Novonix Ltd · ASX:NVX
Novonix — Australian Microcaps Conference 2018
49 slides from Novonix's conference presentation, Oct 18, 2018
Slide 1: Australian Microcaps Conference 2018
For personal use only Australian Microcaps Conference - 2018 Accelerating adoption of battery technologies for a cleaner energy future 18 October 2018 ASX: NVX 1
Slide 2: General disclaimer
General disclaimer For personal use only • 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: Contents
Contents • Company overview CORPORATE INFORMATION For personal use only • EV, battery, materials markets STOCK INFORMATION ASX Code NVX • NVX assets and markets ASX Share Price @17 October 2018 A$0.54 52 Week Low - High A$0.45 – A$1.91 • Customer relationships Shares on issue 123m • Battery anode ma
Slide 4: Company overview
Company overview For personal use only • Battery technology company • Makes battery anode material that extends battery life >30% • Makes battery tech that cuts R&D time to weeks from years • Owner of a World-Class Natural Graphite Deposit (18%TGC) • Leading brand used by battery & OEM multinational
Slide 5: EV penetration to drive battery demand
EV penetration to drive battery demand 1.5% to 24% EV penetration forecasts For personal use only • 2017 EV Penetration (% of New Car Sales) – ~1.5% • Average 2030 EV Penetration Forecast in 2030 – 24% 18 October 2018 ASX: NVX 5
Slide 6: EV demand to drive battery materials demand
EV demand to drive battery materials demand For personal use only Source: EV Outlook 2018, Bloomberg New Energy Finance Note: Copper includes copper current collectors and pack wiring. Aluminium includes aluminium current collectors, cell and pack materials and aluminium in cathode active materials
Slide 7: Developing innovative products in growing battery market
Developing innovative products in growing battery market NOVONIX business LIB segment Market size 2017 2030 2040 For personal use only Anode Revenue: $1.4b $10b $20b Materials Tons: 130kt 1.3mt 3.1mt Electrolyte Revenue: $1.8b $10b $20b Materials Tons: 140kt 1.4mt 3.4mt Other Revenue: $8.7b $50b $10
Slide 8: Strategic business units/assets
3 Strategic business units/assets Business / asset Ownership stake Business description For personal use only • Makes battery anode material that extends battery life >30% 50% • 50/50 joint venture with Coulometrics (with right to increase to 75% of first 1,000TPA and • Currently building Phase 1 pr
Slide 9: Customer relationships
Customer relationships For personal use only Multiple global consumer electronics Multiple global auto makers - confidential companies - confidential For confidentiality reasons there are a number of major global automakers, battery makers, medical device and electronics companies that are customers
Slide 10: Battery anode materials
Battery anode materials Artificial graphite Natural graphite Graphite w/silicon additive 100% Silicon alloy For personal use only • Best for long life • Best for low cost • Commercial • Unproven Application applications applications application limited • Very limited • xEV and Grid • Portable electr
Slide 11: Next generation battery materials
Next generation battery materials Partnership Dalhousie Focus For personal use only • NOVONIX has first rights to IP • Dalhousie University is a world • The research is focused on developed from the research leader in battery innovation developing advanced Li-ion • The aim is to facilitate and has r
Slide 12: Battery cell pilot line
Battery cell pilot line For personal use only Photo: Professor Jeff Dahn of Dalhousie University with Dr Chris Burns NOVONIX COO inspecting the electrode slitting operation at the NOVONIX battery cell manufacturing facility • 100% NOVONIX-owned battery cell pilot line now operational in our Halifax
Slide 13: Highly experienced Board of Directors
Highly experienced Board of Directors For personal use only Chairman Managing Director Executive Director Tony Bellas Philip St Baker Greg Baynton Non-Executive Director Non-Executive Director Non-Executive Director Admiral Robert J. Natter Andrew N. Liveris AO Robert Cooper 18 October 2018 ASX: NVX
Slide 14: Highly experienced Executive Team
Highly experienced Executive Team For personal use only 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 Live
Slide 15: FY2018 Highlights
FY2018 Highlights PUREgraphite For personal use only • Built pilot plant for manufacture of high performance battery anode materials • Commenced product trials with multiple prospective customers • Completed process design and equipment selection for commercial production plant Battery Technology So
Slide 16: Outlook FY2019
Outlook FY2019 • Well positioned to participate in the rapidly growing battery, EV & ESS markets For personal use only • On track to achieve another 30%+ growth in battery test equipment sales • On track to build of our first commercial battery anode production plant • On track to commence commercia
Slide 17: Investment highlights
Investment highlights Opportunity to position at an early stage in a global market with exponential growth For personal use only • Exponential demand for rechargeable lithium-ion batteries being driven by EV and energy storage demand growth Established brand in the rechargeable lithium-ion battery i
Slide 18: Contact information
Contact information For personal use only Corporate contact Battery Technology Solutions PUREgraphite battery materials information (BTS) facility development facility USA & AUSTRALIA Contact: Philip St Baker Email: phil@novonixgroup.com Telephone: +1 970-376-4918 Telephone: +61 4-3817-3330 New York
Slide 19: Appendix
For personal use only Appendix 18 October 2018 ASX: NVX 19
Slide 20: For personal use only
For personal use only 18 October 2018 ASX: NVX 20
Slide 21: Summary – battery anode market opportunity
Summary – battery anode market opportunity For personal use only • PUREgraphite has developed materials that compete on performance and cost against best-in- class materials • Beachhead customers in place, building commercial production plant, sales f/cast to commence H1CY19 • ~USD$1.4B market f/cas
Slide 22: Customers, Production, Revenue Potential
Customers, Production, Revenue Potential Customers Ramp up plan For personal use only • Currently we are 2017 2019/20 2023 2030 working with US based beachhead customers to 75-100 Production plan 1ktpa 25ktpa+ optimize design ktpa • NDA’s in place with several interested large global battery Revenue
Slide 23: The PUREgraphite strategic advantage
The PUREgraphite strategic advantage For personal use only • Secure supply, made in the USA Proprietary blends of artificial & • Better performance and cost over imports natural ⁻ Battery life improvement over 30% Integrated processing and • Based on purification technologies ⁻ Proprietary blends of
Slide 24: The PUREgraphite product advantage
The PUREgraphite product advantage For personal use only • PUREgraphite’s high- performance anode material: ⁻ Estimated to deliver 30%+ longer life than the best-in-class commercial EV cells ⁻ Consistently demonstrates very high coulombic efficiency performance against industry benchmarks The higher
Slide 25: PUREgraphite anode material: timeline – milestones achieved
PUREgraphite anode material: timeline – milestones achieved H2 2017 CY – Product development, H1 2018 CY – Equipment trials and For personal use only H1 2017 CY – JV formation process development, pilot plant selection, plant engineering engineering, and pilot plant delivery • NVX forms 50:50 PUREgr
Slide 26: PUREgraphite timeline – transition to commercial production
PUREgraphite timeline – transition to commercial production For personal use only H2 2018 CY H1 2019 CY H2 2019 CY 2020-2022 CY’s • Initial production of graphite for LIBs • First sales to beachhead • Internal production, • Continued ramp of for beachhead customers already customers plant procuremen
Slide 27: For personal use only
For personal use only 18 October 2018 ASX: NVX 27
Slide 28: NOVONIX – Battery value chain opportunity
NOVONIX – Battery value chain opportunity • NOVONIX Battery Material Cell Module/Pack For personal use only Technology Services is Anode Cathode Separator Electrolyte strategically aligned with and supports the entire battery value chain Major • Growing this business players L&F allows us to ⁻ Pin o
Slide 29: Products, Customers, Sales
Products, Customers, Sales Products Customers Sales history and aspirations (FY) For personal use only • Equipment • Sales in 14 countries 2015 2016 2017 2018 ⁻ 2A HPC Chargers • Battery makers ⁻ 20A HPC Chargers (most) Sales ⁻ Panasonic, CATL, $0.35m $1.40m $1.55m $2.15m ⁻ Thermal Chambers history
Slide 30: BTS opportunity to expand into new products and markets
BTS opportunity to expand into new products and markets NOVONIX market Testing equipment and Size Lab and R&D cyclers – competitor and product landscape positioning overview services markets ($M) For personal use only • NOVONIX BTS • Lab and R&D cyclers 250 Company <5A 20A 50A 200A >1000A currently
Slide 31: The BTS competitive advantage
The BTS competitive advantage For personal use only • Manufacturer of the most accurate battery cell test equipment in the world Accelerated R&D cycle • Allows researchers to predict battery life in weeks rather than years Breadth of R&D • Expertise from battery chemistry to battery cell mass produc
Slide 32: Measuring battery performance with high precision coulometry (HPC)
Measuring battery performance with high precision coulometry (HPC) For personal use only NOVONIX has developed industry leading high precision Coulombic Efficiency is the fastest and most reliable read cyclers measuring LIB coulombic efficiency on battery life HPC Cycles •2400 High Precision 8Coulom
Slide 33: BTS - accomplishments since acquisition in June 2017
BTS - accomplishments since acquisition in June 2017 • 35% YOY growth in sales including ten “Fortune 500” companies placing orders For personal use only Strong growth • Launched our second larger HPC product (20A) with strong early sales • Moved to a facility 5X larger and expanded the team 3X to s
Slide 34: BTS looking forward – expanding sales, service and R&D
BTS looking forward – expanding sales, service and R&D For personal use only H2 2018 CY 2019-2022 CY’s • Continue 30%+ YOY organic growth of equipment sales • Organically grow equipment sales and grow • Ramp up sales of newly introduced product – 20A HPC services in North America with strategic part
Slide 35: For personal use only
For personal use only 18 October 2018 ASX: NVX 35
Slide 36: Project Update - Key Highlights
Project Update - Key Highlights Background: Existing world-class, extensive, high-grade (18%+) graphite deposit in an For personal use only established mining province near Cloncurry in North West Queensland - Mining Lease Application underway Latest results: New copper assay results received today
Slide 37: Mount Dromedary Battery Materials Project
Mount Dromedary Battery Materials Project Unique large scale Access to market and Concentration and For personal use only License to operate resource infrastructure purification expertise • World-class, high-grade • Adjacent (<1km) to • Extensive metallurgical • Well-established mining (18%+) graphi
Slide 38: Mount Dromedary Battery Materials Project Opportunity
Mount Dromedary Battery Materials Project Opportunity • One of the highest grade flake graphite deposits in the world 1 KM For personal use only • Only 20 – 30% of the known/expected graphite mineralization drilled UNDRILLED • Indicates resource potential of >4.0 Mt of total contained graphite • Hig
Slide 39: Appendix: Market background
For personal use only Appendix: Market background 18 October 2018 ASX: NVX 39
Slide 40: Bloomberg forecast to 2040
Bloomberg forecast to 2040 For personal use only 18 October 2018 ASX: NVX 40
Slide 41: Why? - It's all about the batteries – 80% price drop in years
Why? - It’s all about the batteries – 80% price drop in 7 years For personal use only 18 October 2018 ASX: NVX 41
Slide 42: Batteries and EV - example
Batteries and EV - example TESLA Model S – 85KWh The entire battery pack weighs For personal use only approximately 500Kg…. (6s74p CONFIGURATION) …including 70kgandofillustrative Note: Indicative graphite anodeinformation material applied and 7kg of with approximations lithium in the cathode materia
Slide 43: EV announcements
EV announcements In January 2018 Reuters reported global automakers to invest US$90b in batteries & electric For personal use only cars in the coming years - US$9b in the United States, US$21b in China and US$52b in Germany Major EV announcements from global auto makers • 15 October 18 - Daimler bre
Slide 44: Ambitious EV targets by governments and auto-makers
Ambitious EV targets by governments and auto-makers Government targets Automaker targets For personal use only 18 October 2018 ASX: NVX 44
Slide 45: Major auto makers bringing new models to market
Major auto makers bringing new models to market For personal use only Source: Bloomberg New Energy Finance 18 October 2018 ASX: NVX 45
Slide 46: 6X Growth in lithium ion battery mega-factories by 2020
6X Growth in lithium ion battery mega-factories by 2020 For personal use only Source: Benchmark Minerals 18 October 2018 ASX: NVX 46
Slide 47: 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 small% silicon) Note: Indicative and illustrative information with approximations applied 18 October 2018 ASX: NVX 47
Slide 48: Regardless of LIB type, graphite anode is the most prevalent
Regardless of LIB type, graphite anode is the most prevalent Lithium-ion battery resource composition by cathode chemistry For personal use only Kg / kWh 2.50 Phosphorous Iron 0.15 Manganese 2.00 0.02 Aluminum 0.12 0.15 0.35 0.12 0.10 Lithium 1.50 0.25 1.10 Cobalt 0.70 0.65 Nickel 0.45 Graphite Anod
Slide 49: How much graphite anode material is inside?
How much graphite anode material is inside? For personal use only Applications Cylindrical battery cells Anode material Home storage ~1,000 cells ~ 10kg ~ US $100 13.5 kWh (18650 size) (~20% of battery cell weight) (Av. home use 20 kWh/day) Electric vehicle ~7,000 cells ~ 70kg ~ US $700 80 kWh (1865