Why is the Novonix share price on a rollercoaster today?

The Novonix Ltd (ASX: NVX) share price kicked off early trading well into the green, up 1.6% to 62 cents apiece.

Shares in the All Ordinaries Index (ASX: XAO) battery technology company closed up 10.9% yesterday trading for 61 cents.

In slightly later morning trade on Tuesday, shares have given back those early morning gains and are swapping hands for 60.5 cents apiece, down 0.8%.

For some context, the All Ords is up 0.5% at this same time.

This comes following the release of Novonix’s fourth-quarter update covering the three months ending 31 December.

Here are the highlights.

Novonix share price in flux as first production nears

The Novonix share price is on a bit of a rollercoaster after the company reiterated its intentions to commence commercial production of synthetic graphite anode materials in late 2024.

Novonix plans to produce an initial 3,000 tonnes per annum (tpa) of the materials, used in lithium-ion batteries, from its Anode Materials plant, located in the US state of Tennessee.

Among the highlights of the quarter just past, Novonix finalised a US$100 million grant from the US Department of Energy (DOE) Office of Manufacturing and Energy Supply Chains and progressed with anode customer sampling and discussions.

In its Battery Technology Solutions segment, the company said it continued its development of artificial intelligence and machine learning models and advanced its cathode materials development.

Commenting on the progress that sees the Novonix share price seeking direction today, CEO Chris Burns said, “We delivered key milestones on four main priorities.”

He cited:

• Maintaining the company’s technological lead in the battery materials sector
• Progressing and validating its Generation 3 furnace technology at mass production scale
• Sampling and working with tier one customers
• Securing financing in the form of the DOE office of Manufacturing and Energy Supply Chains US$100 million grant in the fourth quarter

Burns added:

Our first-in-the-world graphitisation technology continues to attract attention from tier one customers looking for a localised and more sustainable anode material supplier. China highlighted the urgency of localisation efforts with its announcement in the fourth quarter on export controls for graphite.

Looking ahead, Burns said, “We believe that 2024 will be a landmark year.”

As at 31 December, the company held $79 million in cash.

How has the All Ords battery tech company been performing?

It’s been a tough year for the Novonix share price, with the stock down 69% over the past 12 months.

The post Why is the Novonix share price on a rollercoaster today? appeared first on The Motley Fool Australia.

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Motley Fool contributor Bernd Struben 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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