Novonix Ltd · ASX:NVX
Novonix — Investor Presentation (November 2024)
49 slides from Novonix's investor presentation, Nov 26, 2024
Slide 1: NOVONIX: Capital Raising to Accelerate Growth
November 2024 NOVONIX: Capital Raising to Accelerate Growth
Slide 2: Important Notices and Disclaimers
Important Notices and Disclaimers The information contained in this presentation (the “Presentation”) has been prepared by NOVONIX of the Company. You may wish to seek independent legal, financial, regulatory and taxation advice before Limited (ACN 157 690 830) (the “Company” or “NOVONIX” or “we” or
Slide 3: Important Notices and Disclaimers
Important Notices and Disclaimers Estimates and information concerning our industry and our business involve a number of assumptions and or recommend to clients that they should acquire, long and/or short positions in those assets, securities limitations. Although we are responsible for all of the d
Slide 4: Important Notices and Disclaimers
Important Notices and Disclaimers reliability, completeness or fairness of the information, opinions and conclusions contained in this planned new facilities, our ability to meet the demands, qualifications and timelines of our existing and Presentation or that this Presentation contains all materia
Slide 5: Important Notices and Disclaimers
Important Notices and Disclaimers Forward-looking statements are not guarantees of future performance or outcomes, and actual applicable securities laws. By accepting this Presentation you represent and warrant that you are entitled to performance and outcomes may differ materially from those made i
Slide 6: Executive Summary
Executive Summary • A$44.4 million (~US$29.0 million(3)) placement, representing 15% of issued capital • The placement includes a US$5 million (~A$7.7 million(3)) conditional placement to Phillips 66, NOVONIX’s largest shareholder (1) • Offer price of A$0.60 (“Offer Price”) per new share, representi
Slide 7: Overview of Proposed Capital Raising
Overview of Proposed Capital Raising
Slide 8: 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”) ─ Committed investment from Phillips 66 for US$5
Slide 9: Sources and Uses of Proceeds
Sources and Uses of Proceeds Sources and Uses Use of Proceeds(2) Property, Plant & Equipment Sources(1) A$ million • Proceeds used for installing and commissioning property, plant and equipment for 3K tpa at the Riverside facility by H1 2025 and continued build-out for commercial production to Insti
Slide 10: Equity Raising Timetable
Equity Raising Timetable* Activity Date Trading halt and announcement of Placements and SPP Tuesday, 26 November 2024 Placements Institutional Placement Bookbuild closes 5:00pm on Tuesday, 26 November 2024 Announcement of completion of Institutional Placement Wednesday, 27 November 2024 Trading halt
Slide 11: Company Overview
Company Overview
Slide 12: Providing Revolutionary Solutions to the Battery Industry
Providing Revolutionary Solutions to the Battery Industry Investment Highlights 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 volumes, to begin produ
Slide 13: Competitive Advantage Through Synergistic Operating Structure
Competitive Advantage Through Synergistic Operating Structure • Leading domestic supplier of • Commercializing patented synthesis • Provides industry leading Ultra-High battery-grade synthetic graphite technology Precision Coulometry cell testing equipment • Large scale and sustainable • Process tec
Slide 14: NOVONIX is Localizing the Synthetic Graphite Supply Chain
NOVONIX is Localizing the Synthetic Graphite Supply Chain NOVONIX Anode Material Progress & Advantages Key Strategic Relationships Tier 1 Customer Domestic Supply Agreements Producing high-performance synthetic graphite materials Anchor Customers for sustainably for local supply of Tier 1 battery an
Slide 15: Recently Announced: Binding Offtake Agreement with Stellantis N.V.
Recently Announced: Binding Offtake Agreement with Stellantis N.V. Overview • 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 its targets of reaching
Slide 16: Recently Announced: Binding Offtake Agreement with PowerCo
Recently Announced: Binding Offtake Agreement with PowerCo Overview • 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 • PowerCo is currently ram
Slide 17: Binding Offtake Agreement with Panasonic Energy
Binding Offtake Agreement with Panasonic Energy Overview • 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 America to supply EV ba
Slide 18: Path to Commercial Production at Riverside
Path to Commercial Production at Riverside On-Site Equipment to be Commissioned 1H2024 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 Equipment Deposits and comm
Slide 19: 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 Tier 1 Customers • Continuing to pursue additional supply agreements to allocate capacity from future
Slide 20: Anode Materials
Anode Materials
Slide 21: Graphite: The Forgotten Critical Mineral
Graphite: The Forgotten Critical Mineral Current State Solution • 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 weight, graphite is the pr
Slide 22: 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 • NOVONIX has agreements with companies whose facility • NOVONIX offers improved capacity retention compared plans account for ~42% of North American forecasted to
Slide 23: NOVONIX's Product Technology Advantage
NOVONIX’s Product Technology Advantage NOVONIX Advantage Product Engineered Specifically for Customers’ Needs • Applications such as electric vehicles and energy storage systems require differing properties: ─ Fast Charge ─ High Energy Density ─ Long Cycle Life • NOVONIX’s proprietary process provid
Slide 24: 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 Pricing and margins range depend on: • Product specification ─ Localization premium ─ U.S. Government initiatives: • Section 301 Tariffs – 25% tariff on
Slide 25: Riverside at Capacity with Current Offtake Agreements
Riverside at Capacity with Current Offtake Agreements Customers* Supporting Growth Contracted Customer Volumes1,2 200 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 125 ,000 tpa 32,000 ton
Slide 26: Cathode Materials
Cathode Materials NOVONDS.
Slide 27: 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 • In 2024 the global cathode active material ("CAM") market size value estimated at US$27B, with a forecasted revenue of >US$100B by 20301 • Nickel-bas
Slide 28: Cathode Technology Demonstration at Pilot Scale
Cathode Technology Demonstration at Pilot Scale Overview • 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 technology • Currently sampling
Slide 29: Cathode Synthesis: Engineering Scoping Study Results
Cathode Synthesis: Engineering Scoping Study Results NOVONIX engaged Hatch to Hatch Study Estimated Findings [FEL-1] provide a ‘Process • Fewer unit operations leads to simplified flowsheet Comparison Study’ by Capital Intensity Lowered by ~30 % • Higher mass feed rate due to ‘hydroxide-free’ feedst
Slide 30: 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 Single-Crystal NMC622 Normalized electrochemical results in 1Ah pouch cell show that surface- coated NOVONIX NMC622 has comparable electrochemical per
Slide 31: Cathode Materials Technology Partnerships
Cathode Materials Technology Partnerships CBMM ICoNiChem Widnes Limited • 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 niobium • ICoNiChem is a wo
Slide 32: Goals for the Future of NOVONIX
Goals for the Future of NOVONIX 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 cash flow Forefront of p
Slide 33: Contact Information
Contact Information Corporate Operations Dr. Chris Burns, CEO 1029 West 19th Street Chattanooga, Tennessee Robert Long, CFO USA, 37408 Suzanne Yeates, Secretary Scott Espenshade, Investor Relations 353 Corporate Place Chattanooga, Tennessee USA, 37419 Investor Relations: IR@novonixgroup.com 177 Blue
Slide 34: Risks, Underwriting Agreement and Foreign Selling Restrictions
Risks, Underwriting Agreement and Foreign Selling Restrictions
Slide 35: Risk Factors
Risk Factors This section discusses some of the key risks associated with any investment in NOVONIX, together with the commitment agreement between the Company and Phillips 66 is terminated or if the Company's risks relating to participation in the Offer, which may affect the value of NOVONIX shares
Slide 36: Risk Factors (cont.)
Risk Factors (cont.) Additionally, the Company's business depends on technology and is subject to technological change. If the materials needed for its business may harm its customer relationships or require the Company to find Company fails to capitalise upon technological change or anticipate and
Slide 37: Risk Factors (cont.)
Risk Factors (cont.) 7. Tax law and application successfully and profitably growing its battery materials, consulting and technology business. There are considerable financial risks in this. The application of and change in relevant tax laws (including income tax, goods and services tax (or equivale
Slide 38: Risk Factors (cont.)
Risk Factors (cont.) 13. Force majeure legal expenses, all of which could adversely affect its business, results of operations, financial condition and reputation. The Company's future prospects and operating and financial performance now or in the future may be adversely affected by risks outside t
Slide 39: Risk Factors (cont.)
Risk Factors (cont.) The Company's patent applications may not result in issued patents or our patent rights may be contested, 22. Underwriting risk circumvented, invalidated, or limited in scope, any of which could have a material adverse effect on its ability to prevent others from interfering wit
Slide 40: Summary of Underwriting Agreement
Summary of Underwriting Agreement Citigroup Global Markets Australia Pty Ltd and Jefferies (Australia) Pty Ltd (the “Joint Lead Managers ") will ‒ ceases to have effect, otherwise than in accordance with its terms; or be the bookrunners, joint lead managers and underwriters of the Placement. The Com
Slide 41: Summary of Underwriting Agreement (cont.)
Summary of Underwriting Agreement (cont.) • (*) responses to the due diligence questionnaire or any other information supplied by or on behalf of the • the Ukraine and Russia conflict that is ongoing at the date of the Underwriting Agreement; Company to the Joint Lead Managers in relation to the Gro
Slide 42: Summary of Underwriting Agreement (cont.)
Summary of Underwriting Agreement (cont.) ─ any acts of God or other natural forces, civil unrest or other civil disturbance, currency • The Underwriting Agreement provides that the Joint Lead Managers may not terminate the restriction, embargo, action or inaction by a government agency, or any othe
Slide 43: Foreign Selling Restrictions
Foreign Selling Restrictions This document does not constitute an offer of new ordinary shares ("New Shares") of the Company in any Any financial information contained in this document has been prepared in accordance with Australian jurisdiction in which it would be unlawful. In particular, this doc
Slide 44: Foreign Selling Restrictions (cont.)
Foreign Selling Restrictions (cont.) European Union (excluding Austria) Israel This document has not been, and will not be, registered with or approved by any securities regulator in the The New Shares have not been registered, and no prospectus will be issued, under the Israeli Securities European
Slide 45: Foreign Selling Restrictions (cont.)
Foreign Selling Restrictions (cont.) New Zealand immediately. You may not forward or circulate this document to any other person in Singapore. This document has not been registered, filed with or approved by any New Zealand regulatory authority Any offer is not made to you with a view to the New Sha
Slide 46: Foreign Selling Restrictions (cont.)
Foreign Selling Restrictions (cont.) person in the Abu Dhabi Global Market or the Dubai International Financial Centre. United Kingdom Neither this document nor any other document relating to the offer has been delivered for approval to the Financial Conduct Authority in the United Kingdom and no pr
Slide 47: Appendix
Appendix
Slide 48: Proprietary Process Technologies Lead the Clean Energy Transformation
Proprietary Process Technologies Lead the Clean Energy Transformation NOVONIX ESG Commitment Environmental Benefits of NOVONIX Technology Environmental Anode Technology Cathode Technology Our mission is to develop innovative, sustainable technologies and high- Inputs • Clean power sources1 • Reduced
Slide 49: NOVONIX is at the Forefront of Battery Technology
NOVONIX is at the Forefront of Battery Technology 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 Analytical materials lab manufa