Novonix share price slides as material revenue boost remains on the horizon

ASX investors are bidding down the Novonix share price today.

| More on:
A businesswoman exhales a deep sigh after receiving bad news, and gets on with it.

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 sliding today.

Shares in the All Ordinaries Index (ASX: XAO) battery technology company were up 2.1% in early morning trade before reversing course.

At the time of writing, the Novonix share price is down 1.4% at 71 cents. For some context, the All Ordinaries is down 1.1% at this same time.

This follows the release of the company's quarterly update for the three months to 30 September.

Novonix share price wobbles on progress update

The Novonix share price has failed to get a boost after the company reported on progress in its Anode Materials segment. Novonix noted it achieved key milestones, which it said had "established a pathway to profitable anode material production in the United States".

The company is engaged in active negotiations with the US Department of Energy (DOE) on grant and term conditions. And management said it had progressed with its anode customer discussions along with its National Association of Manufacturers (NAM) operational targets.

As for Novonix Battery Technology Solutions, the company said it continued to build a strong pipeline with distributors to support revenue growth for hardware sales.

Highlights included commissioning a cathode pilot line and securing US$2.2 million from the Canadian government for cathode and data product R&D.

The quarter also saw Novonix announce its collaboration with SandboxAQ to develop breakthrough AI solutions for battery technology. The battery tech segment delivered US$1.8 million in revenue over the quarter.

As a beneficiary of the US Bipartisan Infrastructure Law (BIL), Novonix was also selected to receive US$150 million for a greenfield project. That's intended to produce an initial 30,000 tonnes per annum (tpa), with additional installed facilities and infrastructure to support expansion and supply the EV battery supply chain in the United States.

As at 30 September, Novonix had a cash balance of US$87 million.

On the expenditure front, the company invested US$2.9 million on production assets at its Riverside facility in Tennessee. It also spent US$460,000 on its cathode pilot line in Nova Scotia.

What did management say?

Commenting on the results that have yet to lift the Novonix share price, CEO Chris Burns said:

We met the target engineering specification of our Generation 3 furnace technology at mass production scale, a first in the world technology and a breakthrough in the ability to cost-effectively graphitize materials in the most environmentally sustainable way…

We are also very excited about the progress made in commissioning our cathode pilot line and the results from a third-party engineering study on our all-dry, zero waste cathode synthesis process…

Looking ahead, Burns added:

We expect our balance sheet and cash position to support our operating expenses into 2025, at which time we anticipate our revenues to materially increase from our synthetic graphite production.

Novonix share price snapshot

With another day in the red, the Novonix share price is now down 50% in 2023.

Motley Fool contributor Bernd Struben 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 Scott Phillips.

More on Materials Shares

A man checks his phone next to an electric vehicle charging station with his electric vehicle parked in the charging bay.
Materials Shares

Are Pilbara Minerals shares too cheap to ignore?

A leading broker has given its verdict on this beaten down lithium miner.

Read more »

An unhappy man in a suit sits at his desk with his arms crossed staring at his laptop screen as the PointsBet share price falls
Materials Shares

Does Macquarie rate James Hardie shares a buy, hold or sell?

The company is set to report FY25 earnings this week.

Read more »

Man with rocket wings which have flames coming out of them.
Materials Shares

Why is the Core Lithium share price jumping 19% today?

Something is getting investors excited. Let's find out what it is.

Read more »

A woman holds up hands to compare two things with question marks above her hands.
Financial Shares

Which is better value right now, Soul Patts or Brickworks shares?

Let's dive in and see what the experts have to say.

Read more »

A smiling businessman in the city looks at his phone and punches the air in celebration of good news.
Materials Shares

Core Lithium shares charge higher on big news

This lithium miner is starting the week strongly. But why?

Read more »

Lion roaring in the wild, symbolising a rising Liontown share price.
Materials Shares

Why did the Liontown share price rip 19% higher today?

This ASX lithium share was the fastest riser of the ASX 200 today.

Read more »

A female miner wearing a high vis vest and hard hard smiles and holds a clipboard while inspecting a mine site with a colleague.
Materials Shares

Why are Fortescue shares charging higher today?

What is getting investors excited today? Let's find out.

Read more »

Business people discussing project on digital tablet.
Materials Shares

What does Macquarie think Liontown Resources shares are worth?

Let's see if analysts think that this lithium miner is in the buy zone or best avoided.

Read more »