Beware the rampant up ramping here. It's a sign the stock could...

Beware the rampant up ramping here. It's a sign the stock could become the play thing of the day traders and pump and dumpsters, if it isn't already.

While the technology is interesting and compelling, it is worth nothing that CATL has announced a million mile battery that is ready to go right now. They don't need Novonix's graphite to already make a very compelling product. And you can bet they are getting very high quality graphite from already mature and scaled Chinese graphite suppliers at the lowest possible prices. So any product that Novonix is selling has to compete with that and the margins are going to be wafer thin if they have any margin at all until they reach considerable scale.

Without being propped up by government subsidies in the US its a tough regime and leaves your business exposed should those subsidies disappear. Battery makers may be interested in supply diversity to hedge against China problems and global governments will be keen to prop up their own battery industries and supply chains. But I'm not sure you could build a business case around it.

Tesla has also announced a million mile battery and some "mind blowing" advancements. But it is pure conjecture that Novonix has anything to do with it. People are relying on circumstantial evidence.

Maxwell batteries in the US developed a dry electrode process that mitigates expensive drying rooms in the battery process, they also sell ultra capacitors. Tesla acquired the company and it is presumed they will incorporate the technology into their battery making process. As for the "mind blowing" technology that Elon talked about, some people have drawn a link to the ultra capacitor technology and that Tesla is somehow going to use this in their BEV's. Elon hinted that this is correct.(Note: Elon was about to start a PHD in ultra capacitor technology before he dropped out and started coding)

It is also worth noting that taking a technology from the lab and implementing it at scale takes years of work and investment. Maxwell developed its dry cell technology years ago so by the time it appears in a battery it might be seven years later. So don't expect these breakthroughs that Novonix is developing at Dalhousie to show up in a battery process anytime soon.

I think this is a company worth investing in but people should be cautious.