The Novonix share price is jumping today, with the lithium producer rebounding after falling for the past two days.
The post What’s happening with the Novonix (ASX:NVX) share price today? appeared first on The Motley Fool Australia. –
The Novonix Ltd (ASX: NVX) share price is jumping today. This comes as the lithium battery producer rebounds after falling for the past two days.
The Novonix share price is up 3.14% to $2.30 at the time of writing. However, it has lost value this week and the past month.
Novonix’s principal activity includes the development and implementation of a downstream integration strategy. This strategy transformed the business into a supplier of advanced battery materials, equipment, and services to the global Lithium-ion Battery (LIB) market.
To the layman, it’s a lithium battery producer that also specialises in a range of materials and technology for building batteries.
Formerly known as Graphitecorp Limited, Novonix is an integrated developer and supplier of materials, equipment, and services for the global lithium battery industry. The brunt of its operations occurs in the USA and Canada. Novonix also owns a natural graphite deposit in Queensland.
Novonix share price ups and downs
The Novonix share price fell for the past two days. Overall, it has lost ground this week and month. This can generally be seen as a rarity for the surging battery company. Despite this recent slip, Novonix has otherwise enjoyed a year return of 1,087%.
Currently, the share price is down 0.8% this week and 17% this past month. The Novonix share price lost ground in February due to a $115 million placement. Consequently, the equity raising led to an 18% decline in the Novonix share price in the first week of March, which it still hasn’t recovered from.
The company was clearly unprepared for the slow extent of its share price recovery over recent weeks. On 4 March 2021, Novonix announced the deferral of its Share Purchase Plan. This was planned as a capital raising initiative.
On 7 April, it announced it was cancelling the planned placement altogether.
This decision was made following the share price trading below the Share Purchase Plan offer price of A$2.90. It’s still well below that point at the current time. Additionally, Novonix said it has no intention to re-issue the Share Purchase Plan at a lower price.
Novonix and Sayona for the future
Sayona plans to conduct product trials with Novonix. These trials will be focused on delivering a clean and green 99.97% lithium hydroxide battery. Furthermore, the produced batteries will be suitable for North American electric vehicle makers.
That research is set to commence in May.
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Motley Fool contributor Lucas Radbourne-Pugh 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 Bruce Jackson.