Novonix (ASX:NVX) share price surges another 12%. Here's why

Shareholders are electrified by the prospects ahead following the company's recent news…

| More on:
Vanadium Resources share price person riding rocket indicating share price increase

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Novonix Ltd (ASX: NVX) share price obviously had more in the reserve tank after lifting off yesterday.

After emerging from its trading halt, the lithium-ion battery tech company gained 15.6% yesterday. The momentum has clearly rolled into trading today, with the company adding an additional 12.6% to its share price.

Big investment for the future

The ignition for investors' excitement appears to stem from the Novonix announcements yesterday. These included a capital raising program and a strategic investment, which go hand in hand.

Pertaining to the capital raising, Novonix is intending to issue 77,962,578 new ordinary shares. These shares are being priced at A$2.60 per share which, some quick math suggests, is roughly $202.7 million of capital raised.

It was revealed that United States energy company Phillips 66 (NYSE: PSX) will purchase the new Novonix shares, taking a 16% equity stake in the ASX-listed company in the process. This news catapulted the Novonix share price higher.

While Phillips 66 is an oil company, by and large, it also develops carbon anodes and materials for lithium-ion batteries using the by-products of its main business. Reportedly, the US company's rationale for the investment is to advance its commitment to pursuing lower-carbon solutions.

Additionally, the partial acquisition will support its endeavour to sure-up a domestic supply chain for the growing electric vehicle market in the US. In the process, Phillips 66 will be providing Novonix capital for expansion, according to the company:

Phillips 66's investment will provide Novonix with the capital needed to support growth and ongoing R&D as the group continues to scale synthetic graphite production and develop new technologies for higher-performance energy storage applications.

These efforts are certainly heavily in focus after the alarming climate report released by the IPCC yesterday. Essentially, the in-depth study called for a swift and decisive shift away from oil, gas, and coal within this decade.

Novonix share price in review

Any lucky shareholders that have retained their holdings in Novonix over the last year have enjoyed significant share price appreciation. The past year has seen the Novonix share price increase an astonishing 231%. Comparably, the S&P/ASX 200 Index (ASX: XJO) has climbed 23.5%.

Lastly, the market capitalisation on Novonix is now residing at around $1.58 billion.

Motley Fool contributor Mitchell Lawler 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.

More on Share Gainers

Man standing on rock next to turquoise salt lagoon.
Share Gainers

Here are the top 10 ASX 200 shares today

Investors enjoyed a great start to the trading week today.

Read more »

Smiling couple looking at a phone at a bargain opportunity.
Share Gainers

Why Austal, Breville, Telix, and Westgold shares are pushing higher today

These shares are starting the week positively. But why?

Read more »

A couple sits on a sofa, each clutching their heads in horror and disbelief, while looking at a laptop screen.
Share Gainers

Here are the top 10 ASX 200 shares today

Investors endured a rough Friday to close the trading week today.

Read more »

Man drawing an upward line on a bar graph symbolising a rising share price.
Share Gainers

Why Pointsbet, Qantas, Serko, and Yandal shares are pushing higher today

These shares are avoiding the market selloff today. But why?

Read more »

A happy young couple lie on a wooden deck using a skateboard for a pillow.
Share Gainers

These were the best performing ASX 200 shares in October

Did you own the best performers on the index last month? Here they are.

Read more »

The silhouettes of ten people holding hands with their arms raised against the sky, as the sun rises or sets in the background.
Share Gainers

Here are the top 10 ASX 200 shares today

ASX investors copped another rough session this Thursday.

Read more »

two men in hard hats and high visibility jackets look together at a laptop screen that one of the men in holding at a mine site.
Resources Shares

Mineral Resources share price rockets 16% on $1.1 billion news!

ASX 200 investors appear thrilled with Mineral Resources' latest news.

Read more »

Shot of a young businesswoman looking stressed out while working in an office.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a disappointing Wednesday session for ASX investors today...

Read more »