Slide 1: Investor Presentation: Placements and Entitlement Offer
NOVONIX LIMITED (ACN 157 690 830) INVESTOR PRESENTATION Commercializing PUREgraphite & DPMG Technology Placements and Entitlement Offer 29 MAY 2020 NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES
Slide 2: Important Notice and Disclaimer
Important Notice and Disclaimer Important information This investor presentation (Presentation) has been prepared by NOVONIX Limited ACN 157 690 830 (NOVONIX or Company). This Presentation has been prepared in relation to an equity raising Offer comprising placement of new fully paid ordinary shares
Slide 3: Important Notice and Disclaimer
Important Notice and Disclaimer Forward looking statements This Presentation contains forward looking statements with regard to the financial condition, results of operations and business of NOVONIX and certain plans, strategies and objectives of the management of NOVONIX. Forwards looking statement
Slide 4: Executive Summary
Executive Summary The Problem The Solution: NOVONIX (Right Products, Right Location, Right Time) The Investment • Demand for artificial (synthetic) • We are the only US graphite anode supplier • A$23.5M for capex and working graphite anode material is • Our first commercial production line is now up
Slide 5: Renewables and Green Energy Demand Driving Battery Materials Growth 10x by 2030
Renewables and Green Energy Demand Driving Battery Materials Growth 10x by 2030 More Electric Vehicles More Batteries More Battery Materials EV Sales, Millions Annual Lithium-Ion Battery Demand, GWh Materials Demand, Thousand Metric Tons 100 2,000 8,000 1,800 7,000 80 1,600 1,400 6,000 1,200 5,000 6
Slide 6: Battery Growth is Happening in the US Now
Battery Growth is Happening in the US Now Current US Gigafactory Pipeline Battery Co. Auto Co. Investment Capacity Status State $300M 3 GWh Operating MI • The U.S. expects to have 130 GWh NA 35 GWh Operating NV online by 2023 • Europe expects to Operating $1.7B 9.8 GWh GA have 198 GWh by 2022 2023,
Slide 7: However, All Anode is Coming From Asia, Mostly China
However, All Anode is Coming From Asia, Mostly China Current Synthetic Graphite Anode Market Supply Snapshot Synthetic Anode Market Share by Producer 2018 Synthetic Anode Market Demand (Tons) • Market is currently dominated by China Sinuo 600,000 Shinzoom 20% Others >500,000 • No established manufac
Slide 8: COVID-19 is Forcing Companies to Reconsider their Dependence on China
COVID-19 is Forcing Companies to Reconsider their Dependence on China… “.. companies do see an urgency to diversify and achieve a “China + 1, 2, (or) 3 supply chain strategy” “We are in a completely different new era now and globalization as we’ve known it in the past is over.” ASX: NVX 7 May 2020
Slide 9: Including Companies in the Battery Materials Supply Chain
…Including Companies in the Battery Materials Supply Chain Coronavirus highlights critical need for diversity in the battery metals supply chain Mark Sheridan – February 27, 2020 ASX: NVX 8 May 2020
Slide 10: NOVONIX is the Only US Graphite Anode Supplier
NOVONIX is the Only US Graphite Anode Supplier ASX: NVX 9 May 2020
Slide 11: NOVONIX Has Agreements with the Two Largest Battery Makers
NOVONIX Has Agreements with the Two Largest Battery Makers, These Manufacturers Represent 40% of the Global Li-ion Battery Market in 2018(1) SAMSUNG Supply Agreement and R&D Collaboration SANYO Commercial Collaboration • Initial supply of 500 tons of synthetic graphite • Non-binding MOU to assess an
Slide 12: Why Customers Buy NOVONIX Anode Material (1 of 2)
Why Customers Buy NOVONIX Anode Material (1 of 2) Key Customer Decision Drivers for Synthetic Graphite Anode Material Performance Chinese Japanese We Deliver the Performance Required Measures Why Important NOVONIX Synthetic Synthetic Natural • Improved coulombic efficiency and cycle Capacity Increas
Slide 13: Why Customers Buy NOVONIX Anode Material (2 of 2)
Why Customers Buy NOVONIX Anode Material (2 of 2) Our Synthetic Graphite Anode Material Clearly Beats Competitors in Head-to-Head Testing 1.0000 • NOVONIX offers improved Coulombic Efficiency (CE) 0.9995 NOVONIX compared to industry leading materials (including a Tesla 0.9990 Synthetic Tesla Model S
Slide 14: The Quest for the Million-Mile Battery
The Quest for the Million-Mile Battery Million-Mile Battery requires three critical elements: Requirement NOVONIX • PUREgraphite Anode – developed & scaling Long-life Anodes Long-life • NOVONIX DPMG Cathode – under development Cathodes Long-life • NOVONIX Electrolyte – demonstrated Electrolytes perf
Slide 15: DPMG: New Manufacturing Method for Anode and Cathode
DPMG: New Manufacturing Method for Anode and Cathode NOVONIX Dry Particle Microgranulation • On 15 May 2020, NOVONIX announced a breakthrough low-cost manufacturing Breakthrough method that can be applied to the production of both anode and cathode materials for lithium-ion batteries called dry part
Slide 16: NOVONIX's DPMG Technology Offers Low Cost Cathode Synthesis
NOVONIX’s DPMG Technology Offers Low Cost Cathode Synthesis CSTR Synthesis Process Current Precursor DMG DPMG NOVONIX • Cathode materials waste represent about 30% of agitator waste water metal carbonates the cost of a battery cell RAW MATERIALS RAW MATERIALS CoSO4 CTSR MIXER - 1 • Cathode material
Slide 17: DPMG Performs Head-to-Head with Commercial Leaders
DPMG Performs Head-to-Head with Commercial Leaders DPMG SC NMC622 Commercial SC NMC622 DPMG material shows the same capacity, first cycle efficiency and low polarization of commercial grade material ASX: NVX 16 May 2020
Slide 18: DPMG Commercialisation Plan
DPMG Commercialisation Plan Work Currently Underway Next Steps • Pilot scale demonstration • A$8.5 million of funding for commercialization • Optimizing conditions for different particles: • $3.5 million for integration/deployment of DPMG • High nickel and cobalt free materials, and technology into
Slide 19: Phased Growth Plan For PUREgraphite
Phased Growth Plan For PUREgraphite Phase 3 (Large Scale) Phase 2 (Medium Scale) Phase 1 (Initial Ramp-up) Timeline • 2020 - 2021 • 2022 – 2025 • 2026 - 2030 Capacity • Ramp to 2K tons/yr • Ramp to 25K tons/yr • Ramp to 100K tons/yr • SAMSUNG SDI • SANYO Stepwise Plan Customers(1) • +1 - 2 Internati
Slide 20: PUREgraphite Phase 1 (Anode)
PUREgraphite Phase 1 (Anode) 2020 H1 2020 H2 2021 H1 2021 H2 Capacity Ramp to 125tpa Ramp to 250tpa Ramp to 1,000tpa Ramp to 2,000tpa Production 50t 100t 300t 700t Supply audit Samsung SDI 2021 supply agreement 2022-24 supply agreement Initial 500t agreement SANYO Qualification complete Supply audit
Slide 21: NOVONIX's Funding Plan to Self-Funded Growth
NOVONIX’s Funding Plan to “Self-Funded Growth” Scale to Self-Funded Growth Capacity (AUD$25m) CAPEX Requirements • A$15m CAPEX to scale anode production capacity Electrical and auxiliary infrastructure plant and equipment from 500 to 2,000 tpa over 2020-2021 • Medium and high-power electrical distri
Slide 22: Board of Directors
Board of Directors Tony Bellas Philip St Baker Greg Baynton Chairman Managing Director Executive Director Admiral Robert J. Natter Andrew N. Liveris AO Robert Cooper Non-Executive Director Non-Executive Director Non-Executive Director Leadership Experience ASX: NVX 21 May 2020
Slide 23: Management
Management • 6 full-time staffed PhDs Dr Chris Burns Nick Liveris Dr David Stevens Group Chief Operating Officer Group VP Business Development Group Chief Technical Officer • Exclusive partnership CEO of PUREgraphite/CEO of BTS CFO of PUREgraphite/CFO of BTS General Manager BTS with Professor Mark O
Slide 24: Global Tier 1 Customer Base
Global Tier 1 Customer Base Customer Overview • Customers represented globally across key battery industries, including • Auto OEMs • Battery manufacturers Tier 1 • Consumer electronics Customer • Medical device Base • Battery laboratories • Several major auto OEMs and consumer electronic customers
Slide 25: Placements and Entitlement Offer
Placements and Entitlement Offer
Slide 26: Equity Raising Overview
Equity Raising Overview • Placement to raise approximately $5.6 million through the issue of approximately 19.4 million new shares (“Placement”) and a fully underwritten 1 for 1 accelerated pro-rata non-renounceable entitlement offer to existing shareholders to raise Offer Size and Structure approxi
Slide 27: Equity Raising Timetable
Equity Raising Timetable* Activity Date Announcement of Equity Raising and enter trading halt Tuesday 26 May 2020 Placement and Accelerated Non-Renounceable Entitlement Offer opens Tuesday 26 May 2020 Placement and Accelerated Non-Renounceable Entitlement Offer closes Wednesday 27 May 2020 Announcem
Slide 28: Re-setting of the Capital Structure
Re-setting of the Capital Structure Performance Based Options • Reduced from 36.25 million to 30.75 million Non-Performance Based Options • Reduced from 44.75 million to 9.75 million Convertible Notes • Redeemed Eliminating $18.8 million of Debt • Repayment of Strategic Investor Loan of ~$3.5 millio
Slide 29: Effects of the Equity Raising - Capital Structure
Effects of the Equity Raising - Capital Structure Ordinary Shares Items Minimum subscription under Strategic Maximum subscription under Placement Strategic Placement Number of Shares Percentage Number of Shares Percentage Existing Shares on issue as at 25 May 2020 130,721,435 39.41 130,721,435 37.56
Slide 30: Effects of the Equity Raising - Pro Forma Balance Sheet
Effects of the Equity Raising - Pro Forma Balance Sheet $AUD 1 2 3 4 5 6 31 December 2019 1. Reviewed 31/12/19 balance sheet adjusted for the Placement and (incl. SPP and Option cancellation Note redemption rights issue SBEIF strategic placement Director loans Total Share Purchase Plan and placement
Slide 31: Risk Factors
Risk Factors • Supplier risks associated with materials supply contracts including requirements to meet supply specifications and other customer requirements - On 9 December 2019 the Company announced a supply and R&D collaboration agreement with Samsung SDI, an international manufacturer of lithium
Slide 32: Risk Factors (continued)
Risk Factors (continued) • Typical competition risks associated with the battery materials market - The battery materials market consists of a large number of small suppliers (such as the Company) and a small number of large dominating buyers. The Company faces the risk that one or more of its compe
Slide 33: Foreign Selling Restrictions
Foreign Selling Restrictions This document does not constitute an offer of new ordinary shares New Shares in NOVONIX Limited (Company or NOVONIX) in any jurisdiction in which it would be unlawful. In particular, this document may not be distributed to any person, and the New Shares may not be offere
Slide 34: Appendix 1: Fundraising Background
Appendix 1: Fundraising Background
Slide 35: Historical Strategic Investment
Historical Strategic Investment Three Years of Strategic Investment (AU$40m) - Complete Acquisition and investment in R&D technology and capability (AU$10m) (BTS) • Acquisition of NOVONIX in 2017 & recruitment of Chris Burns (Ph.D.) & David Stevens (Ph.D.) • People and a brand known for designing an
Slide 36: Strategic Investor: St Baker Innovation Fund
Strategic Investor: St Baker Innovation Fund Investing in the electrification of transport Better Better Better EV Batteries EV Chargers EV Charger Networks The St Baker Energy Innovation Fund invested $10 million (in form of convertible notes) in January 2019 to enable NOVONIX to acquire a controll
Slide 37: Appendix 2: Company Background
Appendix 2: Company Background
Slide 38: Company Overview
Company Overview • Founded in 2012 as Graphitecorp and listed on ASX in 2015 • Company founded to develop a graphite mine (project on hold) • Name changed to NOVONIX in 2017 • Founded in 2013 and acquired in 2017 • JV founded in 2017, fully acquired 2019 • Technology accelerates R&D from years to we
Slide 39: NOVONIX Advantage
NOVONIX Advantage How We Broke into the Market We know what customers want and where the market is headed • We perform high precision and specialized cell testing services for tier-1 automakers, consumer electronics OEMs, battery manufacturers and materials companies • We have a long-term battery ma
Slide 40: Group Technology Roadmap – The Million-Mile Battery
Group Technology Roadmap – The Million-Mile Battery 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 HPC tech now sold to tier 1 battery markers and OEMs in 15 countries including PANASONIC, PHASE 1 - HPC R&D Acceleration Technology CATL, SAMSUNG DTA technology now provided to select tier 1 battery
Slide 41: PUREgraphite Facility Photos
PUREgraphite Facility Photos During Construction ASX: NVX 40 May 2020
Slide 42: PUREgraphite Facility Layout
PUREgraphite Facility Layout Current Facility Expansion Area Occupied 40,000 SF Optioned - 80,000 SF Parking area Trucking Area Offices Precursor Product Inventory Inventory Made in Auxlliary Systems Laboratory the USA Particle Particle Coatings Blending, Blending Aerial Photo and and Sizing and Fin
Slide 43: Graphite Anode Material Very Different Graphite Concentrate
Graphite Anode Material Very Different Graphite Concentrate Answer to a Common Question about Our PUREgraphite Business Question: Difference between a natural graphite concentrate and PUREgraphite anode? Answer: PUREgraphite anode is a more refined product than graphite concentrate. • Natural graphi
Slide 44: Self-funding R&D Business
Self-funding R&D Business R&D Technologies and Services Now Funding Our Technology Incubator • Battery R&D services rapidly growing from $200k in FY2019 to >$2m in FY2020 • Sales and services from HPC and DTA testing tech forecast >$2m in FY2020 • Above funds NOVONIX’s battery technology development
Slide 45: Winner of Innovation Award
Winner of Innovation Award 17th Annual Discovery Awards • In November NOVONIX was named the winner of the Award for Innovation at the 17th Annual Discovery Awards in Halifax, Canada • The Discovery Awards is Atlantic Canada’s most prestigious science award • NOVONIX received the Innovation award for
Slide 46: Appendix 3: Market Background
Appendix 3: Market Background
Slide 47: More European Gigafactories Coming
More European Gigafactories Coming More than 400 GWh pa LIB Cell Production Capacity Signaled Salzgitter 2024 Mo I Rana. 2023 16 GWh, later 24 GWh Ramp up to 32 GWh Erfurt 2022 Skelleftea, 2021 14 GWh, later 100 GWh 32 GWh, later 40 GWh Brandenburg, 2021 Sunderland, 2010 Ramp up to 8-12 GWh 2.5 GWh
Slide 48: 2018 Global Li-ion Battery Market
2018 Global Li-ion Battery Market(1) Others Auto 12% 17% 7% 8% NOVONIX has agreements (conditional andMade in non-binding respectively) with the two largest the USA battery makers representing 40% of the global Li-ion battery market 11% 15% in 2018 (1) 2% 7% 14% Source: (1) Avicenne Energy 2019. ASX
Slide 49: USA and Europe Require +160,000 tpa of Synthetic Anode Material by 2023
USA and Europe Require +160,000 tpa of Synthetic Anode Material by 2023 100% Has Come from Asia, Mostly China in the Past Where Will it Come from in the Future? China 82% Supply Chain Risk Sovereign Risk Regional Sourcing Trade Wars Tariffs Customs Transport Made in the USA NOVONIX is the first comp
Slide 50: Contact Information
Contact Information CORPORATE OPERATIONS • Group Managing Director: • CEO - NOVONIX BTS and BTS - Bedford, Nova Scotia, CANADA Philip St Baker PUREgraphite: Dr Chris Burns 177 Bluewater Road, Bedford, NS B4B 1H1, Canada Email: phil@novonixgroup.com Email: chris@novonixgroup.com Telephone: +1 970-376