The Novonix Ltd (ASX: NVX) share price rocketed to all-time highs of $1.54 in June, taking its market capitalisation up past $350 million. The share price at the end of June finished at 87 cents, representing a 112% jump since the start of June.
Since the end of June, the Novonix share price has gone up even further, with the price currently sitting at 96 cents per share. Over the past year shares in Novonix are up 121%, compared to a measly 9.2% drop in the All Ords index.
What does Novonix do?
Novonix is a battery materials maker that develops and supplies materials, equipment and services to the global lithium-ion battery industry. The company is headquartered in Brisbane, with operations in the US and Canada and sales in 14 countries.
What pushed the Novonix share price higher in June?
The jump in the Novonix share price represents a remarkable turnaround for the company, which as recently as early April was trading at lows of 20 cents a share.
In June, a persistent stream of good news helped charge the battery maker’s run:
- On 9 June, information was released by the company regarding news that it had developed an advanced cathode material manufacturing method using its proprietary dry particle microgranulation (DPMG) technique. These crystals have demonstrated ultra-long life when used in electric vehicles (EVs) and energy storage systems. This caused the company’s share price to spike almost 77%.
- Throughout the month, there was also unrelenting talk that the company may be partnering with the US Government and Tesla, with an announcement to be made at the Tesla Battery Day. These rumours have caused huge spikes in the Novonix share price.
- On 23 June, the company announced that its retail entitlement offer was heavily oversubscribed with the board wanting to “recognize the support of the shareholders who took their rights in full and applied.”
Where to next for the Novonix share price?
The Novonix share price has continued to storm higher, gaining 11% on Monday, although it did lose some of these gains yesterday, dropping back by 7%.
Overall, Novonix is certainly going to be one to watch in the future, particularly now that the date for the ever-looming Tesla Battery Day has been set in stone for 15 September.
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Motley Fool contributor Daniel Ewing has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. 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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