Novonix Ltd · ASX:NVX
Novonix — Investor Day (December 2024)
50 slides from Novonix's investor day presentation, Dec 6, 2024
Slide 1: NOVONIX Investor Day
December 5, 2024 For personal use only NOVONIX Investor Day
Slide 2: Important Notice and Disclaimers
Important Notice and Disclaimers The information contained in this presentation (the “Presentation”) has been prepared by NOVONIX Limited (ACN 157 690 the actual results, performance or achievements of the Company to be materially different from any future results, 830) (“the Company” or “NOVONIX”)
Slide 3: Team Introductions
For personal use only NOVONIX Team Introductions
Slide 4: Dr. Chris Burns, Chief Executive Officer
Dr. Chris Burns, Chief Executive Officer • Co-developed the breakthrough Ultra High Precision Coulometry (UHPC) technology with Professor Jeff Dahn For personal use only • Co-founded NOVONIX Battery Technology Solutions in Canada in 2013 • Former Senior Research Engineer with Tesla • As Tesla’s firs
Slide 5: Our Executive Team
Our Executive Team For personal use only Robert Long, CFO Rashda Buttar, CLAO Darcy MacDougald, COO • Over 25 years of experience in the business • Over 25 years of corporate legal experience • Previously President of NOVONIX Battery and finance sectors. in senior roles for US publicly listed Techno
Slide 6: Board of Directors & Advisors
Board of Directors & Advisors Board of Directors Advisors For personal use only Admiral Robert J. Natter Tony Bellas Sharan Burrow AC Ron Edmonds Dr. Jeff Dahn Dr. Mark Obrovac Chairman & Deputy Chairman & Non-Executive Director Non-Executive Director Chief Scientific Advisor Sponsored Researcher No
Slide 7: Company Overview
For personal use only Company Overview
Slide 8: Competitive Advantage Through Synergistic Operating Structure
Competitive Advantage Through Synergistic Operating Structure For personal use only • Leading domestic supplier of • Commercializing patented cathode • Provides industry leading Ultra-High battery-grade synthetic graphite synthesis technology Precision Coulometry cell testing equipment • Large scale
Slide 9: Providing Revolutionary Solutions to the Battery Industry
Providing Revolutionary Solutions to the Battery Industry Investment Highlights For personal use only Leading U.S. based battery materials and technology company with lower carbon footprint Binding Tier 1 offtake agreements with Stellantis, PowerCo and Panasonic Energy for all Riverside production v
Slide 10: Proprietary Process Technologies Lead the Clean Energy Transformation
Proprietary Process Technologies Lead the Clean Energy Transformation Environmental Benefits of NOVONIX Technology For personal use only NOVONIX ESG Commitment Environmental Anode Technology Cathode Technology Our mission is to develop innovative, sustainable technologies and high- Inputs • Clean po
Slide 11: Key Highlights Driving Future Growth
Key Highlights Driving Future Growth • Signed binding offtake agreements with Stellantis, PowerCo, and Panasonic Energy with target volumes for all Continuing to Secure planned capacity at Riverside For personal use only Tier 1 Customers • Continuing to pursue additional supply agreements to allocat
Slide 12: Battery Technology Solutions
For personal use only Battery Technology Solutions
Slide 13: NOVONIX is at the Forefront of Battery Technology
NOVONIX is at the Forefront of Battery Technology For personal use only UHPC Hardware R&D Services Enables Quick Reliable Materials Development Cell Design and Prototyping Cell Testing Predictions of Battery Lifetime and Characterization Pouch and cylindrical cell Diagnostic tools and UHPC Analytica
Slide 14: NOVONIX Ultra-High Precision Coulometry (UHPC)
NOVONIX Ultra-High Precision Coulometry (UHPC) For personal use only ASX: NVX | Nasdaq: NVX Investor Day, December 5, 2024 14
Slide 15: NOVONIX UHPC Delivers More Precision and Accuracy
NOVONIX UHPC Delivers More Precision and Accuracy For personal use only 1.008 1 System 2x St. Dev Coulombic Efficiency (CE) Coulombic Efficiency (CE) NVX +/- 0.00004 40 ppm 1.004 0.9995 UHPC Cycler 1 +/- 0.00196 1960 ppm 1 0.999 NOVONIX UHPC Cycler 2 +/- 0.00146 1450 ppm 0.996 0.9985 Cycler 3 +/- 0.
Slide 16: NOVONIX Research & Development Services
NOVONIX Research & Development Services For personal use only R&D Services We support customers with: Industry Insight Flexible Prototyping Facility Extensive Testing Capabilities Data Analysis & Reporting Evaluation Services ASX: NVX | Nasdaq: NVX Investor Day, December 5, 2024 16
Slide 17: Cathode Materials
For personal use only Cathode Materials
Slide 18: Patented Cathode Synthesis Provides Clean and Simple Process
Patented Cathode Synthesis Provides Clean and Simple Process Opportunity Overview A Closer Look at the NOVONIX All-Dry, Zero-Waste Synthesis Process For personal use only • In 2024 the global cathode active material ("CAM") market size value estimated at US$27B, with a forecasted revenue of >US$100B
Slide 19: Cathode Technology Demonstration at Pilot Scale
Cathode Technology Demonstration at Pilot Scale Overview For personal use only • 2021: NOVONIX began development of its patented all-dry, zero-waste cathode synthesis technology • July 2023: Commissioned pilot line with a nameplate capacity of 10 tpa to demonstrate scalability of NOVONIX’s technolog
Slide 20: Cathode Synthesis: Engineering Scoping Study Results
Cathode Synthesis: Engineering Scoping Study Results Hatch Study Estimated Findings [FEL-1] For personal use only NOVONIX engaged Hatch to provide a ‘Process • Fewer unit operations leads to simplified flowsheet Comparison Study’ by Capital Intensity Lowered by ~30 % • Higher mass feed rate due to ‘
Slide 21: NMC622 Cathode Cycling Performance Competitive with Commercial Materials
NMC622 Cathode Cycling Performance Competitive with Commercial Materials Full-Cell Cycling Performance of NOVONIX SEM Images of Single-Crystal NMC622 For personal use only Single-Crystal NMC622 Normalized electrochemical results in 1Ah pouch cell show that surface- coated NOVONIX NMC622 has comparab
Slide 22: Cathode Materials Technology Partnerships
Cathode Materials Technology Partnerships CBMM ICoNiChem Widnes Limited For personal use only • Joint Development Agreement focused on nickel-based • Joint Collaboration Agreement focused on sustainable cathode materials cathode material feedstock • CBMM is a global leader in the production of niobi
Slide 23: Anode Materials
For personal use only Anode Materials
Slide 24: Graphite: The Forgotten Critical Mineral
Graphite: The Forgotten Critical Mineral Current State Solution For personal use only • The North American market for active materials is • If China were to cease exporting of synthetic graphite forecasted to grow by a factor 10 from 2023 to 2030. By it would have a significant impact on global weig
Slide 25: NOVONIX is Localizing the Synthetic Graphite Supply Chain
NOVONIX is Localizing the Synthetic Graphite Supply Chain NOVONIX Anode Material Progress & Advantages Key Strategic Relationships For personal use only Tier 1 Customer Domestic Supply Agreements Producing high-performance synthetic graphite materials Anchor Customers for sustainably for local suppl
Slide 26: Production Capacity will Benefit From Expected Demand
Production Capacity will Benefit From Expected Demand North America Graphite Shortfall (K tpa)1, 2 Anode Material Outperforms in Testing For personal use only • NOVONIX has agreements with companies whose facility • NOVONIX offers improved capacity retention compared plans account for ~42% of North
Slide 27: NOVONIX's Product Technology Advantage
NOVONIX’s Product Technology Advantage NOVONIX Advantage Product Engineered Specifically for Customers’ Needs For personal use only • Applications such as electric vehicles and energy storage systems require differing properties: ─ Fast Charge ─ High Energy Density ─ Long Cycle Life • NOVONIX’s prop
Slide 28: NOVONIX Anode Materials Processing Steps
NOVONIX Anode Materials Processing Steps Optional Steps For personal use only Agglomeration Calcination Precursor Precursor Micronizing and Crushing Classification Shaping Raw Material: Petroleum Coke De-Agglomeration Sieving / Magnetic Separation and Particle Packaging Calcination Coating Graphitiz
Slide 29: Riverside at Capacity with Current Offtake Agreements
Riverside at Capacity with Current Offtake Agreements Customers* Supporting Growth Contracted Customer Volumes1,2 For personal use only 200 6-year commitment for up to a target volume of 115,000 tonnes starting in 2026 175 to cell manufacturers LGES & Samsung 150 5-year commitment for a minimum of 1
Slide 30: Recently Announced: Binding Offtake Agreement with Stellantis N.V.
Recently Announced: Binding Offtake Agreement with Stellantis N.V. Overview For personal use only • Stellantis is one of the world’s leading automakers – brands including Dodge, Fiat, Jeep, and Ram • Stellantis plans to invest more than €50 billion over the decade in electrification to deliver on it
Slide 31: Recently Announced: Binding Offtake Agreement with PowerCo
Recently Announced: Binding Offtake Agreement with PowerCo Overview For personal use only • Volkswagen Group is bundling its global battery activities in the European company PowerCo SE. PowerCo plans to build three gigafactories in Europe and North America with a total capacity of up to 200 GW • Po
Slide 32: Binding Offtake Agreement with Panasonic Energy
Binding Offtake Agreement with Panasonic Energy Overview For personal use only • Panasonic Energy is a leading developer of battery cell technology for EV and ESS batteries in the U.S. • Panasonic Energy has developed relationships with Tesla, Honda, Toyota, Mazda, Subaru, Ford, and Lucid in North A
Slide 33: Our Strategic Relationship with LG Energy Solution
Our Strategic Relationship with LG Energy Solution Overview For personal use only • LGES is a leading U.S. based developer of battery cell technology for EV and ESS Batteries • LGES has developed relationships with GM, Honda, Hyundai and Stellantis in North America to supply EV batteries • LGES plan
Slide 34: Path to Commercial Production at Riverside
Path to Commercial Production at Riverside On-Site Equipment to be Commissioned 1H2024 For personal use only 2Q2024 2H2024 February 2024 Announcement of the offtake agreement with Panasonic Energy Installing Capacity to 3K tpa Grinding/Shaping Riverside in process of receiving, installing 2025 Equip
Slide 35: Demonstrated Pathway to Profitable Production in the U.S.
Demonstrated Pathway to Profitable Production in the U.S. Overview of Riverside Facility Unit Market & Government Influence on Economics1 Economics For personal use only $12.00 Up to Up to Pricing and margins range depend on: $0.45/kg $0.50/kg $7-10/kg • Product specification $10.00 ─ Localization p
Slide 36: NOVONIX Anode Materials Phase
NOVONIX Anode Materials Phase 2 Greenfield Plan Overview Site Rendering For personal use only • A new Greenfield facility is planned to support an initial 30,000 tonnes per annum (tpa) by 2028, with potential to expand up to 75,000 tonnes • Facility will be located in the southeastern United States
Slide 37: Goals for the Future of NOVONIX
Goals for the Future of NOVONIX For personal use only Scaling anode materials production Patented, All-Dry Zero-Waste Cathode technology capacity to 150K tpa supported by our propriety processing Recognized battery Highly developed IP with technology leader leading market positions Foresee strong ca
Slide 38: Contact Information
Contact Information Corporate Operations For personal use only Dr. Chris Burns, CEO 1029 West 19th Street Chattanooga, Tennessee Robert Long, CFO USA, 37408 Suzanne Yeates, Secretary 353 Corporate Place Scott Espenshade, Investor Relations Chattanooga, Tennessee USA, 37419 Investor Relations: IR@nov
Slide 39: Appendix
For personal use only Appendix
Slide 40: U.S. Legislation Providing Direct Support
U.S. Legislation Providing Direct Support Section 301 • Section 301 includes a 25% tariff on artificial graphite imported from China to help remove unfair market distortions imposed by Tariffs China’s anticompetitive behaviors and size advantage in the battery materials sector For personal use only
Slide 41: NVX Customer Progression Towards Supply Contract
NVX Customer Progression Towards Supply Contract Sample Size and Reference Customers For personal use only • 1 – 10 kg test sample for physical and basic electrochemical performance Pre- A Samples • Material must meet basic requirements when evaluated in reference cell typically built on cell maker
Slide 42: Chinese Oversupply Weighing on Pricing
Chinese Oversupply Weighing on Pricing Chinese Market Offers Wider Chinese Market Pricing for Anode and Needle Coke Range of Products For personal use only 12,000 • High-End Artificial Graphite – (>355mAh/g) – 53,800 CNY/mt 10,000 • Mid-End Artificial Graphite – (350-355 mAh/g) NVX Term Contract Ran
Slide 43: Product Performance
Product Performance C/3-C/3, NMC811, 2.8-4.2V, 40°C Charge Rate Map, NMC811, 2.8-4.2V, 40°C 2C Discharge, NMC811, 2.8-4.2V, 40°C For personal use only 1.2M LiPF6 EC:EMC:DMC (25:5:70) 2%VC 1.2M LiPF6 EC:EMC:DMC (25:5:70) 2%VC 1.2M LiPF6 EC:EMC:DMC (25:5:70) 2%VC 0.2C 0.5C 1C Commercial Anode 1 Commer
Slide 44: NOVONIX has Validated a Differentiated Technology Ready to Scale
NOVONIX has Validated a Differentiated Technology Ready to Scale For personal use only Length-Wise NOVONIX Continuous Acheson Furnace Graphitization Furnace Induction Furnace Induction Furnace Energy Efficiency Processing Time Emissions Control Atmospheric Control Product Quality Throughput/Scalabil
Slide 45: Enabling Domestic US Supply Chain for EV Battery Grade Synthetic Graphite
Enabling Domestic US Supply Chain for EV Battery Grade Synthetic Graphite Chinese Synthetic Graphite Supply Chain NOVONIX Supply Chain For personal use only NOVONIX facilitates a cleaner, more secure, supply chain of high-quality synthetic anode material to the North American market vs. Chinese comp
Slide 46: Demonstration of Process Scalability is Essential
Demonstration of Process Scalability is Essential Lab Scale Pilot Scale For personal use only • Synthesis of revolutionary material in the lab is • Demonstrates process credibility and claim ‘easy’ verification ─ Lower barrier of entry ─ Leverages scaled down versions of production ─ Material qualit
Slide 47: Early 'All-Dry' Methods Were Cast Aside for Wet Processes
Early ‘All-Dry’ Methods Were Cast Aside for Wet (Co-Precipitation) Processes Early all-dry ternary cathode synthesis methods resulted in poor intra-particle homogeneity For personal use only Commercial NMC622 Solid-State NMC622 Conventional Process All-Dry Process Poor intraparticle homogeneity lead
Slide 48: Advanced Imaging Diagnostics for NOVONIX All-Dry, Zero-Waste Cathode
Advanced Imaging Diagnostics for NOVONIX All-Dry, Zero-Waste Cathode Commercial Mid-Nickel Reference Powder Commercial Mid-Nickel Reference Powder For personal use only • Scanning Transmission Electron Microscopy (STEM) • Scanning Transmission Electron Microscopy (STEM) Imaging Imaging ─ Homogeneous
Slide 49: Conditional Proposal - Mount Dromedary & Axon Graphite
Conditional Proposal - Mount Dromedary & Axon Graphite World class, large-scale natural high-grade flake graphite project For personal use only • Conditional 50/50 Joint Venture with NVX “merging” Mount Dromedary asset in exchange for shares in LEL subsidiary, Axon Graphite • Axon Graphite holds the
Slide 50: Equity Raising Overview
Equity Raising Overview • A$52.1 million (~US$34.0 million(1)) capital raising comprising of a placement in two tranches: ─ Underwritten(2) institutional placement to raise approximately A$44.4 million (~US$29.0 million(1)) (“Institutional Placement”) For personal use only ─ Committed investment fro