Why the Novonix (ASX:NVX) share price is rocketing 20%

Could this be what's boosting the Novonix share price to new heights?

| More on:
A drawing of a white rocket streaking up, indicating a surging share pirce movement

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 is surging today despite silence from the company.

Right now, Novonix shares are trading for 19.95% more than they were at Friday's close, swapping hands for $4.93 apiece. That's a new record high for the company's stock.

While there's been no news from Novonix today, last week was a busy one for the battery technology company. Additionally, it managed to garner some attention from Australian media over the weekend. Finally, the materials sector as a whole is gaining today.

Let's take a closer look at the news from, and of Novonix, that might be boosting its share price today.

The latest from Novonix

The last time the market heard from Novonix was on Thursday when the company released its earnings for financial year 2021.

For the financial year just been, Novonix reported a 22.9% increase in revenue compared to that of the prior financial year. However, it posted an increased pre-tax loss.

Despite its relatively positive results, the Novonix share price slipped 4% on Thursday before ending Friday in the red.

Novonix in the headlines  

Today's movement from the Novonix share price could have been spurred by some good press the company received yesterday.

Novonix's future plans hit the mainstream media when The Australian published an article stating the Biden administration's push for electric vehicles could boost demand for the company's synthetic graphite-based material.

In the company's full year report, it noted it's recently received US$5.6 million of funding from the US Department of Energy. The funding was to help boost the production of its synthetic graphite material.

Additionally, Phillips 66 (NYSE: PSX) recently strategically invested into Novonix due to its production of the material, while Novonix closed on the purchase of a facility to help it produce an extra 8,000 tonnes of anode material annually.

Material sector gaining

Finally, Novonix's shares might simply be enjoying the material sector's great day.

It's a fabulous Monday to be an ASX-listed materials company, as many commodities, including gold, iron ore, and copper are booming.

Novonix share price snapshot

Even discounting today's impressive gains, the Novonix share price has been performing exceptionally well.

It is currently 298% higher than it was at the start of 2021. It has also gained 208% since this time last year.

Motley Fool contributor Brooke Cooper 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 Resources Shares

Middle age caucasian man smiling confident drinking coffee at home.
Resources Shares

Should you buy Rio Tinto stock or Woodside stock today?

Which of these giants is best? Here's what Goldman thinks.

Read more »

Miner looking at a tablet.
Resources Shares

What does Trump's win mean for iron ore shares like Fortescue?

The controversy on tariffs has already started.

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

Own BHP shares? Directors of the mining giant have been busy with stock transactions

It can be worrying when directors sell.

Read more »

Buy, hold and sell ratings written on signs on a wooden pole.
Resources Shares

Are Lynas shares a buy, sell, or hold for 2025?

Much depends on the outlook for rare earths.

Read more »

a tired and sad looking bulldog sits at an office desk with a pen an paper on it and a cup of coffee with his head resting on the desk as he gives a mournful look to the camera.
Resources Shares

After crashing 50%, could this ASX All Ords stock rebound?

Such low starting valuations could help.

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

Why did the Fortescue share price fall 7% in October?

Let's review what happened with the ASX 200 mining giant in October.

Read more »

a mine worker holds his phone in one hand and a tablet in the other as he stands in front of heavy machinery at a mine site.
Resources Shares

Why did the BHP share price get hammered in October?

ASX 200 investors sent BHP shares sharply lower in October. But why?

Read more »

A man in his 30s holds his laptop and operates it with his other hand as he has a look of pleasant surprise on his face as though he is learning something new or finding hidden value in something on the screen.
Resources Shares

Gina Rinehart's empire raked in another $5.6 billion. Here's how

Resources and mining continue to dominate the Australian market.

Read more »