Biden hands $240m funding boost to Brisbane’s ‘market darling’ Novonix
Brisbane-based battery maker Novonix would receive $US150 million ($240 million) from the US Government to expand its production of electric vehicle battery materials.
Novonix chief execeutive Chris Burns as the company rang the bell on the Nasdaq. (Image supplied)
The company, which is essentially a north American-based operation, but listed on the ASX with Australian backers, said the funding was part of the Biden Administration’s $US7 billion in funding for the battery supply chain.
The announcement sent Novonix shares up 20 per cent this morning and that followed a 20 per cent hike in the Novonix share price earlier this week before the announcement was made. One of the company’s biggest shareholders is Trevor St Baker.
Novonix shares have suffered since the global economy started faltering. It reached a year high of $11.95 in December and was at $2.13 before the market opened this morning.
The strategy by the US Government has also helped the Brisbane-based Tritium and its EV battery fast charging technology. Tritium has also set up manufacturing in the US.
Novonix said the money would support its growth plans for its synthetic graphite anode materials.
“Specifically, the grant funds will be dedicated to the construction of a 30,000 tonnes per annum US manufacturing facility, including site selection, plant layout and engineering design with capability for additional expansion,” Novonix said.
The grant is still subject to negotiations over milestones, timing and scheduling, but Novonix co-founder and chief executive Chris Burns said it was recognition of the company’s ability to accelerate the domestic battery supply chain and meet global demand.
He said the funding would help the US reduce its reliance on imported graphite. China currently dominates the market in synthetic and natural graphite and a small amount comes from Japan and Korea.
Novonix already has a production facility in the US and was on track to produce 10,000 tonnes a year at a facility in Tennessee.
“Since our inception our mission has been to enhance batteries through innovation and pave the way for a clean energy transformation. We are excited to partner with the Department of Energy to further our mission of establishing a domestic supply chain for synthetic graphite used in lithium-based batteries and creating long-term sustainable value for our stakeholders,” Burns said.
