Novonix share price rockets 26% on $240m US Government grant news

The Novonix Ltd (ASX: NVX) share price is having a sensational day after returning from a trading halt.

In morning trade, the battery materials and technology company’s shares are up 26% to $2.68

Why is the Novonix share price rocketing higher?

Investors have been scrambling to buy Novonix and a couple of other US-based battery material shares on Thursday after they awarded a major US government grant.

This morning Novonix, Piedmont Lithium Inc (ASX: PLL) and Syrah Resources Ltd (ASX: SYR) were all individually selected to enter negotiations to receive grant funding from the U.S. Department of Energy (DOE) to strengthen the North American battery supply chain amid surging demand and growing calls to onshore these critical industries.

According to the release, in respect to Novonix, its Anode Materials division was selected to enter negotiations to receive US$150 million (A$240 million) in grant funding from the US DOE. Under the terms of the grant, the government funds must be at least matched by the recipient.

Management notes that these funds would be dedicated to the construction of a 30,000 tonnes per annum (tpa) U.S. manufacturing facility, including site selection, plant layout, and engineering design with capability for additional expansion.

Proud and ready

Novonix co-founder and CEO, Dr Chris Burns, was delighted with the news. He said:

We are proud to have been selected to negotiate this funding in recognition of our readiness to accelerate the domestic battery supply chain and meet growing global demand from the electric vehicle and stationary grid storage markets.

Since inception, our mission has been to enhance batteries through innovation and pave the way for the clean energy transformation. We are excited to partner with the DOE to further our mission of establishing a domestic supply chain for synthetic graphite used in lithium-based batteries and creating long-term sustainable value for our stakeholders.

The post Novonix share price rockets 26% on $240m US Government grant news appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro 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 Scott Phillips.

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