Novonix Ltd · ASX:NVX
Novonix — Finance News Network Company Overview (June 2018)
37 slides from Novonix's conference presentation, Jun 19, 2018
Slide 1: Company Overview
For personal use only Company Overview FINANCE NEWS NETWORK 19 JUNE 2018 SYDNEY accelerating adoption of battery technologies for a cleaner energy future 19 June 2018 ASX: NVX 1
Slide 2: General Disclaimer
For personal use only GENERAL DISCLAIMER • This document has been prepared by NOVONIX Limited (“the Company” or “NOVONIX”). No representation, expressed or implied, or warranty as to the accuracy or completeness of the information contained herein is made by any party and nothing contained herein sh
Slide 3: Table of Contents
For personal use only TABLE OF CONTENTS • About NOVONIX Limited • Executive Team and Board • Market Background • Our Businesses • NOVONIX Battery Technology Solutions(BTS) • PUREgraphite • Mount Dromedary 19 June 2018 ASX: NVX 3
Slide 4: About Us
For personal use only ABOUT US A Battery Technology Company • We make high performance battery materials and testing equipment • Our customers are leading battery makers, researchers and OEMs • Operations in USA and Canada and sales in fourteen countries Experts Across the Battery Supply Chain • Exp
Slide 5: Business Units
For personal use only BUSINESS UNITS 3 BUSINESS UNITS OWNERSHIP STAKE BUSINESS DESCRIPTION 100% • Develops leading battery testing technologies and sells battery testing equipment and battery testing and consulting services Battery Technology Solutions • Based in Canada with sales in 14 countries •
Slide 6: Board of Directors
BOARD OF DIRECTORS Chairman Managing Director Executive Director For personal use only Tony Bellas Philip St Baker Greg Baynton Non-Executive Director Non-Executive Director Non-Executive Director Admiral Robert J. Natter (effective date 1 July 2018) Robert Cooper Andrew N. Liveris AO 19 June 2018 A
Slide 7: Executive Team
For personal use only EXECUTIVE TEAM Managing Director Executive Director CEO PUREgraphite Joint Venture CEO NOVONIX BTS Philip St Baker Greg Baynton Dr Edward Buiel Dr Chris Burns CTO NOVONIX BTS VP Business Development Mt Dromedary GM CFO NOVONIX Group Dr David Stevens Nick Liveris Steve Hadwen Su
Slide 8: Battery Supply Chain Focus
BATTERY SUPPLY CHAIN FOCUS 2017 2030 2040 For personal use only CATHODE CATHODE CATHODE >260,000 T >2.5 m T >6.25 m T Revenues: 6.8B$ Revenues: 40B$ Revenues: 80B$ CAGR 07/17: +12% CAGR 07/17: +12% CAGR 07/17: +12% ANODE ANODE ANODE 130,000 T 1.3 m T 3.1 m T Revenues: 1.4B$ Revenues: 10B$ Revenues:
Slide 9: EV Penetration to Drive Battery Demand
EV PENETRATION TO DRIVE BATTERY DEMAND Forecast EV Penetration (% of New Car Sales) in 2030 – average forecast is 24% For personal use only Current EV Penetration (% of New Car Sales) in 2017 is ~1.5% 19 June 2018 ASX: NVX 9
Slide 10: It's All About the Batteries
For personal use only IT’S ALL ABOUT THE BATTERIES 19 June 2018 ASX: NVX 10
Slide 11: Batteries and EV - Example
For personal use only BATTERIES AND EV - EXAMPLE The entire battery pack TESLA Model S – 85KWh weighs approximately 500Kg…. (6s74p CONFIGURATION) Note: Indicative and illustrative …including 70kg information of graphite with approximations anodeapplied material and 7kg of lithium in the cathode mate
Slide 12: EV Announcements
EV ANNOUNCEMENTS Major EV announcements from global auto makers For personal use only • 5 June 18 – Fiat Chrysler announces 30 new EV models and US$9b EV investment by 2022 • 18 May 18 – VW announces it will need > 150GWh of battery capacity annually by 2025 • 26 March 18 – Nissan announces a target
Slide 13: Battery Production Growth
BATTERY PRODUCTION GROWTH 6X growth in Lithium-ion megafactories by 2020 – Source: BENCHMARK MINERALS For personal use only 19 June 2018 ASX: NVX 13
Slide 14: NOVONIX BTS – Battery Technology Solutions
For personal use only NOVONIX BTS – BATTERY TECNOLOGY SOLUTIONS 19 June 2018 ASX: NVX 14
Slide 15: About Battery Technology Solutions (BTS)
For personal use only ABOUT BATTERY TECHNOLOGY SOLUTIONS (BTS) • BTS HQ in Canada, spun out of Prof. Dahn’s lab at Dalhousie (DAL) in 2013 • Makes the most accurate battery cell test equipment in the world • Used by leading battery makers, researchers and OEMs • Allows researchers to predict battery
Slide 16: NOVONIX BTS Customers
For personal use only NOVONIX BTS CUSTOMERS For confidentiality reasons there are a number of major global automakers, battery makers, medical device and electronics companies that are customers but cannot be represented. 19 June 2018 ASX: NVX 16
Slide 17: Recent Highlights
For personal use only RECENT HIGHLIGHTS • Strong sales growth this year, expected to be above 30% YOY • Ten “Fortune 500” companies have placed equipment orders in the last year • Battery cell pilot line currently being installed at our facility in Halifax Canada • Our in-house electrolyte developme
Slide 18: NOVONIX Battery Cell Pilot Line
For personal use only NOVONIX BATTERY CELL PILOT LINE Photo: The NOVONIX Canada team busy installing and commissioning our battery cell pilot line 19 June 2018 ASX: NVX 18
Slide 19: PUREgraphite – Anode Material Production
For personal use only PUREgraphite – ANODE MATERIAL PRODUCTION 19 June 2018 ASX: NVX 19
Slide 20: Graphite Is a Key Component of a Lithium Ion Battery
GRAPHITE IS A KEY COMPONENT OF A LITHIUM ION BATTERY For personal use only (Occasionally <3% silicon) Note: Indicative and illustrative information with approximations applied 19 June 2018 ASX: NVX 20
Slide 21: How Much Graphite Anode Material Is Inside?
For personal use only HOW MUCH GRAPHITE ANODE MATERIAL IS INSIDE? CYLINDRICAL ANODE MATERIAL BATTERY CELLS APPLICATIONS ~ 10kg ~ US $100 ~1,000 cells HOME STORAGE (~20% of battery cell weight) (18650 size) 13.5 kWh (Ave home use 20 kWh/day) ~ 70kg ~ US $700 ~7,000 cells ELECTRIC VEHICLE (18650 size)
Slide 22: Graphite Demand to Increase to Over 1Mt 2030
For personal use only GRAPHITE DEMAND TO INCREASE TO OVER 1MT 2030 19 June 2018 ASX: NVX 22
Slide 23: Limited Anode Suppliers – Dominated by China
For personal use only LIMITED ANODE SUPPLIERS – DOMINATED BY CHINA • Asia supplies almost 100% of anode materials for lithium-ion batteries world wide • Most of anode supply is from China • If the anode product is not from China, the graphite feedstock material most likely is • China also dominates
Slide 24: Summary - Battery Anode Market Opportunity
For personal use only SUMMARY - BATTERY ANODE MARKET OPPORTUNITY • Demand for graphite anode material suitable for long life high performance lithium-ion batteries is rapidly growing • The ~USD$1.4B market is set to double in the next three years and growth 15X in the next twenty years • There are v
Slide 25: Building a Competitive U.S. Graphite Anode Producer
BUILDING A COMPETITIVE U.S. GRAPHITE ANODE PRODUCER For personal use only • USA-based 50:50 Joint Venture between NOVONIX and Coulometrics established in 2017 • NVX has an option to increase its interest to 75% of the Joint Venture and 100% of all production above 1,000tpa. • PUREgraphite is focused
Slide 26: Building on Intellectual Property & Trade Secrets
BUILDING ON INTELLECTUAL PROPERTY & TRADE SECRETS For personal use only Intellectual Property • PUREgraphite has acquired and is commercialising intellectual property and trade secrets developed by Coulometrics and its founder Dr Edward Buiel over more than two decades and including the development
Slide 27: The PUREgraphite R&D Advantage
For personal use only THE PUREgraphite R&D ADVANTAGE Material Development Slurry Cell Testing Formulation Electrode Cell Assembly Coating 19 June 2018 ASX: NVX 27
Slide 28: The PUREgraphite Product Advantage
For personal use only THE PUREgraphite PRODUCT ADVANTAGE • Secure supply, made in the USA Proprietary • Better performance and cost over imports blends of artificial & natural • Battery life improvement up to 30% • Based on Integrated processing and • Proprietary blends of artificial and natural gra
Slide 29: The PUREgraphite Product Advantage
For personal use only THE PUREgraphite PRODUCT ADVANTAGE PUREgraphite’s high- PUREgraphite CELLS TESLA CELLS performance anode material: • Consistently demonstrates very high PUREgraphite coulombic efficiency The higher the coulombic efficiency the longer the battery cell life Commercial NG performa
Slide 30: Mount Dromedary
For personal use only MOUNT DROMEDARY 19 June 2018 ASX: NVX 30
Slide 31: Natural Graphite Demand Forecast (kt)
For personal use only NATURAL GRAPHITE DEMAND FORECAST (KT) 19 June 2018 ASX: NVX 31
Slide 32: Natural Graphite Prices USD$
For personal use only NATURAL GRAPHITE PRICES USD$ • Graphite supply starting to tighten again with increased regulatory changes in China and increasing overall demand Source: Benchmark Minerals Intelligence • Graphite pricing is also starting to firm 19 June 2018 ASX: NVX 32
Slide 33: Mount Dromedary Value Proposition
For personal use only MOUNT DROMEDARY VALUE PROPOSITION Unique Large-Scale Access to Market and Concentration and License to Operate Resource Infrastructure Purification Expertise World-class, high-grade Adjacent (<1km) to sealed Extensive metallurgical Well-established mining (18%+) graphite deposi
Slide 34: Scale-Up Opportunity – Mt Dromedary
SCALE-UP OPPORTUNITY – MT DROMEDARY 1 KM For personal use only UNDRILLED • Only 20 – 30% of the known 3KM MAPPED and expected graphite OUTCROP – MOSTLY UNDRILLED mineralization areas have DRILLED - JORC RESOURCE 1.9MT OF CONTAINED been drilled GRAPHITE - SUPPORTS 50ktpa X 20 YEARS • Significant oppo
Slide 35: Mineral Resource Estimate
MINERAL RESOURCE ESTIMATE • Large high grade graphite deposit with 8.5mt at average 18.4% TGC derived from 20-30% of the mapped and For personal use only expected mineralization areas 19 June 2018 ASX: NVX 35 ASX: NVX 35
Slide 36: Summary Investment Highlights
For personal use only SUMMARY INVESTMENT HIGHLIGHTS Established brand in the rechargeable lithium-ion battery industry • NOVONIX is an established brand name known for making the most accurate battery cell test equipment in the world Global footprint of blue-chip customers and sales in 14 countries
Slide 37: NOVONIX Contact Information
For personal use only NOVONIX CONTACT INFORMATION CORPORATE New York City, New York, USA Contact: Nicholas Liveris Email: nick@novonixgroup.com 33 Irving Pl, New York, NY 10003 Telephone: +1 989 859-3213 Brisbane, Queensland, AUSTRALIA BATTERY TECHNOLOGY SOLUTIONS PUREgraphite BATTERY Contact: Greg
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