Battery materials player Novonix (ASX:NVX) spiked almost 40 per cent this morning after announcing it will supply lithium-ion battery anode material to Samsung.

Novonix will deliver 500 tonnes of material to Samsung beginning in October 2020 and this could increase in future years.

The agreement is subject to final quality assurance processes, and pricing remained confidential.

While Samsung is better known for its phones and TVs, it also makes batteries for its own devices as well as for electric vehicles — it is a core supplier for over 30 projects.

                                      Samsung’s Lithium-ion Batteries (Pic: Novonix)

Novonix managing director Philip St Baker, who is the son of BRW Rich lister Trevor St Baker, told shareholders this morning the company was “extremely honoured” to supply Samsung.

The material will be made through Novonix’s PUREgraphite joint venture with Tennessee engineering consultant Coulometrics.

PUREgraphite, develops, manufactures and sells high performance anode materials into the global lithium-ion battery market. The anode is the positive terminal of a battery – important because this is the end which electricity flows into.

The Australian company began in 2012 as graphite miner Graphite Corp before a reverse takeover of Novonix.

Shares rose as much as 38 per cent in early trading this morning to hit an intra-day peak of 80c – a level not seen since April 2018.

Read More: 

Noxonix doubles down on its US graphite play with $11m of debt funding

Novonix starts producing battery cells in Canada; shares rise 5pc

In other ASX small cap batteries news today:

Lithium Australia (ASX:LIT) announced this morning its partnership with Chinese battery and energy storage firm DLG group was officially in business. The first commercial shipment of energy storage products had arrived in Australia.

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