Battery tester pockets $500,000 loan from Canadian government
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ASX-listed battery developer Novonix has won a $500,000 loan from the Canadian government to market its battery-testing technology.
Novonix (ASX:NVX) describes its product as “the highest accuracy battery cell test equipment in the world”.
Traditional battery testing technology can take years to predict battery cell life and performance but Novonix can make accurate predictions within weeks — even identifying batteries likely to wane towards the end of life.
NVX specialises in lithium-ion batteries used to power electric vehicles, mobile phones and energy storage units. Clients include Panasonic, Bosch and “a number of major global automakers” that cannot be identified for commercial reasons, the company says.
“Novonix is proud to provide a critical product that helps researchers around the world create better, longer-lasting batteries,” said co-founder Dr Chris Burns.
“Lithium-ion batteries are becoming more ubiquitous in our society and everyone will benefit from advancements in battery technology.”
Demand for lithium ion batteries is growing quickly among electronics makers and electric car manufacturers, with the high-value battery market valued at up to $US60 billion in the US alone.
Key player Elon Musk’s Tesla is leading the charge and earlier this year announced it would build the world’s largest grid battery in South Australia.
As more manufacturers jump on the lithium ion bandwagon, prices for battery-powered products are expected to drop.
Bloomberg predicts the cost of electric cars will equal traditional petrol and diesel cars by 2022, pushing lithium-ion megafactory capacities to grow by a factor of six by 2020.
US-based Novonix joined the ASX last month after the business was acquired by GraphiteCorp in June.
US defence strategist Admiral Robert J. Natter was appointed to the board in July, to help the company access defence, marine and aerospace markets.
Novonix has so far sold about 1000 of its testing units, booking $152,000 in sales for the last quarter but burning through $438,000.
The company has $5.8 million in the bank and expects to spend $2.4 million this quarter.
Novonix’s shares were trading up slightly at $1.18 in afternoon trade.