The Novonix Ltd (ASX: NVX) share price is in the red on Wednesday after the company posted its third-quarter cash flow report.
At the time of writing, shares in the battery technology company are trading at 76.5 cents apiece, down more than 2.5% as investors react to the company's numbers.
Here's what the company posted.
Novonix share price slides on Q3 update
Key takeouts from Novonix's Q3 2024 report include the following:
- Continued equipment installation at Riverside facility to reach 3,000 tpa capacity by H1 2025. This is aimed at meeting Panasonic Energy and KORE Power supply agreements
- Total of US$9 million in US Department of Energy (DOE) grants received in the past nine months to support manufacturing projects
- Total of $2.5 million in cash receipts from customers during the quarter
- Appointment of Robert Long as CFO, bringing over 25 years of finance leadership experience
- Ended Q3 with a cash reserve of US$37.4 million
What else happened in Q3?
The Novonix share price had an interesting quarter, backed by several company-specific catalysts during the period.
It entered into a collaboration to test and synthesise battery materials with CBMM, a company that specialises in niobium. The pair will test and aim to develop cathode material that is more efficient and cheaper.
In addition to partnerships, the company received reimbursements from the DOE, bringing the total funds received to US$9 million this year.
Whereas on the data front, it published a white paper illustrating its cathode technology. The paper is said to show how Novonix's technology produces "potentially significant cost savings and waste reduction of this proprietary process compared to the conventional wet process".
Aside from that, it appointed a new CFO. Robert Long reportedly brings a quarter of a century of experience in such roles.
Time will tell if Long's appointment impacts the Novonix share price.
What did management say?
Novonix's CEO, Chris Burns, expressed optimism about the quarter:
This quarter, the Company progressed commercial discussions and qualification programs with potential customers for our high-performance, synthetic graphite products and continues to see strong demand for locally produced battery materials.
NOVONIX continued to receive, install, and commission equipment at our Riverside facility towards our initial 3K tpa of production capacity which will start-up in the first half of 2025 to support our planned start of production for Panasonic Energy in late 2025.
What's next?
Novonix plans to continue expanding its production capacity to meet the growing demand for battery materials. The company is also working on a larger production site in the southeastern United States, with an initial 30,000 tpa capacity that could scale to 75,000 tpa.
Management says that the fourth quarter of 2024 should also see a focus on growth:
Looking ahead to our fourth quarter, we remain focused on sustaining our growth trajectory and
positioning the Company for continued success and the start of commercial scale production at Riverside in 2025.We are in ongoing discussions with potential customers to secure additional supply commitments for our anode facilities and continue to make our contribution to strengthen the local battery supply chain in North America.
Novonix share price snapshot
The Novonix share price is up more than 14% in the last year after an 8% jump in the past month.
Despite this, it has lagged the technology sector by nearly 50% in the last year.
