orocobre Limited (ASX: ORE) gained 2.2%.

Perhaps battery-focused shares were spurred on by the potential for Australia to set a net zero emissions target ahead of next month’s COP 26 UN Global Climate Conference.

According to reporting by SBS, the Liberals and Nationals are at odds over setting a net zero emissions target for 2050, with Prime Minister Scott Morrison pushing to get a plan in place before the Glasgow summit.

Such discussions could be bolstering interest in companies working in the climate-friendly battery sector.

Not to mention, Thursday was a good day on the broader market. The S&P/ASX 200 Index (ASX: XJO) was up 0.7% and the All Ordinaries Index (ASX: XAO) gained 0.8%.

Novonix share price snapshot

Today’s gains are only the latest for the Novonix share price, which has been performing brilliantly on the ASX lately.

It has gained 334% since the start of 2021. It is also 376% higher than it was this time last year.

The post Why did the Novonix (ASX:NVX) share price leap 6% on Thursday? appeared first on The Motley Fool Australia.

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Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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