AI Sector Developments - The AI sector is experiencing significant growth, highlighted by a $38 billion cloud computing deal between OpenAI and Amazon Web Services, which provides OpenAI access to extensive Nvidia GPUs and CPU capacity for AI infrastructure development [2][3] - Major tech companies, including Microsoft, Alphabet, and Meta, are projected to collectively spend over $380 billion on AI-related capital expenditures in 2025, indicating a strong commitment to AI infrastructure [3] Gold Market Changes - China has announced a change in its precious metals taxation framework, ending a VAT exemption on gold sales, reducing it from 13% to 6% for specific purchases, effective November 1, 2025 [4][5] - This policy change is expected to increase gold purchasing costs for consumers, potentially dampening retail demand, as spot gold prices fell below $4,000 an ounce following the announcement [5] Monetary Policy in Australia - The Reserve Bank of Australia has maintained its official cash rate at 4.35% amid economic complexities and persistent inflation, a decision anticipated by financial markets [6][7] - Recent economic indicators, including a trimmed mean inflation miss, influenced the RBA's decision to keep rates steady, with forecasts indicating inflation may remain elevated [7] Automotive Industry Updates - Stellantis has terminated its binding offtake agreement with Novonix for synthetic graphite material due to disagreements on product specifications, leading to a significant drop in Novonix shares [10][11] - The agreement was initially for a minimum of 86,250 tonnes and aimed at supporting Stellantis's North American cell manufacturing partners from 2026 to 2031 [10] Streaming Services Dispute - A contract dispute between YouTube TV and Disney has resulted in a blackout of Disney-owned channels for 9-10 million subscribers since late October 2025, stemming from disagreements over carriage fees [12][13] - Despite the ongoing blackout, Disney requested a temporary restoration of ABC for Election Day, which YouTube TV declined, emphasizing the complexities in content distribution and rising costs in the streaming industry [13]

Group 1: Penguin Solutions, Inc. - Penguin Solutions reported fourth-quarter earnings of 43 cents per share, exceeding the analyst consensus estimate of 38 cents per share [1] - The company reported quarterly sales of $337.922 million, which fell short of the analyst consensus estimate of $342.112 million [1] - For FY2026, Penguin Solutions projects adjusted earnings between $1.75 to $2.25 per share and sales ranging from $1.314 billion to $1.588 billion [2] - Following the earnings report, shares of Penguin Solutions dipped 17.6% to $22.24 in pre-market trading [2] Group 2: Other Companies - Esperion Therapeutics, Inc. saw a decline of 20.1% to $2.47 after announcing a public offering of common stock [4] - NOVONIX Limited experienced a drop of 12.7% to $1.79 after a previous increase of 14% [4] - NANO Nuclear Energy Inc. fell 9.1% to $51.50 following a $400 million oversubscribed private placement of common stock [4] - Joby Aviation, Inc. decreased by 8.5% to $17.30 after pricing a $513.9 million underwritten offering of common shares [4] - Archer Aviation Inc. declined 4.1% to $11.95 after a previous drop of more than 8% [4] - NextNRG Inc. fell 3.2% to $2.73 after a significant increase of 36% the previous day [4] - NuCana plc decreased by 3% to $6.81 in pre-market trading [4]

Core Viewpoint - NOVONIX Limited has achieved a significant milestone by delivering its first mass production, commercial-grade sample of synthetic graphite for industrial applications, marking a step towards expanding its product portfolio and production capabilities [1][2]. Company Developments - The CEO of NOVONIX, Mike O'Kronley, highlighted the successful production of industrial-grade products using the company's proprietary continuous graphitization furnace technology, which allows for mass production [2]. - The company is scaling its facility to diversify its product offerings beyond battery-grade materials, with plans to increase production at its Riverside facility in 2026 [2]. - NOVONIX's Riverside facility is set to be the first large-scale production site in North America dedicated to high-performance synthetic graphite for various sectors, including battery and defense, with mass production expected to start next year for its lead customer, Panasonic [3]. Production Capacity - NOVONIX plans to establish a second synthetic graphite manufacturing plant in Chattanooga, Tennessee, known as the Enterprise South location, which will contribute to a total production capacity exceeding 50,000 tonnes per year [3]. Industry Position - NOVONIX is positioned as a leading battery technology company, focusing on innovative and sustainable technologies, high-performance materials, and efficient production methods, thereby playing a significant role in the electric vehicle and energy storage systems battery industry [5].

[Corporate Directory](index=2&type=section&id=Corporate%20Directory) This section provides essential corporate identification details, including stock exchange listings, principal business location, and the company's auditor - NOVONIX Limited is listed on the Australian Securities Exchange ("ASX") and American Depositary Receipts ("ADR's") are listed on the Nasdaq Stock Market[3](index=3&type=chunk) - The principal place of business is **1029 West 19th Street, Chattanooga, Tennessee 37408, USA**[3](index=3&type=chunk) - PricewaterhouseCoopers serves as the auditor for the company[3](index=3&type=chunk) [Key Highlights & Company Overview](index=3&type=section&id=Key%20Highlights) This section summarizes NOVONIX's strategic achievements and financial performance for the first half of 2025, alongside an overview of its core business as a battery technology leader [Key Highlights for H1 2025](index=3&type=section&id=Key%20Highlights_H1_2025) In the first half of 2025, NOVONIX made significant progress in scaling operations, securing customers, advancing R&D, and strengthening its financial position - Received **US$7.5 million** in reimbursements on the MESC grant during Q2 2025, totaling **US$27.1 million** cumulatively through June 30, 2025[6](index=6&type=chunk) - Progressed installation and commissioning of equipment at Riverside for the initial **3,000 tpa capacity**, supporting existing supply agreements with Panasonic, Stellantis, and PowerCo[6](index=6&type=chunk) - Received approval for the purchase of a **182-acre parcel of land** for a planned second mass production plant ('Enterprise South') in Chattanooga, Tennessee[6](index=6&type=chunk) - Michael O'Kronley appointed Chief Executive Officer (effective May 19, 2025) and Ronald Edmonds appointed Independent Chair of the Board (effective July 1, 2025)[6](index=6&type=chunk) - Received preliminary rulings from the U.S. Department of Commerce placing up to **721% countervailing tariffs** and **93.5% antidumping tariffs** on imported Chinese graphite[6](index=6&type=chunk) - Completed installation of substantially all required mass production equipment for lead customer, Panasonic[6](index=6&type=chunk) - Supplied advanced samples of synthetic graphite material to **13 different customers** and potential customers[6](index=6&type=chunk) - Continued to advance commercialization of patented all-dry, zero-waste cathode technology, sending first- and second-round samples to Tier-1 battery manufacturers[6](index=6&type=chunk) - Patent granted for 'Method for making low surface area alloy particulate with high silicon content for silicon alloy anode material'[6](index=6&type=chunk) [Half-Year Results Summary](index=4&type=section&id=Half-Year%20Results) For the six months ended June 30, 2025, NOVONIX reported a reduced net loss compared to the prior year, with relatively stable revenue from Battery Technology Solutions Half-Year Results Summary | Metric | H1 2025 (US$) | H1 2024 (US$) | Change (US$) | Change (%) | | :----------------------- | :------------ | :------------ | :----------- | :--------- | | Loss | (20,135,547) | (28,710,957) | 8,575,410 | 30% | | Cash and cash equivalents | 24,820,758 | 42,557,621 (Dec 31, 2024) | (17,736,863) | -41.7% | | Net assets | 143,827,572 | 137,590,257 (Dec 31, 2024) | 6,237,315 | 4.5% | | Revenue (Battery Technology Solutions) | 2,817,488 | 2,740,479 | 77,009 | 2.8% | - Net assets increased by **$6.2 million**, primarily due to continued investment in machinery and equipment at the Riverside facility[7](index=7&type=chunk) [NOVONIX Overview](index=4&type=section&id=NOVONIX%20Overview) NOVONIX Limited is a leading battery technology company focused on developing and scaling advanced materials and equipment for the lithium-ion battery supply chain - NOVONIX is a leading battery technology company developing and scaling advanced materials and equipment critical to the lithium-ion battery supply chain[8](index=8&type=chunk) - The company is commercializing U.S.-made synthetic graphite, a designated U.S. Critical Mineral, to support energy independence through domestic production[8](index=8&type=chunk) - The Riverside facility in Chattanooga, Tennessee, is set to become North America's first large-scale synthetic graphite manufacturing plant, with planned **20,000 tpa capacity** fully allocated under long-term offtake agreements with Panasonic Energy, Stellantis, and PowerCo[9](index=9&type=chunk) - NOVONIX is advancing its Battery Technology Solutions business, including progress toward commercializing its patented all-dry, zero-waste cathode synthesis process, enhancing its vertically integrated platform[11](index=11&type=chunk) [Operational Review](index=5&type=section&id=Operational%20Structure%20at%20a%20Glance) This section details the operational performance and strategic developments across NOVONIX's key business segments: Anode Materials, Battery Technology Solutions, and Cathode Materials [NOVONIX Anode Materials](index=5&type=section&id=NOVONIX%20Anode%20Materials) The Anode Materials segment is focused on establishing North America's first large-scale synthetic graphite production, driven by U.S. policy incentives and increasing demand for domestic supply - NOVONIX qualifies for the **45X production tax credit** as a **100% domestic manufacturer** with no ties to Prohibited Foreign Entities (PFE), incentivizing domestic production of synthetic graphite[16](index=16&type=chunk) - The Riverside facility is poised to become the first large-scale synthetic graphite production site in North America, with its **20,000 tpa capacity** fully allocated through long-term offtake agreements with Panasonic Energy, Stellantis, and PowerCo[17](index=17&type=chunk) - The Company signed a definitive agreement to purchase a **182-acre site** in the Enterprise South Industrial Park for a second large-scale synthetic graphite facility, expected to reach an initial production capacity of **31,500 tpa** and create **450-500 full-time jobs**[23](index=23&type=chunk)[25](index=25&type=chunk) - NOVONIX expects to receive approximately **US$54 million** in net tax and other benefits from Chattanooga and Hamilton County over **15 years**, contingent on meeting specific conditions[26](index=26&type=chunk) - Entered into an exclusive license agreement with Harper International Corporation for its continuous, induction-based graphitization furnace technology, expanding on a prior development agreement[27](index=27&type=chunk)[29](index=29&type=chunk) - The U.S. Department of Commerce announced preliminary affirmative determinations to impose up to **721% countervailing duty (CVD) tariffs** and **93.5% antidumping (AD) tariffs** on synthetic and natural graphite anode material from China, resulting in an effective tariff rate of **160%**[31](index=31&type=chunk)[32](index=32&type=chunk) [NOVONIX Battery Technology Solutions](index=9&type=section&id=NOVONIX%20Battery%20Technology%20Solutions) NOVONIX Battery Technology Solutions (BTS) serves as the company's R&D hub, driving proprietary technologies like the all-dry, zero-waste cathode synthesis process - BTS is the Company's hub for research, development, and testing across anode and cathode materials, cell prototyping, and precision battery testing hardware, maintaining an exclusive research partnership with Dr. Mark Obrovac[34](index=34&type=chunk)[35](index=35&type=chunk) - NOVONIX's proprietary Ultra-High Precision Coulometry (UHPC) systems are widely used by **80% of top Chinese cell manufacturers** and over **50% of global automotive OEMs** for measuring battery degradation and performance[37](index=37&type=chunk) - A patent (US 12,257,632 B2) was granted to BTS for its low surface area silicon alloy materials for use as anode active materials in lithium-ion battery applications, developed through partnership with Dr. Mark Obrovac[39](index=39&type=chunk) [Cathode Materials](index=11&type=section&id=Cathode%20Materials) NOVONIX Cathode Materials continued to advance its patented all-dry, zero-waste cathode synthesis technology, sending samples to Tier-1 manufacturers - NOVONIX Cathode Materials continued advancing its patented all-dry, zero-waste cathode synthesis technology, sending first- and second-round samples to several Tier-1 battery manufacturers[42](index=42&type=chunk) - Completed the first year of joint development with CBMM to enhance nickel-based cathode materials using NOVONIX's dry-process technology, with the goal of improving performance and reducing costs[43](index=43&type=chunk) - Signed a Joint Collaboration Agreement with ICoNiChem in October 2024 to develop nickel-based cathode materials using recycled metals, supported by **CAD $515,686** in funding from National Research Council of Canada and Innovate UK[44](index=44&type=chunk) [Director's Report](index=12&type=section&id=Director's%20Report) This report details the company's directors, principal activities, and a review of operations, including financial performance and any significant changes during the half-year [Directors and Principal Activities](index=12&type=section&id=Directors) The Director's Report lists the current board members and outlines the company's principal activities for the half-year, which included investments in anode material production scalability - The directors of NOVONIX Limited during the half-year included Ron Edmonds, Tony Bellas, Sharan Burrows, AC, Nick Liveris, Admiral Robert Natter, US Navy (Ret.), Jean Oelwang, and Suresh Vaidyanathan[51](index=51&type=chunk) - Principal activities included investing in scalability efforts for anode materials, entering customer offtake agreements, progressing cathode technology commercialization, and expanding cell assembly and testing capabilities[48](index=48&type=chunk) [Review of Operations and Significant Changes](index=12&type=section&id=Review%20Of%20Operations) The consolidated entity reported a net loss of **$20.1 million** for the half-year ended June 30, 2025, an improvement from the **$28.7 million** loss in the same period of 2024 Loss After Income Tax | Metric | H1 2025 (US$) | H1 2024 (US$) | Change (US$) | Change (%) | | :---------------- | :------------ | :------------ | :----------- | :--------- | | Loss after income tax | (20,135,547) | (28,710,957) | 8,575,410 | 30% | - There were no significant changes in the state of affairs of the consolidated entity during the financial half-year[50](index=50&type=chunk) [Subsequent Events](index=13&type=section&id=Subsequent%20Events%20Occurring%20after%20the%20Balance%20Sheet%20Date) This section details significant events that occurred after the balance sheet date, primarily focusing on a major funding agreement [Funding Agreement for Convertible Debentures](index=13&type=section&id=Funding%20Agreement%20for%20up%20to%20US%24100%20Million%20of%20Convertible%20Debentures) Subsequent to the balance sheet date, NOVONIX entered into a multi-tranche funding agreement with Yorkville Advisors Global, LP for up to **US$100 million** in unsecured convertible debentures - On July 24, 2025, the Company agreed to issue up to **US$100,000,000** of unsecured convertible debentures to YA II PN, Ltd, an affiliate of Yorkville Advisors Global, LP[53](index=53&type=chunk)[161](index=161&type=chunk) - The funding agreement includes an upfront issue and drawdown of **24,500,000 Convertible Debentures** for **US$23,275,000**[56](index=56&type=chunk)[163](index=163&type=chunk) - Subject to shareholder approval, additional tranches of **35,500,000** and **40,000,000 Convertible Debentures** can be issued, allowing for further drawdowns up to **US$33,725,000** and **US$38,000,000** respectively, potentially bringing total funding to **US$95,000,000**[56](index=56&type=chunk)[58](index=58&type=chunk)[163](index=163&type=chunk)[167](index=167&type=chunk) [Auditor's Information](index=14&type=section&id=Auditor's%20Review%20Report) This section presents the independent auditor's review report and independence declaration, highlighting key findings and compliance with professional standards [Auditor's Review Report Summary](index=14&type=section&id=Auditor's%20Review%20Report_Summary) The independent auditor's review report highlights a material uncertainty regarding the Group's ability to continue as a going concern, as detailed in Note 1 to the financial statements - The auditor's review report highlights a material uncertainty that may cast significant doubt about the Group's ability to continue as a going concern, as described in Note 1 to the financial statements[60](index=60&type=chunk)[179](index=179&type=chunk) [Auditor's Independence Declaration](index=15&type=section&id=Auditor's%20Independence%20Declaration) PricewaterhouseCoopers, as the lead auditor, declared that there were no contraventions of auditor independence requirements or applicable codes of professional conduct - The lead auditor declared no contraventions of the auditor independence requirements of the Corporations Act 2001 or any applicable code of professional conduct in relation to the review[62](index=62&type=chunk)[64](index=64&type=chunk) [Financial Statements](index=17&type=section&id=Contents) This section presents the consolidated financial statements, including the statement of profit or loss, balance sheet, changes in equity, and cash flows for the reporting period [Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=18&type=section&id=Consolidated%20Statement%20of%20profit%20or%20loss%20and%20other%20comprehensive%20income) For the half-year ended June 30, 2025, NOVONIX reported a net loss of **US$20.1 million**, a **30% improvement** from the prior year Consolidated Statement of Profit or Loss and Other Comprehensive Income | Metric | H1 2025 (US$) | H1 2024 (US$) | Change (US$) | Change (%) | | :-------------------------------------- | :------------ | :------------ | :----------- | :--------- | | Revenue | 2,817,488 | 2,740,479 | 77,009 | 2.8% | | Loss before income tax expense | (20,135,547) | (28,710,957) | 8,575,410 | 29.9% | | Loss for the year | (20,135,547) | (28,710,957) | 8,575,410 | 29.9% | | Total comprehensive loss for the year | (19,687,616) | (30,531,708) | 10,844,092 | 35.5% | | Basic earnings per share | (0.03) | (0.06) | 0.03 | 50.0% | | Diluted earnings per share | (0.03) | (0.06) | 0.03 | 50.0% | | Gain on fair value of derivative financial instruments | 4,207,340 | 421,365 | 3,785,975 | 898.5% | [Consolidated Balance Sheet](index=19&type=section&id=Consolidated%20Balance%20sheet) As of June 30, 2025, the Group's total assets increased to **US$239.0 million**, primarily driven by investments in property, plant, and equipment, while cash and cash equivalents decreased significantly Consolidated Balance Sheet Highlights | Metric | Jun 30, 2025 (US$) | Dec 31, 2024 (US$) | Change (US$) | Change (%) | | :-------------------------- | :------------ | :------------ | :----------- | :--------- | | Cash and cash equivalents | 24,820,758 | 42,557,621 | (17,736,863) | -41.7% | | Trade and other receivables | 18,892,032 | 8,158,174 | 10,733,858 | 131.6% | | Property, plant and equipment | 166,999,303 | 149,310,343 | 17,688,960 | 11.8% | | Total assets | 239,037,857 | 226,095,541 | 12,942,316 | 5.7% | | Total liabilities | 95,210,285 | 88,505,284 | 6,705,001 | 7.6% | | Net assets | 143,827,572 | 137,590,257 | 6,237,315 | 4.5% | | Total equity | 143,827,572 | 137,590,257 | 6,237,315 | 4.5% | - The Group reported net current liabilities of **$3,838,792** as of June 30, 2025, compared to net current assets of **$11,055,453** as of December 31, 2024[84](index=84&type=chunk) [Consolidated Statement of Changes in Equity](index=21&type=section&id=Consolidated%20Statement%20of%20changes%20in%20equity) The Consolidated Statement of Changes in Equity shows an increase in total equity to **US$143.8 million** as of June 30, 2025, primarily driven by contributions of equity Consolidated Statement of Changes in Equity Highlights | Metric | Jan 1, 2025 (US$) | Jun 30, 2025 (US$) | Change (US$) | | :----------------------- | :---------------- | :---------------- | :----------- | | Contributed equity | 367,537,075 | 392,542,712 | 25,005,637 | | Accumulated losses | (259,669,980) | (279,805,527) | (20,135,547) | | Reserves | 29,723,162 | 31,090,387 | 1,367,225 | | Total equity | 137,590,257 | 143,827,572 | 6,237,315 | | Contributions of equity, net of transaction costs | - | 25,005,637 | 25,005,637 | | Share-based payments | - | 919,294 | 919,294 | [Consolidated Statement of Cash Flows](index=22&type=section&id=Consolidated%20Statement%20of%20cash%20flows) For the half-year ended June 30, 2025, NOVONIX experienced significant cash outflows from operating and investing activities, partially offset by inflows from financing activities Consolidated Statement of Cash Flows Highlights | Cash Flow Activity | H1 2025 (US$) | H1 2024 (US$) | Change (US$) | | :-------------------------------- | :------------ | :------------ | :----------- | | Net cash outflow from operating activities | (22,258,440) | (22,162,213) | (96,227) | | Net cash outflow from investing activities | (20,824,259) | (9,367,965) | (11,456,294) | | Net cash inflow from financing activities | 23,717,747 | (917,364) | 24,635,111 | | Net increase/(decrease) in cash and cash equivalents | (19,364,952) | (32,447,542) | 13,082,590 | | Cash and cash equivalents at end of year | 24,820,758 | 47,132,913 | (22,312,155) | - Payments for property, plant and equipment significantly increased to **US$34.0 million** in H1 2025 from **US$9.5 million** in H1 2024, reflecting continued investment in the Riverside facility[77](index=77&type=chunk) - Proceeds from issue of shares amounted to **US$25.1 million** in H1 2025, a substantial increase from no proceeds in H1 2024, contributing to the net cash inflow from financing activities[77](index=77&type=chunk) [Notes to the Consolidated Financial Statements](index=23&type=section&id=Notes%20to%20the%20consolidated%20financial%20statements) This section provides detailed explanations and disclosures supporting the consolidated financial statements, covering accounting policies, segment information, and specific asset and liability movements [Note 1 Basis of preparation](index=23&type=section&id=Note%201%20Basis%20of%20preparation) This note outlines the basis of preparing the condensed consolidated interim financial report, adhering to Australian Accounting Standard 134 and IFRS, and addresses going concern considerations - The Company incurred a net loss of **$20,135,547** and net operating cash outflows of **$22,258,440** for the half-year ended June 30, 2025[84](index=84&type=chunk) - As of June 30, 2025, the Company has a cash balance of **$24,820,758** and net current liabilities of **$3,838,792**, indicating a material uncertainty about its ability to continue as a going concern[84](index=84&type=chunk) - Mitigating factors for going concern include the ability to raise funds from customers, governments, and investors (e.g., **US$100 million convertible debentures** from Yorkville, **US$20.1 million equity raise**, **US$5.0 million investment** from Phillips 66), successful growth of businesses, and the ability to meet cash flow forecasts[87](index=87&type=chunk) - The Company has received **US$27.1 million** in reimbursements from the US Department of Energy (DOE) MESC grant through June 30, 2025, with a remaining balance of **US$57.7 million** to be claimed[89](index=89&type=chunk) - NOVONIX was selected to receive a **US$103 million 48C tax credit** under the Qualifying Advanced Energy Project Allocation Program, with no funds claimed yet as the qualifying asset has not been placed in service[90](index=90&type=chunk) [Note 2 Segment reporting](index=27&type=section&id=Note%202%20Segment%20reporting) NOVONIX operates through three segments: Battery Materials, Battery Technology, and Graphite Exploration, with Battery Materials incurring the largest net loss before tax - The Group's three operating segments are Battery Materials (developing and manufacturing battery anode materials), Battery Technology (developing battery cell testing equipment, consulting, R&D in battery development), and Graphite Exploration (exploration and evaluation of the Mt Dromedary natural graphite deposit)[100](index=100&type=chunk) Segment Net Loss Before Tax | Segment | H1 2025 (US$) | H1 2024 (US$) | | :------------------ | :------------ | :------------ | | Battery Materials | (16,175,153) | (16,766,906) | | Battery Technology | (2,674,520) | (4,216,400) | | Graphite Exploration | - | - | | Aggregated segment net loss before tax | (18,849,673) | (20,983,306) | Segment Assets | Segment | Jun 30, 2025 (US$) | Dec 31, 2024 (US$) | | :------------------ | :------------ | :------------ | | Battery Materials | 198,496,628 | 169,314,731 | | Battery Technology | 16,345,508 | 15,235,436 | | Graphite Exploration | 2,177,491 | 2,049,907 | | Unallocated | 22,018,230 | 39,495,467 | | Total | 239,037,857 | 226,095,541 | Segment Liabilities | Segment | Jun 30, 2025 (US$) | Dec 31, 2024 (US$) | | :------------------ | :------------ | :------------ | | Battery Materials | 25,774,442 | 44,383,959 | | Battery Technology | 9,008,525 | 8,085,044 | | Graphite Exploration | - | - | | Unallocated | 60,427,318 | 36,036,281 | | Total | 95,210,285 | 88,505,284 | [Note 3 Current assets – Other assets](index=30&type=section&id=Note%203%20Current%20assets%20%E2%80%93%20Other%20assets) This note details the escrow reserves, which are funds deposited with the Lender as additional collateral for the loan related to the Riverside facility Escrow Reserves | Metric | Jun 30, 2025 (US$) | Dec 31, 2024 (US$) | | :-------------- | :------------ | :------------ | | Escrow reserves | 2,124,898 | 1,452,187 | - Escrow reserves are funds deposited with the Lender for capital expenditure, insurance, and tax as additional collateral for the loan obtained for the Riverside facility[113](index=113&type=chunk) [Note 4 Non-current assets – Property, plant and equipment](index=31&type=section&id=Note%204%20Non-current%20assets%20%E2%80%93%20Property%2C%20plant%20and%20equipment) The Group's property, plant, and equipment increased significantly to **US$167.0 million**, primarily due to substantial investments in construction work in progress at the Riverside facility Property, Plant and Equipment Carrying Amounts | Asset Category | Jun 30, 2025 (US$) | Dec 31, 2024 (US$) | | :-------------------------- | :------------ | :------------ | | Machinery and equipment | 17,698,526 | 18,833,358 | | Leasehold improvements | 185,404 | 227,954 | | Buildings | 41,786,443 | 42,014,149 | | Land | 2,307,485 | 2,272,297 | | Construction work in progress | 105,021,445 | 85,962,585 | | Total | 166,999,303 | 149,310,343 | Movement in Property, Plant and Equipment (H1 2025) | Category | Additions (US$) | Depreciation Charge (US$) | Exchange Differences (US$) | | :-------------------------- | :-------------- | :------------------------ | :----------------------- | | Land | - | - | 35,188 | | Buildings | - | (575,504) | 280,287 | | Leasehold improvements | - | (42,550) | - | | Machinery and equipment | - | (1,356,292) | 212,732 | | Construction work in progress | 19,124,465 | - | 10,634 | | Total | 19,124,465 | (1,974,346) | 538,841 | - Total capital commitments as of June 30, 2025, are **$16,645,756**, a decrease from **$52,968,336** at December 31, 2024[118](index=118&type=chunk) [Note 5 Non-current assets – Intangible assets](index=33&type=section&id=Note%205%20Non-current%20assets%20%E2%80%93%20Intangible%20assets) Goodwill, allocated to the NOVONIX Anode Materials (NAM) CGU, remained at **US$11.975 million**, with no impairment identified after an annual test reflecting updated tariff rulings Goodwill Carrying Amount | Cash Generating Unit | Jun 30, 2025 (US$) | Dec 31, 2024 (US$) | | :------------------- | :------------ | :------------ | | NOVONIX Anode Materials | 11,975,024 | 11,975,024 | | Total carrying amount of goodwill | 11,975,024 | 11,975,024 | - The recoverable amount of the NAM CGU was determined using a 'Fair Value Less Costs to Sell' (FVLCS) approach, based on the current Riverside Project Plan, assuming commercial offtake will commence in 2026[122](index=122&type=chunk) - Key assumptions for FVLCS calculation include a post-tax discount rate of **11.5%**, updated revenue sales prices of **USD $10–$12/kg** (from **USD $7–$10/kg** in 2024) due to U.S. DOC preliminary rulings on Chinese graphite tariffs, sales volume growth consistent with contractual agreements (up to **157,000 tonnes** from 2026 to 2034), operating costs of **USD $6–$8/kg**, and a terminal growth rate of **2.5%**[127](index=127&type=chunk)[128](index=128&type=chunk) [Note 6 Borrowings](index=35&type=section&id=Note%206%20Borrowings) Total borrowings for NOVONIX increased slightly to **US$65.1 million** as of June 30, 2025, comprising both secured bank loans and unsecured convertible notes Total Borrowings | Category | Jun 30, 2025 (US$) | Dec 31, 2024 (US$) | | :------------------- | :------------ | :------------ | | Secured borrowings | 32,441,679 | 32,683,822 | | Unsecured borrowings | 32,609,332 | 31,760,259 | | Total borrowings | 65,051,011 | 64,444,081 | - Current borrowings amounted to **US$32,608,786**, while non-current borrowings were **US$32,442,225** as of June 30, 2025[131](index=131&type=chunk) [Note 7 Unsecured convertible loan notes and derivative financial instruments](index=36&type=section&id=Note%207%20Unsecured%20convertible%20loan%20notes%20and%20derivative%20financial%20instruments) This note details the **US$30 million** convertible loan notes issued to LGES in June 2023, with a **4% coupon** and June 2028 maturity, and the associated derivative financial liability - The Group issued **45,221,586 convertible loan notes** with a face value of **AUD$1.00** per note, a **4% coupon rate**, and a maturity date of June 7, 2028, for proceeds of **US$30 million** to LGES[133](index=133&type=chunk) - The notes have a conversion price of **AUD$1.60** per ordinary share and will mandatorily convert into ordinary shares upon acceptance of the first purchase order under the purchase agreement with LGES[133](index=133&type=chunk) Unsecured Convertible Loan Notes | Metric | Jun 30, 2025 (US$) | | :------------------- | :------------ | | Balance at Dec 31, 2024 | 30,360,575 | | Interest expense* | 893,258 | | Balance at Jun 30, 2025 | 31,253,833 | *Interest expense calculated at an effective interest rate of 6.56%. Derivative Financial Instruments | Metric | Jun 30, 2025 (US$) | | :-------------------------- | :------------ | | Balance at Dec 31, 2024 | 5,368,624 | | Fair value gain | (4,230,253) | | Effect of foreign currency movements | 291,169 | | Balance at Jun 30, 2025 | 1,429,540 | - The derivative financial liability is classified as a **Level 3 fair value** in the fair value hierarchy, as one or more significant inputs are not based on observable market data[139](index=139&type=chunk) [Note 8 Contract liabilities](index=38&type=section&id=Note%208%20Contract%20liabilities) Contract liabilities increased significantly to **US$3.47 million**, primarily due to a **US$3.0 million** grant from the State of Tennessee, conditional on job creation Contract Liabilities | Metric | Jun 30, 2025 (US$) | Dec 31, 2024 (US$) | | :------------------------ | :------------ | :------------ | | Current - Contract liabilities | 3,466,997 | 126,056 | | Non-current – Contract liabilities | - | 3,000,000 | | Total | 3,466,997 | 3,126,056 | - The Group received **US$3,000,000** in grant funds from the Department of Economic and Community Development in the State of Tennessee, USA, conditional upon creating, filling, and maintaining **290 jobs** by March 2026[141](index=141&type=chunk)[142](index=142&type=chunk) - The full amount of the grant has been deferred and classed as a contract liability, as income has not been recognized due to inability to reliably measure compliance with conditions[143](index=143&type=chunk) [Note 9 Contributed equity](index=39&type=section&id=Note%209%20Contributed%20equity) Contributed equity increased by **US$25.0 million** during the half-year, primarily driven by a share purchase plan and a placement to Phillips 66 Company Share Capital | Metric | Jun 30, 2025 (Shares) | Dec 31, 2024 (Shares) | Jun 30, 2025 (US$) | Dec 31, 2024 (US$) | | :---------- | :-------------------- | :-------------------- | :----------------- | :----------------- | | Ordinary shares | 636,199,259 | 567,941,993 | 392,542,712 | 367,537,075 | Ordinary Share Capital Movements (H1 2025) | Details | Number of Shares | US$ | | :-------------------------- | :--------------- | :---------- | | Balance at Jan 1, 2025 | 567,941,993 | 367,537,075 | | Exercise of options | 43,825 | 19,109 | | Exercise of performance rights | 922,047 | - | | Exercise of director share rights | 632,890 | - | | Share purchase plan shares | 53,887,112 | 20,086,938 | | Placement shares - Philips 66 | 12,771,392 | 5,000,000 | | Share issue costs | - | (100,410) | | Balance at Jun 30, 2025 | 636,199,259 | 392,542,712 | - The Group's capital management objectives are to safeguard its ability to continue as a going concern, provide returns for shareholders, and maintain an optimal capital structure, utilizing capital market issues to satisfy funding requirements[153](index=153&type=chunk)[154](index=154&type=chunk)[155](index=155&type=chunk) [Note 10 Earnings per share](index=41&type=section&id=Note%2010%20Earnings%20per%20share) Basic and diluted earnings per share for the half-year ended June 30, 2025, were **(US$0.03)**, an improvement from **(US$0.06)** in the prior year Earnings Per Share | Metric | H1 2025 (US$) | H1 2024 (US$) | | :-------------------------------------------------------------------------------- | :------------ | :------------ | | Loss after income tax attributable to the owners of NOVONIX Limited | (20,135,547) | (28,710,957) | | Weighted average number of shares used in calculating basic and diluted net loss per share | 628,041,079 | 488,886,096 | | Basic earnings per share | (0.03) | (0.06) | | Diluted earnings per share | (0.03) | (0.06) | [Note 11 Related party transactions](index=42&type=section&id=Note%2011%20Related%20party%20transactions) During the half-year ended June 30, 2025, the Group did not enter into any material transactions with related parties - During the half-year ended June 30, 2025, the Group has not entered into any material transactions with related parties[160](index=160&type=chunk) [Note 12 Events occurring after the balance sheet date](index=42&type=section&id=Note%2012%20Events%20occurring%20after%20the%20balance%20sheet%20date) This note reiterates the details of the funding agreement entered into with Yorkville Advisors Global, LP on July 24, 2025, for up to **US$100 million** in unsecured convertible debentures - On July 24, 2025, the Company agreed to issue up to **US$100,000,000** of unsecured convertible debentures to YA II PN, Ltd, an affiliate of Yorkville Advisors Global, LP, under a multi-tranche funding agreement[161](index=161&type=chunk)[162](index=162&type=chunk) - The funding includes an upfront drawdown of **US$23,275,000** and potential additional tranches of up to **US$33,725,000** and **US$38,000,000**, subject to shareholder approval, bringing total potential funding to **US$95,000,000**[163](index=163&type=chunk)[167](index=167&type=chunk) [Directors' Declaration](index=44&type=section&id=Directors'%20Declaration) The directors declared compliance with financial reporting standards and affirmed the Group's ability to meet its debts as they fall due - The directors declared that the attached financial statements comply with the Corporations Act 2001, AASB 134, and Corporations Regulations 2001, giving a true and fair view of the Group's financial position and performance[169](index=169&type=chunk) - They also believe there are reasonable grounds to conclude that the Group will be able to pay its debts as and when they become due and payable[169](index=169&type=chunk) [Preparation of Interim Financial Statements for Users in Multiple Jurisdictions](index=45&type=section&id=Preparation%20of%20Interim%20Financial%20Statements%20for%20Users%20in%20Multiple%20Jurisdictions) The interim financial statements are prepared to conform to the requirements for users in both Australia (Corporations Act 2001 and AASB 134) and the U.S. (IAS 34) - The interim financial statements are prepared to conform to the requirements for users in both Australia (Corporations Act 2001 and AASB 134) and the U.S. (IAS 34)[170](index=170&type=chunk)[171](index=171&type=chunk)[172](index=172&type=chunk) - For U.S. users, the information is labeled 'unaudited,' while for Australian users, a review by independent auditors has been performed to meet Australian standards[171](index=171&type=chunk)[172](index=172&type=chunk) [Independent Auditor's Review Report](index=46&type=section&id=Independent%20auditor's%20review%20report) PricewaterhouseCoopers concluded that the half-year financial report complies with the Corporations Act 2001, while drawing attention to a material uncertainty regarding going concern - PricewaterhouseCoopers concluded that, based on their review, they have not become aware of any matter that makes them believe the half-year financial report does not comply with the Corporations Act 2001[174](index=174&type=chunk)[175](index=175&type=chunk) - The auditor's report draws attention to Note 1, which describes a material uncertainty relating to the Group's ability to continue as a going concern, but states that their conclusion is not modified in respect of this matter[179](index=179&type=chunk) [Appendix 4D](index=48&type=section&id=Appendix%204D) This appendix provides key financial results for public announcement, including loss, earnings per share, net tangible assets, and dividend information [Results for Announcement to the Market](index=48&type=section&id=Results%20for%20Announcement%20to%20the%20Market) The Appendix 4D reports key financial results for public announcement, showing a **30% reduction** in loss before tax and net loss for the period Results for Announcement to the Market | Metric | Jun 30, 2025 (US$) | Jun 30, 2024 (US$) | Change (US$) | Change (%) | | :------------------------------------ | :------------ | :------------ | :----------- | :--------- | | Revenue and other income from ordinary activities | 2,817,488 | 2,740,479 | 77,009 | 3% | | Loss before tax | (20,135,547) | (28,710,957) | 8,575,410 | 30% | | Loss from ordinary activities after tax | (20,135,547) | (28,710,957) | 8,575,410 | 30% | | Net loss for the period attributable to members | (20,135,547) | (28,710,957) | 8,575,410 | 30% | | Basic earnings per share | (0.03) | (0.06) | 0.03 | 50% | | Diluted earnings per share | (0.03) | (0.06) | 0.03 | 50% | [Net Tangible Assets](index=48&type=section&id=Net%20Tangible%20Assets) Net tangible asset backing per ordinary share decreased from **US$0.30** in June 2024 to **US$0.21** in June 2025 Net Tangible Assets | Metric | Jun 30, 2025 | Jun 30, 2024 | | :-------------------------------- | :----------- | :----------- | | Net tangible asset backing per ordinary share | 0.21 | 0.30 | [Dividends](index=48&type=section&id=Dividends) No dividends were paid, recommended, or determined during the current or previous reporting period - There were no dividends paid, recommended, or determined during, or for, the current or previous reporting period[188](index=188&type=chunk) [Controlled Entities and Interim Review](index=49&type=section&id=Controlled%20Entities) The report confirms no changes in controlled entities or joint ventures and reiterates the independent auditor's review opinion regarding going concern - No control has been gained or lost over entities during the period, and there are no associates or joint ventures[191](index=191&type=chunk)[192](index=192&type=chunk) - The independent audit review opinion includes a statement drawing attention to Note 1, which describes a material uncertainty that may cast significant doubt on the Group's ability to continue as a going concern, but the conclusion is not modified[193](index=193&type=chunk)

Core Viewpoint - NOVONIX Limited has entered into a definitive Funding Agreement to secure up to US$95,000,000 for the expansion of its Riverside facility in Chattanooga, Tennessee, through the issuance of unsecured convertible debentures [1][9]. Funding Agreement Details - The Funding Agreement allows NOVONIX to issue up to US$100,000,000 in convertible debentures to Yorkville Advisors Global, LP [1][9]. - The first tranche consists of US$24,500,000, which will raise US$23,275,000 and does not require shareholder approval [9]. - The second tranche is US$35,500,000, which may raise up to an additional US$33,725,000, subject to shareholder approval at an Extraordinary General Meeting scheduled for September 9, 2025 [9]. - An additional tranche of up to US$40,000,000 is also available, contingent on mutual agreement and shareholder approval [9]. Production and Capacity Expansion - NOVONIX plans to begin shipping commercial-grade synthetic graphite from its Riverside facility later this year, with mass production set to start next year for its lead customer, Panasonic [2]. - The Riverside facility is expected to become the first large-scale production site for high-performance synthetic graphite in North America, with an initial capacity scaling up to 20,000 tonnes per annum (tpa) [5]. - Combined with the new Enterprise South location, NOVONIX will achieve a total production capacity of over 50,000 tpa in Chattanooga [5]. Company Overview - NOVONIX is recognized as a leading battery technology company focused on revolutionizing the lithium-ion battery industry through innovative and sustainable technologies [7]. - The company is expanding its high-performance synthetic graphite material manufacturing operations and has developed a patented all-dry, zero-waste cathode synthesis process [7].

Core Viewpoint - The U.S. Department of Commerce has preliminarily determined to impose antidumping tariffs of 93.5% on anode active material (AAM), which includes synthetic and natural graphite imports from China, resulting in an effective tariff rate of 160% when combined with existing tariffs [1][2]. Group 1: Company Strategy and Operations - NOVONIX emphasizes the strategic importance of developing a domestic supply chain for critical minerals, particularly synthetic graphite, in North America, aligning with its business strategy and customer diversification efforts [2]. - The company operates the most advanced synthetic graphite production facility in North America and plans to significantly increase U.S. production of this essential mineral, thereby enhancing American manufacturing and creating high-quality jobs [2]. - NOVONIX's Riverside facility in Chattanooga is set to be the first large-scale production site for high-performance synthetic graphite in North America, with a total production capacity exceeding 50,000 tonnes per annum (tpa) when combined with its second facility at Enterprise South [3]. Group 2: Market Context and Regulatory Environment - The antidumping investigation assesses whether graphite is being sold at less than fair value, while the countervailing duty investigation evaluates if the Chinese government is subsidizing graphite AAM production for the U.S. market [2]. - The final determinations for both the antidumping and countervailing duty investigations are expected to be released around December 5, 2025 [2].

Core Viewpoint - The U.S. Department of Commerce has preliminarily determined to impose antidumping tariffs of 93.5% on anode active material (AAM), which includes synthetic and natural graphite imports from China, resulting in an effective tariff rate of 160% when combined with existing tariffs [1][2]. Company Summary - NOVONIX Limited is positioned to enhance domestic supply chains for critical minerals, particularly synthetic graphite, in North America, aligning with its business strategy and customer diversification efforts [2]. - The company operates the most advanced synthetic graphite production facility in North America and plans to significantly increase U.S. production of this strategic mineral, thereby creating high-quality jobs [2]. - NOVONIX's Riverside facility in Chattanooga is set to be the first large-scale production site for high-performance synthetic graphite in North America, with a total production capacity exceeding 50,000 tonnes per annum (tpa) across its facilities [3]. Industry Summary - The antidumping investigation assesses whether graphite is sold at less than fair value, while the countervailing duty investigation evaluates if the Chinese government subsidizes graphite AAM production for the U.S. market [2]. - The final determinations for both the antidumping and countervailing duty investigations are expected to be released around December 5, 2025 [2].

Core Viewpoint - The U.S. Department of Commerce has made a preliminary affirmative determination to impose countervailing duty tariffs of up to 721% on synthetic and natural graphite anode material imported from China, which is seen as a significant step towards supporting domestic production of critical minerals for energy independence [1][2]. Group 1: Company Developments - NOVONIX Limited is part of the American Active Anode Material Producers, which filed the trade case against Chinese graphite imports, highlighting its role in advocating for U.S. graphite industry interests [3]. - The company is expanding its production capabilities with plans for a new high-performance synthetic graphite manufacturing plant in Chattanooga, Tennessee, which will complement its existing Riverside facility, aiming for a total production capacity exceeding 50,000 tonnes per annum [4]. Group 2: Industry Context - The preliminary ruling by the Department of Commerce follows a determination by the International Trade Commission that China has been suppressing the establishment of the graphite industry in the U.S. by exporting graphite at artificially low prices, impacting the lithium-ion battery supply chain [1][2]. - The ongoing antidumping duty investigation by Commerce may lead to additional tariffs, compounding the impact of the countervailing duties [2].

Core Viewpoint - NOVONIX Limited has executed a definitive agreement to purchase a 182-acre parcel in Chattanooga, Tennessee, marking a significant step in its expansion strategy in the battery materials sector [1][3]. Acquisition Details - The land will be acquired for approximately US$5 million and will serve as the site for NOVONIX's second facility for high-performance synthetic graphite, expected to reach an initial production capacity of 31,500 tonnes per annum (tpa) [2]. - With the new facility and the existing Riverside facility scaling up to 20,000 tpa, NOVONIX will have a total production capacity of over 50,000 tpa in Chattanooga [2]. Job Creation and Community Impact - The new facility is anticipated to create 450 to 500 full-time jobs, contributing to the local economy [2]. - NOVONIX has expanded its partnership with Lookout Valley Middle High School through the NOVONIX Institute of Advanced Battery Technology, providing students with career-focused learning opportunities in the battery industry and STEM fields [3]. Financial Incentives - The company is expected to receive approximately US$54 million in total net tax and other benefits from the City of Chattanooga and Hamilton County over a 15-year period, contingent upon meeting specific conditions [4]. - The acquisition is contingent upon satisfying conditions related to a conditionally committed US$754 million loan from the U.S. Department of Energy [4]. Company Overview - NOVONIX is a leading battery technology company focused on revolutionizing the lithium-ion battery industry with innovative technologies and high-performance materials [6]. - The company manufactures battery cell testing equipment and is growing its synthetic graphite material manufacturing operations, positioning itself prominently in the electric vehicle and energy storage systems battery industry [6].

Core Viewpoint - NOVONIX Limited has appointed Michael O'Kronley as the new Chief Executive Officer, effective May 19, 2025, to lead the company in its next phase of growth in the battery materials and technology sector [1][3]. Group 1: Leadership Transition - Michael O'Kronley brings over 30 years of automotive experience, including 15 years in the lithium-ion battery and battery materials space, and previously served as CEO of Ascend Elements, where he increased the company's enterprise value by US$1.6 billion in five years [2]. - Admiral Robert J Natter, Chairman of NOVONIX, expressed confidence in O'Kronley's ability to lead the company and emphasized his extensive experience in manufacturing and scaling critical minerals production [3]. - O'Kronley succeeds Robert Long, who served as Interim CEO since January 2025 and will continue as Chief Financial Officer [3][4]. Group 2: Company Overview - NOVONIX is a leading battery technology company focused on revolutionizing the lithium-ion battery industry through innovative and sustainable technologies, high-performance materials, and efficient production methods [5]. - The company manufactures industry-leading battery cell testing equipment and is expanding its high-performance synthetic graphite material manufacturing operations, along with a patented all-dry, zero-waste cathode synthesis process [5]. - NOVONIX has established a prominent position in the electric vehicle and energy storage systems battery industry, contributing to a cleaner energy future through advanced R&D capabilities and strategic partnerships [5].