Extreme fast charging, 1000tpa plant on target & est Profits

Just got this summary of the Novonix half yearly report afternoon I thought I'd share with you.

The impressive quality of the PUREgraphite anode ensures that Novonix will receive revenues in the top range of its $US8,000 to $US20,000 per tonne (read why in the Chairman's address below)

If you read the Chairman and MD address at the 2017 AGM below.

https://www.asx.com.au/asxpdf/20171121/pdf/43pf0l7j57c8rl.pdf

The PUREgrahite business plan has two streams. The first stream is to, as early as possible, establish a 1,000 tpa anode material production capability and to start manufacturing and selling graphite anode material targeting specialist applications in the US domestic market which is estimated to be approximately 5,000 tpa.

PUREgraphite is on target for first production, at small volumes, within the Tennessee facility by the end of 2017 and establishing a 1,000 tpa production capability by 30 June 2018. In terms of business development and future sales, NOVONIX has engaged with many prospective customers and has several significant customers ready to trial its anode materials on commencement of production. The second stream of the PUREgraphite business plan aimed at supplying the large-scale EV market and includes customer engagement, product qualification, large-scale production planning (up to 100,000 tpa) and success with the first stream to establish PUREgraphite’s credentials as a producer in the market.

Page 11 of the Chairman and MD's Address

In contrast, LIB graphite anode materials are selling for between US$8,000 per ton to US$20,000 per ton depending on a wide range of characteristics including reversible capacity, first cycle efficiency, cycle life, coulombic efficiency, purity, particle morphology, energy density, and specific energy.

This half yearly report states that the PUREgraphite anode produced is "the best we have seen of any material". The page of the half yearly has already been posted on hc.

Now lets look at estimated Revenues for 1,000tpa plant coming on stream in 3 months time and the larger 100,000tpa plant currently being planned.

You can see why the company is prioritising the PUREgraphite plants over the Mt Dromedary mine. The revenues and profits are compelling.

These numbers are back of the envelope so we need to keep an eye on updates and announcements by the company as the company gets closer to production in June 2018.




EXTREME FAST CHARGING

This is the first time we have heard of this extreme fast charging feature of the PUREgraphite anode outside the Facebook page. See below.




The chart above displays what these two Facebook posts describe below.

The TESLA super charge is the fastest in the world, charging 90kWh in 75min. But the PUREgraphite EXTREME Fast Charge does the 90kWh in less than 10min.





PUREgraphite

12 February at 13:23 ·
One of the biggest challenges for EVs is fast charging. Tesla offers the fastest charging system through their network of super chargers but these systems only charge at 1.25C for the first 50% and 0.6C for the last 50% for a total charge time of about 1h and 15 mins. Charge rate is limited by the graphite anode material and efforts to replace graphite either result in a large penalty in energy density and/or battery life. Graphite materials that exhibit faster charge rate are a key focus of PUREgraphite’s R&D efforts.



PUREgraphite

10 February at 10:19 ·
PUREgraphite is developing new graphite materials that will enable batteries to charge faster, reducing charge times from over an hour to less than 10 minutes. Stay tuned...

New Hires



The company continues to hire experts in the industry, with Dr Kathlyne Nelson joining the Sales team. Her background is from Dalhousie University (same as Dr Chris Burns) and is an expert with LIBs, specifically improving lifespan, performance and cost of batteries.

Mr Ken Broom has also been hired. His experience is quite interesting. He is an expert in electricity grids. Having being responsible for 4 grids in China and the previous COO of China BAK Battery that supplies 1.5GW of power generation last year.

Paul's comments on HC seem to be onto something. The priority seems to be on the artificial graphite/natural graphite blend that the company states that can secure from international contracts. It seems like the lack of detail about the Mt Dromedary graphite deposit in the half yearly report together with this part of the presentation that they are possibly looking at either delaying this development or selling it. If it means securing the funding for the 100,000tpa plant selling it seems like a good idea.



Plenty to enjoy in 2018.

G