There is no tangible reason for the jump in share price which yesterday reached a record $10.73, although Novonix shares have benefitted a lot recently from strategic moves.
Earlier this year when it hired Canadian battery guru Jeff Dahm in January, its share price added $100 million in a day. When Phillips66 took a $US150 million stake in the company, its shares surged 16 per cent.
The fact that it posted an $18 million loss for the June 30 year has not troubled investors. Its shares have grown 765 per cent this year and jumped again this morning by another 4 per cent to $11.21.
Yesterday’s dramatic rise in share price can only be attributed to the glowing publicity the company received when it opened its new production plant in Chattanooga, Tennessee, which was attended by US Energy Secretary Jennifer M. Granholm.
The new plant will produce synthetic graphite anode material. Novonix is the only qualified US supplier of the material, which is used in lithium-ion batteries and that is a key issue because there are concerns about China’s dominance of the supply chain.
The Phillips66 stake has grown by $632 million, but its benefit to the company is significant. It is a leading global manufacturer of specialty coke, a key precursor in the production of batteries that power electric vehicles.
It also has market value of $US32 billion and enough firepower to help Novonix to achieve its ambitions.
Novonix is part of the Trevor St Baker family of companies. The St Baker Energy Fund was the biggest shareholder until the Phillips66 move.
The value of St Baker’s stake is now more than $650 million.