Why is the Novonix share price soaring 11% today?

The Novonix Ltd (ASX: NVX) share price is shooting higher today, continuing to climb during afternoon trade.

Shares of the battery metals and technology company are currently trading 10.68% higher at $2.28 each, just under their intraday high of $2.29 a share.

The company’s home sector, the S&P/ASX 200 Info Technology Index (ASX: XIJ), is also up 2.83% today.

So let’s see what may be setting the Novonix share price alight today.

What’s going on with the Novonix share price?

There have been no announcements from the company since the end of August. However, it seems Novonix might be riding the wave of positive sentiment for ASX lithium shares on the market today.

Although Novonix isn’t strictly a lithium share, a core part of its business is developing technology for lithium-ion batteries.

The share prices of lithium miners Pilbara Minerals Ltd (ASX: PLS) and Allkem Ltd (ASX: AKE) hit new all-time highs today.

Pilbara is currently trading at its record price of $4.22 a share, up 6.84% on the day, while Allkem hit $15.02 a share this afternoon. It’s currently trading at $14.985 a share, 6.43% higher.

At a broader level, the Chinese spot price of lithium carbonate has also risen slightly since Friday last week, gaining 1.47% to 482500 RMB (AU$ 102,878) per tonne. However, it’s still trading significantly below its record high of 497500 RMB (AU$ 106,069) per tonne achieved in March.

Other indices are also in the green on Thursday, including the S&P/ASX 200 Index (ASX: XJO), up 1.6%, and the S&P/ASX 300 Metals and Mining Index (ASX: XMM), up 2.48%.

So it seems that the Novonix share price rally can be explained through broader movements in the market as optimism for lithium abounds.

Novonix share price snapshot

The Novonix share price is enjoying some time in the sun today amid shedding 75% this year to date. For context, the S&P/ASX 200 Index is down around 10% over the same period.

The company’s market capitalisation is around $1.1 billion.

The post Why is the Novonix share price soaring 11% today? appeared first on The Motley Fool Australia.

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More reading

• Why is the Novonix share price smashing the ASX 200 on Wednesday?
• Slide continues: Novonix share price dumps 14% in 2 days
• Why did the Novonix share price crumble 14% in August?
• Why is the Novonix share price slumping 6% on Thursday?
• Novonix share price lifts despite full-year loss deepening to $71 million

Motley Fool contributor Matthew Farley 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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