Novonix Ltd · ASX:NVX
Novonix — Investor Presentation (June 2021)
51 slides from Novonix's investor presentation, Jun 2, 2021
Slide 1: Company Presentation June 2021
For personal use only NOVONIX LIMITED 10 µm Graphite SC-622 Graphite SC-622 Company Presentation June 2021
Slide 2: Important Notice and Disclaimers
Important Notice and Disclaimers NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES The information contained in this presentation (the “Presentation”) has been prepared by NOVONIX Limited (ACN 157 690 830) (“the Company” or “NOVONIX”) solely for information purposes. It is intended to be a For pe
Slide 3: Today's Presenters
Today’s Presenters For personal use only Dr. Chris Burns Nick Liveris CEO CFO • Group CEO of NOVONIX after formerly serving as COO of NOVONIX Ltd, • Previously served as operational CFO for NOVONIX Anode Materials and CEO of BTS and CEO of NOVONIX Anode Materials NOVONIX BTS and VP Business Developm
Slide 4: NOVONIX Overview
For personal use only 10 µm Graphite SC-622 Graphite SC-622 NOVONIX Overview
Slide 5: Who We Are
Who We Are NOVONIX is a leader in battery development and material technology. We develop and supply what we believe to be the most accurate For personal use only battery testing technology in the world. We are the only qualified US-based supplier of battery-grade synthetic graphite anode material.
Slide 6: Recent NOVONIX Events
Recent NOVONIX Events For personal use only 22 Dec 2020: Expanded collaboration with Samsung to 26 Feb 2021: Completion of utilize the next generation 19 Jan 2021: Leading 12 Feb 2021: NOVONIX entered ASX equity raise of A$115m to technology being developed researcher, Dr. Jeff Dahn into a new five
Slide 7: Our Leadership and Board of Directors
Our Leadership and Board of Directors Leadership Team Technical Advisors For personal use only Dr Chris Burns Nick Liveris Rashda Buttar Suzanne Yeates Dr. Jeff Dahn Dr. Mark Obrovac Group CEO Group CFO SVP & General Counsel Financial Controller & Co Secretary Chief Scientific Advisor(1) Sponsored R
Slide 8: We Play a Critical Role in the Lithium Ion Battery Value Chain
We Play a Critical Role in the Lithium Ion Battery Value Chain For personal use only Battery Technology Solutions Primary Focus Specialty Battery Battery Cell and Pack Battery Raw Battery Material Materials Production EV & ESS OEMs Materials Refining Anode Materials Energy Storage Partnership Cathod
Slide 9: Our Technology is Utilized by a Global Tier Customer Base
Our Technology is Utilized by a Global Tier 1 Customer Base Customers Represented Globally Across Key End-markets For personal use only End Market Key Customers(1) Auto and ESS OEMs EV Battery manufacturers Consumer Electronics & Medical Devices Research institutions 1. Several major auto OEMs, mate
Slide 10: NOVONIX Investment Highlights
NOVONIX Investment Highlights Better Performance, Longer Life, Lower Cost For personal use only We develop and supply what we believe is the most accurate battery testing technology in the world Our proprietary process technology and capabilities across the value chain drive innovation and commercia
Slide 11: Industry Overview and Electrification Trends
For personal use only 10 µm Graphite SC-622 Graphite SC-622 Industry Overview and Electrification Trends
Slide 12: Overall Battery Cell Demand is Poised for Strong Growth
Overall Battery Cell Demand is Poised for Strong Growth Estimated Battery Cell Demand by End Market • Efforts to decarbonize the global For personal use only economy have accelerated in recent 2,500 2,430 years, supported by government regulations, technological innovation, 2,087 corporate actions a
Slide 13: The Global Transition to EVs is Well Underway
The Global Transition to EVs is Well Underway… Estimated Global Vehicle Sales (in millions) For personal use only 120 110 112 107 109 104 105 102 100 96 96 97 94 93 92 90 86 81 80 60 40 28% 20 11% 4% 0 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 EV Sold Non-EV Sol
Slide 14: Passenger BEVs Being the Most Significant Driver of EV Demand
…With Passenger BEVs Being the Most Significant Driver of EV Demand EV Estimated Demand by Sub Segment For personal use only 2,000 1,928 1,800 1,631 1,600 1,400 1,362 1,200 1,135 1,000 902 GWh 800 751 600 563 443 400 312 223 200 149 0 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Passenger
Slide 15: Several Factors are Driving EV Growth and Adoption
Several Factors are Driving EV Growth and Adoption For personal use only Government Improved Range Reduction Range of Regulation And Infrastructure In Costs Offerings Battery technology continues An increasing number of to improve the range of EVs, national and local governments Technological advanc
Slide 16: Select National and Local Government EV and Emissions Targets
Select National and Local Government EV and Emissions Targets • Targeting ending ICE sales in 2030 and double EV subsidies in use only • Target 20% penetration of EV sales by 2025 post-COVID stimulus efforts • Asia Proposal to end ICE by 2040, launch €8bn auto stimulus package, • Target 30% penetrat
Slide 17: US Regulatory Tailwinds
US Regulatory Tailwinds For personal use only In May 2019, the US announced an increase on Chinese graphite Tariffs on Synthetic Graphite import tariffs as well as other materials from 10% to 25%. China responded by introducing 10% import tariff on flake graphite and synthetic graphite. Congress pro
Slide 18: Battery Costs Make Up a Significant Portion of EV Production Costs
Battery Costs Make Up a Significant Portion of EV Production Costs Lithium-ion Battery Cell Price Forecast ($ / kWh) 1 Battery Cost Comparison ($/ kWh) For personal use only $300 $290 Illustrative Materials Costs Split Nickel 26% 250 Other $230 Lithium 42% 13% 200 Graphite $120 Manganese Cobalt $180
Slide 19: The Growing EV Market will be Supported by Incumbent OEMs and New Players
The Growing EV Market will be Supported by Both Incumbent OEMs and New Players • 50% of global sales to be passenger EV by 2030 • Expected start of production in Q2 2022, 150k vehicles by 2026 • use only 33% of portfolio to be passenger EV by 2025 • 25 New Energy Vehicles (NEV) by 2025, including BE
Slide 20: V2G Expected to Drive Demand for High Battery Cycle Life
V2G Expected to Drive Demand for High Battery Cycle Life Vehicle to Grid Provides Two Key Advantages Several Key EV OEMS Have Announced V2G Plans For personal use only Enables fleets and individuals to reduce cost of ownership by • All VW MEB-based electric cars will be V2G charging at non-peak time
Slide 21: NCM Expected to be Leading Cathode Chemistry, Graphite Dominant Anode
NCM is Expected to be the Leading Cathode Chemistry with Graphite Remaining the Dominate Anode Technology Cathode Market Share by Chemistry For personal use only 2020 2025 2030 11% 1% 5% 3% 8% 2% 2% 6% 17% 20% 44% 16% 67% 74% 24% Lithium Nickel Cobalt Manganese Oxide (NCM) Lithium Iron Phosphate (LF
Slide 22: Anode & Cathode Material Demand Outlook
Anode & Cathode Material Demand Outlook Graphite Anode Demand (Kt) Cathode Material Demand (Kt) For personal use only 3,000 4,000 3,658 2,570 3,500 2,500 CAGR:19.4% CAGR: 20.2% 3,000 2,000 2,500 1,500 2,000 CAGR: 32.8% 1,058 1,460 1,500 CAGR: 31.9% 1,000 1,000 500 256 500 365 0 0 2020 2025 2030 2020
Slide 23: NOVONIX Operations and Technology
For personal use only 10 µm Graphite SC-622 Graphite SC-622 NOVONIX Operations and Technology
Slide 24: NOVONIX is a Leader in Battery Development and Material Technology
NOVONIX is a Leader in Battery Development and Material Technology For personal use only Battery Technology Solutions Testing Design Prototyping Technology accelerates R&D from years to weeks Developing New Applications and Partnerships Anode Materials Cathode Materials Energy storage partnership Co
Slide 25: NOVONIX Operations
NOVONIX Operations Recent News For personal use only NOVONIX – BTS (HQ) Bedford and Dartmouth, NS Canada • New facility recently secured in Employees – 39 (as of May 31) Halifax dedicated to developing our cathode materials business • BTS now includes >55,000 sqft in Bedford and Dartmouth, Nova Scot
Slide 26: Technology Leader in Materials for the Million-Mile Battery
NOVONIX is a Technology Leader in the Development of Materials for the “Million-Mile Battery” The Million-Mile Battery is expected to require four critical elements that NOVONIX develops: For personal use only Advanced R&D Long-life Long-life Long-life Cathodes Testing Anodes Electrolytes Product Ca
Slide 27: Complete Battery Cell Technology for Next Generation EV Batteries
NOVONIX’s Complete Battery Cell Technology is Leading the Way for Next Generation EV Batteries Demonstrated and Projected Performance Predicted to Exceed 1 Million Miles(1) For personal use only SC NCM622 / NOVONIX Anode Material + Adv. Electrolyte SC NCM622 / Gr + Adv. Electrolyte SC NCM622 / Gr NC
Slide 28: NOVONIX Technology will Continue to Drive Innovation
NOVONIX Technology will Continue to Drive Innovation For personal use only New Technologies to Continue to Drive Longer Battery Life Life Long Cathode and Lower Cost Materials and Energy Storage Sales of NOVONIX Advanced Electrolyte Technology Life Long Synthetic System Graphite Materials Differenti
Slide 29: Battery Technology Solutions Segment Is the Innovation Engine
Battery Technology Solutions Segment Is the Innovation Engine for NOVONIX Battery Technology Solutions (BTS) provides cutting edge technology that is highly sought after for R&D services to create the next gen battery — potentially accelerating R&D from years to weeks with proprietary technology For
Slide 30: NOVONIX HPC Technology Offers Best-In-Class Accuracy
NOVONIX HPC Technology Offers Best-In-Class Accuracy High Precision Coulometry (“HPC”) Cyclers For personal use only NOVONIX HPC CE Measurement vs. Competitors Spread in Commercial Cells can measure Columbic Efficiency extremely precisely Only HPC can clearly differentiate commercial cells Deliverin
Slide 31: Enhanced CE Accuracy Enables Rapid Battery Development
NOVONIX Enhanced CE Accuracy Enables Rapid Battery Development More accurate and precise CE measurements enable battery researchers to differentiate key performance indicators more rapidly than is possible with competing technologies For personal use only HPC Cycler Output – Electrolyte Additive Dev
Slide 32: Illustrating NOVONIX DTA System Measurements – Ice Example
Illustrating NOVONIX DTA System Measurements – Ice Example How to determine the amount of liquid in a sealed object? Think about melting ice… 1. Temperature of ice increases up to 0°C (melting point) For personal use only 2. Ice-water mixture stays at 0°C until all ice has been melted 3. Water begin
Slide 33: NOVONIX DTA System Provides Non-Destructive Measurement Solutions
NOVONIX DTA System Provides Non-Destructive Measurement Solutions Differential Thermal Analysis (DTA) For personal use only NOVONIX DTA System NOVONIX DTA Key Differentiating Features Differential Thermal Analysis (“DTA”) – Provides non-destructive measurements of changes to • During battery operati
Slide 34: Why Customers Choose NOVONIX Anode Material
Why Customers Choose NOVONIX Anode Material NOVONIX’s Competitive Advantage Key Customer Decision Drivers for Graphite Anode Material For personal use only Key Performance Synthetic Synthetic Why Important? Natural We deliver the performance required Measures Mid Grade High Grade Anode Materials • I
Slide 35: NOVONIX Anode Material Outperforms in Head-to-Head Testing
NOVONIX Anode Material Outperforms in Head-to-Head Testing For personal use only • NOVONIX offers improved Coulombic Efficiency (CE) compared to industry leading materials (including a Tesla Tesla Model S cell used as a reference benchmark) Improved Synthetic Columbic Natural • CE measures the elect
Slide 36: Anode Materials Manufactured In-House Using Proprietary Technology
NOVONIX Anode Materials Are Manufactured In-House Using Proprietary Technology Anode Materials Traditional Synthetic Graphite Manufacturing Process For personal use only • NOVONIX Anode Materials was established in March 2017 to commercialize the company’s anode material for the EV and energy storag
Slide 37: R&D Focused on Improving Scalability of Induction Furnaces
NOVONIX’s R&D has Focused on Improving Scalability of Induction Furnaces For personal use only Length-Wise Acheson Furnace Induction Furnace Graphitization Furnace Energy Efficiency Processing Time Emissions Control Atmospheric Control Product Quality Throughput/Scalability ASX: NVX OTCQX: NVNXF 36
Slide 38: DOE Awarded NOVONIX US$5.57M for New Furnace Technology
DOE Awarded NOVONIX US$5.57M for New Furnace Technology Development DOE Project Team Goals For personal use only Anode Materials First-in-the-world production scale World Leader in World-wide Leader in graphitization furnace State of the Art Anode Petroleum Coke High Temperature technology Materials
Slide 39: NOVONIX's Technology is the Green Choice
NOVONIX’s Technology is the Green Choice For personal use only Inputs Process Outputs • Clean sources • Proprietary technology means • Negligible emissions, less than - Carbon free resources fewer processing steps and less alternatives represent 50% energy input energy consumption • Longer lasting b
Slide 40: Agreements with the Two Largest Battery Makers
NOVONIX Has Agreements with the Two Largest Battery Makers, These Manufacturers Represent 30% of the Global Li-ion Battery Market(1) For personal use only SAMSUNG Conditional Supply Agreement SANYO Commercial Collaboration and R&D Collaboration • Supply of 500 tons of synthetic graphite anode • Non-
Slide 41: Successful ASX Raise Provides Capital for Next Phase of Growth
Successful ASX Raise Provides Capital for Next Phase of Growth Sources & Uses Use of Offer Proceeds For personal use only Sources(1) A$ million A. NOVONIX Anode Materials • Capex and working capital to scale production to 10,000tpa Institutional Placement 115 • Includes new site expansion and equipm
Slide 42: Phased Growth Plan For NOVONIX Anode Materials
Phased Growth Plan For NOVONIX Anode Materials Phase 3 (Large Scale) 150K Tonne / Yr(1) For personal use only Volume / tonnage phased growth Phase 2 (Medium Scale) 40K Tonne / Yr (1) Phase 1 (Current Ramp-up) 10K Tonne / Yr (1) 2023 2025 2030 2020 2025 2030 Anode Materials Anode Materials Anode Mate
Slide 43: DPMG: New Manufacturing Method for Anode and Cathode
DPMG: New Manufacturing Method for Anode and Cathode With multiple patent applications filed, NOVONIX’s Dry Particle Microgranulation (DPMG) technology delivers higher yields at lower costs For personal use only Input Material In-Process Product Graphite Materials 100% Yield (recovery of waste fines
Slide 44: DPMG Technology Offers Low Cost Cathode Synthesis
NOVONIX’s DPMG Technology Offers Low Cost Cathode Synthesis • Current Precursor Synthesis Process • NOVONIX DPMG For personal use only waste agitator waste metal water carbonates • Estimated total cathode material RAW MATERIALS CoSO4 RAW MATERIALS demand to increase from 365Kt CTSR MIXER – 1 MnSO4 9
Slide 45: DPMG Performs Head-to-Head with Commercial Leaders
DPMG Performs Head-to-Head with Commercial Leaders NOVONIX DPMG SC NCM622 Commercial SC NCM622 For personal use only 4.5 4.5 4.0 4.0 Potential (V) Potential (V) 3.5 3.5 3.0 3.0 2.5 2.5 2.0 2.0 0 50 100 150 200 0 50 100 150 200 Capacity (mAh/g) Capacity (mAh/g) ’s Cathode material, synthesized using
Slide 46: DPMG Commercialization Plan
DPMG Commercialization Plan • NOVONIX is funding $8.5 million for DPMG commercialization: • $3.5 million for integration / deployment of DPMG technology into NOVONIX’s cathode For personal use only materials, driving higher yield, less waste, higher performance and higher margins Current Funding • $
Slide 47: The Future of NOVONIX
The Future of NOVONIX Investment Highlights Our Goals for the Future of NOVONIX For personal use only Developer and supplier of the most accurate battery testing technology At the forefront of product innovation and development, leveraging in the world, providing leading customer and industry insigh
Slide 48: Strategic Investors & Partnerships
For personal use only 10 µm Graphite SC-622 Graphite SC-622 Strategic Investors & Partnerships
Slide 49: Strategic Investor: St Baker Innovation Fund
Strategic Investor: St Baker Innovation Fund For personal use only 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 to acqu
Slide 50: Strategic Alliance with Harper International
Strategic Alliance with Harper International Harper Company Overview Harper Partnership Overview For personal use only • Harper International (Buffalo, New York) is a global leader in • In December 2020, entered into a strategic complete thermal processing solutions and technical alliance with Harpe
Slide 51: Strategic Alliance with Emera Technologies
Strategic Alliance with Emera Technologies Emera Technologies Company Overview Emera Partnership Overview For personal use only • Emera Technologies is a wholly-owned subsidiary of Emera • In February 2021, announced its partnership Inc. with a dedicated and nimble team focused on with Emera Technol