By M. Marin
Read THE Entire NVNXF Analysis REPORT
Good implications strategic expense
• Significant romantic relationship with big market participant
• Facilitates and aids fund manufacturing expansion
• Facilitates obtain to essential precursor content
• Validates NVX opportunity
Novonix (OTC:NVNXF) is an integrated developer and provider of significant-performance materials, gear and services for the world wide lithium-ion battery marketplace. The company is leveraging its proprietary technological know-how to system and create important resources and engineering for the world wide lithium-ion battery industry, starting with anode supplies. In addition to the Novonix Anode Products device, the business also operates the Novonix Cathode Elements and Novonix Battery Technologies Solutions (BTS) divisions.
Novonix declared before this thirty day period that Phillips 66 intends to acquire a 16% stake in the organization. The strategic romance with Phillips 66 underscores the company’s options in the lithium-ion battery place, in our check out, and is anticipated to offer NVX access to crucial parts it demands to generate superior resources for battery generation.
Growing manufacturing to satisfy rising demand
To reward from the expected expansion in battery demand, Novonix has produced specialised furnace technologies, through a strategic alliance with Harper Global Company, that allows it to generate competitively priced, high-excellent artificial anode content at its Tennessee plant. NVX expects North American need for lithium-ion batteries to carry on to increase and intends to ramp output ability. The around US$150 million expenditure from Phillips 66 will support fund progress initiatives, such as the expansion.
Relationship with main field participant validates NVX opportunity…
We check out the Phillips 66 strategic financial investment, as well as the U.S. DOE grant of a US$5.6 million award to creating the technological innovation, as positive validations of the company’s tactic. We also watch the provide agreements with Samsung SDI and Sanyo (see beneath) as additional validation of the alternatives NVX has if it executes its approach productively to create artificial graphite, a significant component of batteries. Reflecting numerous aggressive pros as opposed to all-natural graphite, artificial graphite is anticipated to overtake purely natural graphite in terms of market place share.
… Even though important battery producers evaluate NVX product
Also, Novonix has formed agreements with Samsung SDI and Sanyo for its materials. NVX will provide Samsung SDI with 500 tons of synthetic graphite anode substance for lithium-ion batteries from its Tennessee plant and expects this agreement most likely will be expanded, following good quality testing of the NVX products. Sanyo also intends to assess generation materials from the Tennessee manufacturing facility.
Likely uplisting an additional positive
With the earlier mentioned-famous expense by a significant participant in the electricity sector and enlargement of its Tennessee facility, the organization options an uplisting of its shares to the Nasdaq. This would enhance consciousness of Novonix inside of the investment group, we believe that, and possible broaden the pool of prospective buyers in the shares.
SUBSCRIBE TO ZACKS Small CAP Investigate to obtain our articles and reviews emailed right to you each individual early morning. Make sure you stop by our internet site for supplemental information and facts on Zacks SCR.
DISCLOSURE: Zacks SCR has acquired payment from the issuer straight, from an financial commitment manager, or from an trader relations consulting firm, engaged by the issuer, for delivering analysis protection for a time period of no significantly less than just one calendar year. Analysis articles or blog posts, as witnessed listed here, are aspect of the provider Zacks supplies and Zacks gets quarterly payments totaling a highest price of $40,000 on a yearly basis for these solutions. Entire Disclaimer Right here.
Benefits Of Choosing Online Home Business Opportunity
Understanding mutual fund fees: types and impacts on investment returns
Small Business Finance – SBIR Grants From the NSF