Why the Novonix (ASX:NVX) share price rocketed 16% today

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.

The post Why the Novonix (ASX:NVX) share price rocketed 16% today appeared first on The Motley Fool Australia.

Should you invest $1,000 in Novonix right now?

Before you consider Novonix, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Novonix wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of May 24th 2021

More reading

It’s been a massive year for the Pilbara Minerals (ASX:PLS) share price
ASX lithium shares are surging on Tuesday. Here’s why

These 3 ASX 200 shares were big movers this Monday

Why is the Mineral Resources (ASX:MIN) share price up 4% today?
Leading brokers name 3 ASX shares to buy today

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.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!