Novonix's Generation 3 Furnaces Production Meets Targets, Lowering Costs

Novonix, the Australian battery materials maker, has seen a significant increase in its American depositary receipts following the announcement that the production of its Generation 3 Furnaces is meeting targets. The company also revealed that costs for future facilities are projected to be lower than previously expected.

Strong Performance and Expansion Plans

Novonix shared that its facility in Riverside, Tenn., has successfully met targets for throughput, cost, and sustainability in the production of the furnaces. As a result of this success, the company is doubling the production capacity target at this facility, aiming for up to 20,000 metric tons per annum.

Building for the Future

In addition to expanding its Riverside facility, Novonix is working closely with the U.S. Department of Energy to explore funding opportunities to support further expansion plans. These collaborative efforts are expected to result in lower capital costs for future facilities compared to initial projections.

This positive development has driven Novonix's stock price to rise 16% in premarket trading, reaching $2.16. It comes as a welcome change for investors after a challenging period where share prices had fallen by more than two thirds over the past year.