The Novonix Ltd (ASX: NVX) share price is having a strong finish to the week.
In morning trade, the battery materials company's shares are up 14% to $1.33.
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Why is the Novonix share price shooting higher?
The catalyst for the rise in the Novonix share price this morning has been the release of a promising announcement.
According to the release, the company has signed an agreement to establish an incorporated joint venture with TAQAT to develop and produce anode materials for electric vehicle and energy storage system batteries in the Middle East and North Africa (MENA) region.
TAQAT is a leading Saudi Arabian energy company. Novonix notes that it is a leader and innovator in the global energy market, and a key contributor to the economic growth and development of the MENA region.
The 40:60 joint venture is intended to utilise Novonix's leading battery technology and capability to develop a graphite anode materials facility with capacity of 30,000 tonnes per annum. The project will be located in Saudi Arabia.
The company highlights that Saudi Arabia plans to electrify 30% of vehicles on its roads by 2030 and has launched its own electric vehicle brand, Ceer, to support this endeavour. Management believes its anode materials facility will help support a localised supply chain for the sector.
'Very excited'
Novonix CEO, Chris Burns, commented:
I am very excited as to the possibilities that the joint venture presents to both of our companies. The joint venture will leverage NOVONIX's existing work in North America and will allow us to more quickly scale our operations to extend our geographical reach to the global market.
We believe the joint venture will enhance our financial strength and profitability by both driving revenues and accessing cost competitive, quality feedstock for projects outside of North America. NOVONIX's battery anode manufacturing expertise coupled with TAQAT's anticipated strong financial support will help bring the first anode materials facility to Saudi Arabia.
