Why did Novonix (ASX: NVX) share price rise 32% in three weeks?

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NS Novonix Ltd (ASX: NVX) Stock prices continue to be high after a temporary fall at the beginning of the month. This is despite no price-sensitive announcements since September 3, 2021.

In the afternoon transaction, shares in battery materials and technology companies were exchanged for $ 6.92, up 7.62%. The company’s share price is down less than 3% from its record high of $ 7.11 last month.

To put today’s profits in context S & P / ASX200 Index (ASX: XJO) decreased by 0.1% at the time of writing. The remarkable move in the value of battery companies positions it as the fourth highest performing share in today’s benchmark index.

Dominant green and electric tailwind

There is no company-specific news on the market, but there is a catalyst in the “green” space. The culmination of positive indicators to promote more sustainable efforts could benefit Novonvix’s share price.

First, lithium, a common battery material, has been on an upward trajectory for the past few weeks. According to the Mining Journal, the price of lithium hydroxide is approaching US $ 30,000 per ton. In particular, this is above the previous record price of US $ 25,000 per ton in 2018.

Novonix does not provide lithium, but produces a “PURE graphite”. It is labeled by the company as an environmentally friendly, low cost graphite anode for lithium-ion batteries. As the demand for synthetic graphite anode materials grows, Novonix will provide a supply.

Second, the Australian Government is involved in another recent development that embodies the evolution of the green transition.Yesterday, Kuomintang agreed on an agreement that the country would aim for Net zero emissions By 2050.

Finally, the last potential catalyst for Novonix’s stock price includes the iconic electric vehicle (EV) maker. Tesla, Inc. (NASDAQ: TSLA). Overnight, a company led by Elon Musk entered a $ 1 trillion club. The moment of the milestone followed the car rental company. Hearts, Order 100,000 EVs to add to the rental fleet.

In response, many ASX-listed battery-focused resource companies experienced price spikes during today’s session.

Novonix shares are off

In the last 12 months, Novonix has created many very happy and wealthy individuals. Surprisingly, Novonix’s share price rose 473% during the last year, Market first Of $ 3.3 billion. This is despite the company’s revenue of only $ 5.23 million in 2009.

The rise in company valuations is nothing more than a meteorite, but some fund managers are still Value proposition..

Why did Novonix (ASX: NVX) share price rise 32% in three weeks?

Source link Why did Novonix (ASX: NVX) share price rise 32% in three weeks?

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