Here's why the Novonix (ASX:NVX) share price stormed 10% higher today

It's been a buoyant start to the week for the battery technology company.

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The Novonix Ltd (ASX: NVX) share price has soared 10% in today's trading session.

The most immediate catalyst that could explain today's bullish price action can be traced back to late last week.

The battery materials and technology company released its quarterly report last Friday which initially saw shares in the company get sold down.

However, investors seem to have changed their tune after digesting the company's report over the weekend.

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Image source: Getty Images

Novonix share price recovers following quarterly report

Novonix released its quarterly activities and cash flow report to the market last Friday.

Initially, the company's report was greeted with investors selling down shares in Novonix.

However, Novonix also provided investors with a recap of its recent notable milestones.

In particular, the company highlighted the purchase of its new facility in Chattanooga, Tennessee. Novonix noted the new facility will provide the company with 400,000 square feet of additional space, boosting production by more than 8,000 tonnes of anode material each year.

Novonix also highlighted strong revenue growth and expansion of hardware sales and service offerings for the quarter.

The company noted $2.03 million in receipts from customers, compared to $1.28 million in the prior quarter.

As of 30 June 2021, Novonix also reported a cash balance of $136.6 million.

More on Novonix

Novonix develops and commercialises high-performance materials, equipment, and services for the lithium-ion battery industry.

According to the company, Novonix is the only qualified US-based supplier of battery-grade synthetic graphite anode material.

The company is mainly focused on electric vehicle and energy storage applications that require long life and high performance.

Snapshot of the Novonix share price

The Novonix share price has enjoyed a strong year thus far. Including today's price action, shares in the company have soared more than 134% since the start of 2021.

Novonix shares hit an all-time high of $4.23 in late January following a promising quarterly update. Since then the company's share price has been rather volatile, trading in a wide range.

However, July was a promising month for the Novonix share price. It followed the company announcing plans in late June to purchase a second facility.

At market close on Monday, the Novonix share price finished the session nearly 10% higher at $2.83, just shy of its intra-day high of $2.86.

Motley Fool contributor Nikhil Gangaram 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 Bruce Jackson.

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