Novonix shares slide on US govt financing setback
Make us a preferred source
Make us a preferred source on Google
The news: Novonix shares lowered in morning trade after the battery materials producer was not selected by the US Department of Energy (DOE) to receive tax credits for its Enterprise South facility in Tennessee.
The numbers: Novonix shares were down 3.9% to 68.8 cents at 11:10am AEDT.
The context: Last month, Novonix announced that it had received a conditional commitment from the DOE for a direct loan of up to USD754.8 million ($1.2 billion) to partially finance the proposed new facility.
The company said that the DOE loan would be comprised of two primary tranches, with an additional tranche available to fund eligible project costs. This additional tranche would be repaid upon receipt of the monetisation of any tax credits received for Enterprise South under the Qualifying Advanced Energy Project Credit Program, or '48C Program'.
However, Novonix has now advised it has not been selected to receive tax credits under the 48C Program. The company said it is working with the DOE's Loan Programs Office to understand what impact this could have on the proposed loan.
Enterprise South, located in Chattanooga, Tennessee, is expected to produce approximately 31,500 tonnes of synthetic graphite per year, aimed at supporting the production of lithium-ion batteries for around 325,000 electric vehicles annually.
The source: ASX announcement
