The Novonix Ltd (ASX: NVX) share price was one of the standout performers on the ASX today, finishing the day 76.64% higher at $1.21. This rise takes the company’s current market capitalisation to just under $260 million.

Novonix is an integrated developer and supplier of materials, equipment and services for the global lithium-ion battery industry.

The company has operations in the US and Canada, and sales in more than 14 countries across the globe. Its customer base comprises leading global brands like Samsung, Apple, Honda, Panasonic, and Sanyo.

What caused the Novonix share price to surge?

This morning, Novonix revealed it has developed an advanced cathode material manufacturing method using its proprietary dry particle microgranulation (DPMG) technique. The manufacturing method relates to new single crystal cathode materials and processes.

The breakthrough of the DPMG technique was reported to the market on 15 May 2020. The company believes that today’s announcement further demonstrates the commercial application of DPMG.

Single crystal cathode materials have reportedly demonstrated outperformance over the current standard, possessing enhanced energy density and ultra-long life when used in electric vehicles (EVs) and energy storage systems.

The significance of single crystal cathode was highlighted in The Journal of The Electrochemical Society. A 2019 paper published by Professor Jeff Dahn and his team concluded that cells of this type should be able to power an EV for over 1.6 million kilometres and last at least 2 decades in grid energy storage.

The new single crystal cathode materials and DPMG method were developed by the Professor Mark Obrovac Research Group at Dalhousie University. This group has been funded by Novonix in partnership with the Canadian government.

Under the commercialisation arrangements with Professor Obrovac and Dalhousie University, Novonix owns the intellectual property rights to the new single crystal cathode technology on an exclusive and royalty-free basis.

Novonix, through its wholly-owned subsidiary Novonix BTS, has filed a patent application to protect these new single crystal cathode methods. This is on top of the patent applications already filed to protect the DPMG process.

What now?

Commenting on today’s update, Novonix managing director Phil St Baker said:

The Single Crystal Cathode development complements NOVONIX’s PUREgraphite anode product, both addressing the ultra-long-life battery performance requirements critical to the achieving the million-mile battery life being sought by leading EV automakers.

Meanwhile, Professor Mark Obrovac, lead inventor of the DPMG and new single crystal cathode materials, shed some light on the research project by stating:

A major focus of my lab’s research is the development of elegant dry processing methods for battery materials that are amenable to scaling, while simultaneously increasing yields, eliminating waste, and enabling the use of inexpensive feedstocks. Along the way we found out that these new methods can enable the synthesis of new advanced materials with properties that have not been previously accessible by more conventional methods. This has created a tremendous opportunity for the advancement of practical battery materials.

More details regarding the developed methods and materials will be published by Professor Obrovac and his team in the coming months. 

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Motley Fool contributor Cathryn Goh 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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The Australian share market has just started the week in sensational form.

At the close of play the S&P/ASX 200 Index (ASX: XJO) was up 2.45% to 6,144.9 points and the All Ordinaries index (ASX: XAO) was up 2.4% to 6,262.9 points.

While a large number of shares on these indices recorded strong gains, two stood out with particularly impressive gains.

Here’s why these two ASX shares smashed the market on Tuesday:

Credit Corp Group Limited (ASX: CCP)

The Credit Corp share price jumped 15.5% to $20.94 on Tuesday. This was despite there being no news out of the debt collector. However, prior to today, Credit Corp’s shares were down 52% from their February high. This could mean that bargain hunters were swooping in today on the belief that its shares had been severely oversold during the pandemic.

Credit Corp’s shares were sold off over the last few months amid concerns that it might be hard to collect debts during the crisis. So, with things appearing to be a lot better economically than first feared, its collections may not end up being impacted as greatly as its share price weakness implied. In addition to this, thanks to its $120 million equity raising in April, Credit Corp is well-funded and able to ride out this storm.

Zip Co Ltd (ASX: Z1P)

The Zip Co share price was back on form and surged almost 16% higher to $6.54 today. It appears as though investors were taking advantage of a pullback in its share price late last week to top up their positions. That share price weakness was driven by profit taking after an incredible rise following the announcement of its expansion into the $5 trillion U.S. retail market.

Today’s rebound means that Zip Co’s shares are now up 85% since the start of the year. One broker that doesn’t believe the gains are over is Morgans. Last week the broker retained its add rating and lifted its price target on the payments company’s shares to $7.00. It was pleased with its acquisition of QuadPay and believes it is a low risk way to enter the key market.

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James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of ZIPCOLTD FPO. 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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