By M. Marin
READ THE FULL NVX RESEARCH REPORT
Novonix (NASDAQ:NVX) is an integrated developer and supplier of high-performance materials, equipment and services for the global lithium-ion battery industry. The company is leveraging its proprietary technology to process and develop critical materials and technology for the global lithium-ion battery industry, beginning with anode materials.
EXPANSION PLANS: RAMP & SCALE PRODUCTION CAPACITY
Kore Power - Significant volume sales already secured
Novonix and Kore Power have signed investment and supply agreements for NVX to be the exclusive supplier of graphite anode materials to Kore Power's U.S. operations. In July 2021, Kore unveiled plans to construct Koreplex, a manufacturing facility intended to support up to 12 gigawatt hours (GWh) of battery cell production. NVX is also acquiring a 5% stake in Kore. Headquartered in Idaho, with offices in Europe, Canada and India, Kore is a leading U.S.-based developer of battery cell technology for the clean energy industries.
Kore is the latest of several strategic relationships NVX has formed. For instance, Phillips 66 acquired a 16% stake in Novonix and recently signed a technology development agreement to collaborate to accelerate development of next-gen materials for the U.S. battery supply chain and advance the production and commercialization of anode materials for lithium-ion batteries.
We also believe interest from Sanyo and Samsung SDI, as well as the above-noted relationships with Phillips 66 and Kore Power underscores the company's broad range of opportunities. It is relatively early in this emerging space, in our view, and Novonix is positioning itself to be a strong beneficiary as the sector develops, offering a range of solutions for the lithium-ion space.
Novonix's two initial target niches within the battery space are the electric vehicle (EV) and ESS verticals. Optimism about the EV space is leading to development of infrastructure to support EVs, which we view as a positive. For instance, according to the DOE, "EV charging continues to experience rapidly changing technology and growing infrastructure." The Biden administration has a stated target of constructing a national public charging network of 500,000 ports by 2030.
Uplisting expected to boost awareness
Novonix shares uplisted to the Nasdaq earlier this month. We believe this boosts awareness of Novonix within the investment community and likely expand the pool of potential investors in the shares. The shares were also recently added to the S&P/ASX 300 index, which is intended to provide investment access to the Australian equity market.
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