Novonix (NVX) Q3 2024 TU earnings summary

Executive summary

• Progressed equipment installation at Riverside facility, targeting 3,000 tpa synthetic graphite production by H1 2025, with key offtake agreements with Panasonic Energy and KORE Power and plans to expand to 150,000 tpa capacity.

• Secured $100 million DOE grant, $103 million in tax credits, and $9 million in grant reimbursements to support Riverside buildout and commercialization.

• Strategic investments from LG Energy Solution and Phillips 66 total $180 million, with additional partnerships and technology agreements advancing cathode and anode materials.

• Appointed Robert Long as CFO and advanced the public listing of Axon Graphite Limited, including the Mt Dromedary natural graphite project.

• Focused on commercializing patented all-dry, zero-waste NMC cathode synthesis technology, with pilot line operational at 10 tpa and new patents granted in Europe.

Financial highlights

• Ended Q3 with US$37.4 million in cash and received $9 million in DOE grant reimbursements for the nine months ended September 30, 2024.

• Invested US$7.5 million in property, plant, and equipment during Q3, mainly for Riverside expansion.

• Net cash used in operating activities for the quarter: US$8.6 million; for nine months: US$30.8 million.

• Net cash used in investing activities for the quarter: US$0.8 million; for nine months: US$8.6 million.

• Net cash used in financing activities for the quarter: US$0.9 million.

Outlook and guidance

• Riverside's first 3,000 tpa production line to be operational in H1 2025, with commercial deliveries to Panasonic expected in late 2025.

• Plans to expand Riverside to 20,000 tpa and develop a new 30,000 tpa greenfield facility, targeting eventual 150,000 tpa capacity.

• Ongoing discussions with potential customers to secure additional supply agreements and strategic partnerships.

• Continued focus on commercializing cathode materials and integrating recycled feedstocks.