The Novonix Ltd (ASX: NVX) share price is soaring today to become one of the top performers on the ASX.
At the time of writing, the battery technology company’s shares are up 7.08% to $2.42.
In contrast, the S&P/ASX All Ordinaries Index (ASX: XAO) is 0.57% as the rally continues following upbeat investor sentiment.
Whatâs powering Novonix shares ahead?
Despite the company not releasing any announcements since its full-year results, the Novonix share price is surging today.
This comes as a number of lithium and battery tech shares are rising following recent broker upgrades.
The share price of lithium producer Pilbara Minerals Ltd (ASX: PLS) rocketed to an all-time high of $4.79 earlier in the day.
Similarly, the Allkem Ltd (ASX: AKE) share price also roared into uncharted territory.
As reported by my Fool colleague James, both Macquarie and Bell Potter believe lithium prices still have further to run.
This is due to the pent-up demand for electric vehicles and the widening supply gap in the market at the moment.
A report by the IEA anticipates that demand will grow by more than 40 times over the next two decades. Furthermore, graphite, cobalt and nickel are expected to follow, with demand accelerating to about 20-25 times.
Nonetheless, the global need for lithium is pushing ASX-listed materials shares to record levels.
The S&P/ASX 200 Materials (ASX: XMJ) sector is up 6% in the past week and could go higher given the positive outlook on the lithium industry.
Novonix share price snapshot
In the early part of 2022, the Novonix share price became the new âitâ child after rising almost 1,000% over the previous year.
However, the shares gradually tumbled throughout 2022 until hitting a year-to-date low of $1.94 in July.
While thereâs been a slight recovery over the last few months, the companyâs shares are down 73% for the year.
Novonix commands a market capitalisation of around $1.1 billion.
The post Why is the Novonix share price soaring 7% on Tuesday? appeared first on The Motley Fool Australia.
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More reading
- Who owns shares in ASX tech company Novonix right now?
- Here are the top 10 ASX 200 shares today
- Why is the Novonix share price soaring 11% today?
- Why is the Novonix share price smashing the ASX 200 on Wednesday?
- Slide continues: Novonix share price dumps 14% in 2 days
Motley Fool contributor Aaron Teboneras has positions in Pilbara Minerals Limited. 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 Scott Phillips.
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