Haven't been posting lately, been super busy.
Just want to throw some DD I have been doing lately on the grants.
Some of you might have been slightly disappointed that Novonix's grant was scaled down from USD $150m to $100m and redirected to from the Greenfields site to Riverside (Big Blue) facility.
I am actually pretty excited how this is playing out.
Reasons below.
As the company has improved the throughput of the Gen 3 furances, Riverside is expected to deliver 20,000TPA, up front original 8,000TPA capacity was expected from this facility. This is a significant increase which can service a number of customers in the short term on land and factory we currently hold. Redirecting the BIL funds to scale this is the right move by our BoDs without the need to raise sufficient capital up front and likely without the required for the US DOE ATVM Loan Program.
There were some posters here saying Novonix needed to raise almost a billion dollars just to see a single cent of the grant, well that was a hot load of crap, we now have secured USD $100m with no borrowing or CR.
That leaves the question about how we will scale the Greenfields site, as of August 23, US DoE announced that the second round of funding has opened up (another USD $300,000,000).
Applicants are able to apply for multiple grants.
I would expect that Novonix will submit their 2nd application for the BIL grant for the Greenfields build, using the revised data from Riverside scale up to update the CAPEX costs. This will also be supported by the application currently submitted to the US DOE ATVM LOAN Program. Novonix should be well placed at this stage with Riverside at full capacity generating income and becoming a fully compliant IRA supplier of SG anode for US customers.
US DOE is in no rush to get these grants out the door, this is a 5-10 year scale up. All Novonix needs to do is submit the applications, then they can work out the finer details once they are selected, which they already have been successful with on the first round of funding.
If we work off the Round 1 grant timelines, BIL was passes in late 2021 from memory. Applications were to be submitted by May 22, it took about 5 months for the DoE to then screen and select 22 companies for the first round funding, announced in Oct 22. It took about another 12 months for Novonix and the DoE to negotiate the deal (USD $100,000,000 for Riverside)
Round 2 funding announced late Aug 23, so we have a few years possibly for this to play out. It wouldn't be a lot of work for Novonix to resubmit for the Greenfields facility paperwork, the application will just need some tweaking with new CAPEX and additional customers requirements.
Don't rule out possible grants for the Cathode Division, lets see how that pans out, Anode first!!!
Anyways, do ya own DD, people that reference meme stocks, company needs to CR a billion dollars and newsagency fundermentals need not reply.





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