Novonix Ltd · ASX:NVX
Novonix — Investor Presentation (April 2018)
41 slides from Novonix's investor presentation, Apr 11, 2018
Slide 1: General Presentation to the Queensland Investor Club
For personal use only GENERAL PRESENTATION TO THE QUEENSLAND INVESTOR CLUB Evening of 10 April 2018 accelerating the global development and adoption of Lithium Ion Battery technologies for a cleaner energy future 10 APRIL 2018 NOVONIX Limited (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: Agenda
For personal use only AGENDA • About NOVONIX Limited • Executive Team and Board • Market • NOVONIX Battery Testing Services (BTS) • PUREgraphite 10 APRIL 2018 NOVONIX Limited (ASX:NVX) 3
Slide 4: About NOVONIX
ABOUT For personal use only • Established Brand in Lithium-ion Battery Industry NOVONIX LIMITED (ASX: NVX) is an integrated developer and supplier of high performance materials, equipment and services for the global lithium-ion battery industry with operations in the USA and Canada and sales in over
Slide 5: Battery testing equipment and services customers
For personal use only Battery testing equipment and services 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. 10 APRIL 2018 NOVONIX Limited (ASX:NVX) 5
Slide 6: End to End Capability
For personal use only END TO END CAPABILITY CHEMISTRY MATERIALS SLURRY MAKING ELECTRODE MAKING CELL & PACK MAKING ELECTRONICS EQUIPMENT LEADING BATTERY CHEMISTRY TO LEADING BATTERY ELECTRONICS 10 APRIL 2018 NOVONIX Limited (ASX:NVX) 6
Slide 7: Two operating businesses in North America
For personal use only two operating businesses in North America Battery Testing Services Inc. • LEADING BATTERY TESTING • USA BASED DEVELOPER OF HIGH EQUIPMENT AND SERVICES PERFORMANCE GRAPHITE ANODE COMPANY BASED IN CANADA MATERIAL FOR THE LITHIUM ION WITH SALES IN 12 COUNTRIES BATTERY MARKET • EST
Slide 8: Corporate Overview
CORPORATE OVERVIEW For personal use only Board of Directors STOCK INFORMATION ASX Code NVX ASX Share Price [10 April 2018] A$0.90 52 Week Low - High A$0.47 – A$1.93 FINANCIAL INFORMATION @ 31 December 2017 Total Assets A$34 million Total Liabilities A$4.5 million Cash [incl PUREgraphite JV] A$6 mill
Slide 9: Executive Team
Executive Team For personal use only Managing Director Executive Director CEO PUREgraphite 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 Suzanne Yeates M
Slide 10: The Rise of Electric Cars
The Rise of Electric Cars – Source: Bloomberg New Energy Finance For personal use only By 2022 electric vehicles will cost the same as their internal combustion counterparts. That’s the point of liftoff for sales. (Note: Current annual total global vehicle sales is approximately 100 million vehicles
Slide 11: For personal use only
For personal use only 10 APRIL 2018 NOVONIX Limited (ASX:NVX) 11
Slide 12: Rapidly developing markets
Rapidly developing markets For personal use only Major EV announcements from global auto makers • 26 March – Nissan announces a target of 1 million EV sales by 2022 • 15 January – Ford plans $11 billion investment, 40 electrified vehicles by 2022 • 2 October – GM announces two more EV models within
Slide 13: All major auto companies are now offering EV models
all major auto companies are now offering EV models’ For personal use only Source: Bloomberg New Energy Finance 10 APRIL 2018 NOVONIX Limited (ASX:NVX) 13
Slide 14: Goldman Sachs Research
Goldman Sachs Research …being driven by ambitious EV targets by governments and auto-makers For personal use only 10 APRIL 2018 NOVONIX Limited (ASX:NVX) 14
Slide 15: Strong Market Dynamics: Rapid growth in production of lithium-ion batteries
Strong Market Dynamics: Rapid growth in production of lithium-ion batteries… For personal use only 6X growth in Lithium-ion megafactories by 2020 – Source: BENCHMARK MINERALS 10 APRIL 2018 NOVONIX Limited (ASX:NVX) 15
Slide 16: Battery Testing Services Inc.
For personal use only Battery Testing Services Inc. • NOVONIX Battery Testing Services Inc (BTS) is based in Canada and was spun out of Dr Jeff Dahn’s lab at Dalhousie University (DAL) in 2013 • NOVONIX BTS manufactures the most accurate battery cell test equipment in the world used by leading batte
Slide 17: Battery Testing Services Inc. – Cell Cycling
For personal use only Battery Testing Services Inc. Cell Cycling Why do cells fail this way? Cycles flat Dies Quickly Capacity Use HPC (High Precision Coulometry) to determine this point. What can you do? • High Precision Coulometry • Measure loss of electrons per cycle due to oxidation/reduction of
Slide 18: Coulombic Efficiency & Cell Life: Rapid NOVONIX HPC
0 4 8 12 16 20 2400 11.91 mAh/cycle Cap. (mAh) 3.956 mAh/cycle Ch. End. 2300 5.333 mAh/cycle 2.754 mAh/cycle For personal use only 2200 2100 Battery Testing Services Inc. 1 Coulombic Efficiency 0.996 CE & Cell Life: Rapid NOVONIX HPC TEST METHODS Capacity Loss 0.992 • Highest CE = longest life 2.2 C
Slide 19: Battery Testing Services Inc. – Breakthrough technology
For personal use only Battery Testing Services Inc. Developing breakthrough technology designed to help battery researchers invent safer - longer life - faster recharging battery cells As limits are pushed swelling of battery cells is a major issue • NOVONIX is developing non-destructive methods to
Slide 20: Differential Thermal Analysis (DTA)
Differential Thermal For personal use only Analysis (DTA) Prototype Lithium-ion Battery DTA Technology introduced for the first time by Dr Jeff Dahn at the 35th International Battery Seminar and Exhibition in Florida, USA March 2018 10 APRIL 2018 NOVONIX Limited (ASX:NVX) 20
Slide 21: NOVONIX BTS is expanding, recruiting new expert staff
And NOVONIX BTS is expanding, recruiting new expert staff For personal use only Image: Kathlyne Nelson PhD Image: Ken Broom NVX Sales Representative Lithium-ion Battery Industry Expert Started in January 2018 Starts in April 2018 • PhD graduate from the Jeff Dahn Research Group • 26 years in lithium
Slide 22: Technology embraced by tier one global companies
NOVONIX technology continues to be embraced by tier one For personal use only global companies with new and repeat sales • Strong sales for the half year with many new and repeat customers from around the world including 10 companies on the Fortune 500 list including world leading consumer electroni
Slide 23: Recent Highlights - Battery Testing Services (BTS)
Recent Highlights - Battery Testing Services (BTS) For personal use only • Largest order (>USD500k) received from one of the worlds largest electronics companies for a custom testing system to improve battery selection and supply chain quality control (names and details cannot be provided for commer
Slide 24: PUREgraphite
For personal use only • USA based Joint venture between NOVONIX and Coulometrics est in 2017 • Focused on production of graphite anode materials for lithium-ion batteries promoting: • Lower Cost • Sustainability • Longer Life • Security • Higher Charge Rate • Safety Dr Ed Buiel - CEO 10 APRIL 2018 N
Slide 25: Material Components of a Lithium Ion Battery
MATERIAL COMPONENTS OF A LITHIUM ION BATTERY For personal use only 10 APRIL 2018 NOVONIX Limited (ASX:NVX) 25
Slide 26: Tesla's Battery Pack
TESLA’S BATTERY PACK For personal use only 10 APRIL 2018 NOVONIX Limited (ASX:NVX) 26
Slide 27: How much anode material is inside?
HOW MUCH ANODE MATERIAL IS INSIDE ? For personal use only 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) 80 kWh
Slide 28: Artificial vs natural graphite anode materials
PUREgraphite has expertise and IP in both artificial For personal use only graphite (AG) and natural graphite (NG) anode materials, now biased to artificial graphite – why? • Our extensive research shows that AG consistently and significantly outperforms NG in terms of electrochemical efficiency (ce
Slide 29: Independent research predicts artificial graphite will dominate
Independent research also predicts that artificial For personal use only graphite anode material will dominate 10 APRIL 2018 NOVONIX Limited (ASX:NVX) 29
Slide 30: Intellectual Property
Intellectual Property For personal use only • PUREgraphite 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 of proprietary particle coating technology and spherical graphite p
Slide 31: Improvements in lithium-ion battery performance and manufacturing
Improvements in lithium-ion battery For personal use only performance and manufacturing • Most recent improvements in lithium- ion batteries has come from improvements in the cathode, electrolyte, separator and manufacturing • The anode has been overlooked and now presents a key area for further imp
Slide 32: Worldwide experience in electrochemical testing of graphite sources
We have world wide experience in electrochemical testing For personal use only of natural and artificial graphite sources for suitability in lithium-ion batteries In-house Knowledge of Artificial and Natural Graphite Sources • We are well advanced in selecting our preferred supply for our proprietar
Slide 33: Rapid battery materials R&D process
We have a rapid battery materials R&D process For personal use only Material Development Slurry HPC Testing Formulation Electrode Cell Assembly Coating 10 APRIL 2018 NOVONIX Limited (ASX:NVX) 33
Slide 34: Commercial grade battery making facilities
We have commercial grade battery making facilities For personal use only Production Scale Coating Electrode Roll Pressing Cell Winding 10 APRIL 2018 NOVONIX Limited (ASX:NVX) 34
Slide 35: Operational pilot plant in Chattanooga TN USA
For personal use only We have an operational pilot plant in Chattanooga TN USA • Grinding • Shaping • Particle Coating • Carbonization • Graphitization 10 APRIL 2018 NOVONIX Limited (ASX:NVX) 35
Slide 36: PUREgraphite anode material exceeding benchmarks
PUREgraphite anode material exceeding benchmarks For personal use only PUREgraphite’s high- performance anode material: PUREgraphite CELLS TESLA CELLS • consistently demonstrating very high electrochemical performance above benchmarks for commercially- available natural and artificial graphite anode
Slide 37: PUREgraphite focused on Extreme Fast Charging (XFC)
PUREgraphite now focused on Extreme Fast Charging (XFC) For personal use only • Charge rates for all EV batteries is a major issue today for the industry (75min, 90 kWh) • Graphite is a critical factor in achieving maximum charge rate • Fast charging is restricted by lithium plating on graphite anod
Slide 38: Update - PUREgraphite
Update - PUREgraphite For personal use only On track with material sourcing, process development, technical capability and path to market • Working closely with customers to develop high performance and low cost materials • Well advanced in developing a comprehensive strategy for sourcing feedstock
Slide 39: 2017 Highlights
2017 HIGHLIGHTS For personal use only • downstream integration into high value, high growth battery materials market • production JV with leading USA-based anode materials development group • acquisition of leading battery testing equipment and services company • raised $20.3 million for transaction
Slide 40: Overall Investment Highlights
OVERALL INVESTMENT HIGHLIGHTS For personal use only 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 12 countries
Slide 41: Corporate contacts
For personal use only CORPORATE New York City, New York, USA Contact: Nicolas Liveris Email: nick@novonixgroup.com 33 Irving Pl, New York, NY 10003 Telephone: +1 989 859-3213 Brisbane, Queensland, AUSTRALIA BATTERY TESTING SERVICES (BTS) PUREgraphite BATTERY Contact: Greg Baynton FACILITY MATERIALS