What’s boosting the Novonix share price on Wednesday?

The Novonix Ltd (ASX: NVX) share price is on the move on Wednesday morning.

At the time of writing, the battery materials and technology company’s shares are up over 2% to $2.52.

Why is the Novonix share price rising?

Investors have been bidding the Novonix share price higher today after the company released an announcement.

According to the release, the company has opened its new pilot production facility in Nova Scotia, Canada, which aims to position Novonix as an industry leader in cathode technology.

Management notes that the program will be housed in a newly opened, 35,000-square-foot facility and leverage Novonix’s all-dry cathode synthesis technology to pilot its patent-pending technology for material production with the target of servicing the rapidly expanding electric vehicle (EV) and energy storage sectors.

It also highlights that the pilot scale facility will allow the company to demonstrate the feasibility of large-scale production, with the production target of up to 10 tonnes per annum.

This could be great timing. With over 50% of all new car sales predicted to be EV by fiscal 2030, according to BloombergNEF, millions of tonnes of anode and cathode material will be needed.

Novonix founder and CEO, Chris Burns, commented:

Launching our cathode pilot facility is another significant step in NOVONIX’s efforts to pioneer a North American battery supply chain and revolutionize the sector with high quality materials and more efficient production methods. NOVONIX is committed to enhancing the production of cathode material through its proprietary process while providing scalable solutions that address skyrocketing battery materials demand.

Darcy MacDougald, president of Novonix Battery Technology Solutions, added:

We’re expecting to have the pilot line operational shortly after opening. Our goal is to demonstrate our technology at scale in the first year. NOVONIX continues to innovate, and the launch of this pilot line will help us drive the shift to EV battery and energy storage forward.

The post What’s boosting the Novonix share price on Wednesday? appeared first on The Motley Fool Australia.

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More reading

• Why are Novonix shares listed on the Nasdaq as well as the ASX?
• Why did the Novonix share price jump 50% in October?
• Why is the Novonix share price gaining today?
• Why is the Novonix share price tanking 5% today?
• A major shareholder sold off most of its Novonix shares last week. What’s happening?

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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