Battery-related shares are taking off on Tuesday.
The post Why the Novonix (ASX:NVX) share price rocketed 16% today appeared first on The Motley Fool Australia. –
The Novonix Ltd (ASX: NVX) share price has been going gangbusters today, surging to a mid-afternoon intraday high of $2.69, up 16.5%.
The Novonix share price has since retreated to trade at $2.60 at the market close, up 14.5%
The integrated battery materials developer and supplier has not announced any price-sensitive news since 23 June, where it purchased a second facility to produce anode materials.
But investors have been bidding up the Novonix share price with approximately 9.05 million shares changing hands on Tuesday. This compares to its 10-day average of approximately 1.96 million.
Let’s take a look at what else might be driving a sharp re-rating in Novonix shares.
Battery-related shares are running hot
The Novonix share price isn’t alone in today’s rally. The company supports the global deployment of lithium-ion batteries, and its peers — including battery developers, lithium miners and electric vehicle manufacturers — were also pushing higher.
Talga Group Ltd (ASX: TLG) develops a similar integrated battery anode plant in Sweden to produce anode products and lithium-ion batteries. The Talga share price pushed higher today, up 3.15% to close at $1.31.
Similarly, shares in Ecograf Ltd (AX: EGR) climbed today, closing up 4.17% at 62.5 cents apiece.
Ecograf is also positioned to support the global battery market, with operations in battery anode production and battery recycling.
Elsewhere, ASX lithium shares were surging on Tuesday, with heavyweight miners Galaxy Resources Limited (ASX: GXY), Pilbara Minerals Ltd (ASX: PLS) and Orocobre Limited (ASX: ORE) rallying between 1.63% and 4.88%.
Today’s rally also appears to be supported by gains from Wall Street peers overnight, including top lithium producer Albemarle Corporation and electric car manufacturer Tesla Inc.
About the Novonix share price
The Novonix share price has rallied 111.3% year-to-date, with most of its gains occurring between January and February.
From March onwards, its shares have stalled around the $2.30 level.
With today’s renewed buying interest, the Novonix share price has propped back up to a 5-month high.
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Motley Fool contributor Kerry Sun has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Tesla. 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.