NOVONIX Ltd — Interim / Quarterly Report 2018

Jul 30, 2018

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Quarterly Activity & Update Report

Accelerating adoption of battery technologies for a cleaner energy future

31 July 2018

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General disclaimer

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• This document has been prepared by NOVONIX Limited (“the Company” or “NOVONIX”). No representation, expressed or implied, or warranty as to the accuracy or completeness of the information contained herein is made by any party and nothing contained herein shall be relied upon as a promise or representation as to the future. In all cases, recipients should conduct their own investigation and analysis of NOVONIX.

• This presentation, including the information contained in this disclaimer is not a prospectus, disclosure document, product disclosure statement or other offering document under Australian law or under any other law. It is for information purposes only and does not constitute an offer, invitation or recommendation to subscribe for or purchase any security and neither the presentation, disclaimer nor anything contained in them forms the basis of any contract or commitment. This presentation does not take into account your individual investment objectives, financial situation or particular needs. You must not act on the basis of any matter contained in this presentation, but must make your own assessment of the Company.

• All statements in this presentation, other than statements of historical facts, which address the future activities and events or developments that the Company expects to occur, are forward looking statements. Although the Company believes the expectations expressed in such statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in forward-looking statements.

• Forward-looking statements involve and are subject to known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company and/or its subsidiaries to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information. Such factors include, among others, general business, economic, competitive, political and social uncertainties; the actual results of current activities; assumptions in economic valuations which prove to be inaccurate; possible variations product performance and reliability; climate events; political and regulatory changes; delays in obtaining approvals or financing or in the completion of development or construction activities.

• To the maximum extent permitted by law, none of NOVONIX or its related corporations, directors, employees or agents, nor any other person, accepts any liability, including, without limitation, any liability arising from fault or negligence, for any loss arising from the use of this presentation or its contents or otherwise arising in connection with it. Recipients should make their own enquiries in relation to any investment decisions.

• Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. Forward-looking information contained herein is current as at the date of this presentation and the Company disclaims any obligation to update any forward-looking information, whether as a result of new information, future events or results otherwise. There can be no assurance that forward-looking information or statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information or statements. Accordingly, readers should not place undue reliance on forward-looking statements.

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Contents

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CORPORATE INFORMATION

• Company overview

• Highlights – last quarter to date

• PUREgraphite progress & next steps

• BTS progress and next steps

• Recent announcements

• Growing tier 1 customer base

• Board and management

• Assets and market

• Summary investment highlights

• Appendix

STOCK INFORMATION
ASX Code		NVX
ASX Share Price @27 July 2018		A$0.68
52 Week Low - High		A$0.57 – A$1.93
Shares on issue		123m
Market Capitalisation		A$83m
CASH POSITION
Cash available to PUREgraphite JV at 30 June		A$3.57m
Cash available (excluding PUREgraphite JV) at 30 June		A$0.37m
Total cash available for operations at 30 June		A$3.94m
Cash inflow forecast Q1FY19 (excl PUREgraphite)		+A$6.99m
		A$10.93m
Cash outflow forecast Q1FY19 (excl PUREgraphite) pre CAPEX		-A$0.98m
Cash outflow forecast Q1FY19 for PUREgraphite pre CAPEX		-A$0.59m
		-A$1.57m
SHAREHOLDINGS	(m)	%
Board and KMP – ordinary shares	49.55	40%

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Cash position

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Appendix 5B (30 June 2018) - Cash on hand PUREgraphite (not reported in Appendix 5B as 50/50 JV, equity accounted) at 30 June 2018 Total cash available for operations at 30 June 2018 Net cash inflow for Q1FY19 (excluding PUREgraphite)

$365k $3.57m $3.94m +$6.99m $10.93m

Net cash outflow for Q1FY19 (excluding PUREgraphite) is forecast $370k CAPEX and $984k OPEX $1.35m Net cash outflow for Q1FY19 for PUREgraphite is forecast $1.114m CAPEX and $594k OPEX $1.71m $3.06m

Commentary

Appendix 5B (30 June) – YTD (12 months) reported Staff Costs of $3m which is abnormally high by >50% as it includes one-off/nonrecurring payments of $1m in aggregate in sign-on bonuses for the founders of NVX BTS and $0.6m payment to the group Managing Director (MD) in lieu of performance shares (noting the MD reinvested the $0.6m payment in NVX via the exercise of NVX options).

The Appendix 5B reports “Estimated cash outflows for next quarter” however it is not formatted to allow NVX to report “Estimated cash inflows for the next quarter” as the ASX reporting format is intended for an exploration company with no income . The Appendix 5B (30 June) reported an estimated cash outflow for the next quarter of $1.354m of which $1.1m relates to BTS comprising $370k for capital equipment. Given NVX is an operating business with existing sales revenue and financing capability, we note our forecast cash inflows for the Q1FY19 quarter is $1.496m comprising $843k in sales revenue from BTS and $650k from government funding for BTS. NVX will also receive $5.5m from convertible loan notes to provide additional working capital to transition the PUREgraphite business into production bringing in the total cash inflow forecast for the Q1FY19 quarter to $6.99m.

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Company overview

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• Battery technology company

• Makes battery anode material that extends battery life >30%

• Makes battery tech that cuts R&D time to weeks from years

• Owner of a World-Class Natural Graphite Deposit (18%TGC)

• Leading brand used by battery & OEM multinationals

• Based in USA, Canada and sales in fourteen countries

• Infrastructure in place, scaling business and sales

• Board experienced in building billion dollar businesses

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Highlights – last quarter to date

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PUREgraphite (anode material production)

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• production equipment trials completed

• feedstock trials completed

• customer trails well advanced

• production equipment ordered

• on track for production and sales in Q1CY19

Battery Technology Solutions (BTS)

• 35% growth in sales including 10 “Fortune 500” customers

• battery cell pilot line and electrolyte program operational

Photo: Professor Mark Obrovac of Dalhousie University and Dr Chris Burns COO NOVONIX inspecting the electrode coating line at the NOVONIX battery cell pilot line facility

• battery materials partnership with Dalhousie University

• Mt Dromedary Battery Materials Upstream Project

• scaling Mt Dromedary Graphite Project study to 200ktpa

• surface copper samples assayed (up to 16.85% Cu) – further fieldwork imminent

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PUREgraphite anode material: timeline – milestones achieved

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H2 2017 – Product development, H1 2018 – Equipment trials and H1 2017 – JV formation process development, pilot plant selection, plant engineering engineering, and pilot plant delivery

	•	NVX forms 50:50 PUREgraphite joint	• Tested conventional graphitization	• Graphitization furnace trials
		venture with Coulometrics in March	furnace production materials from	conducted with equipment vendors
Activity	•	2017 Commenced operations in April 2017 in PUREgraphite Tennessee, USA facility	continuous large particle furnaces, continuous crucible-type, and conventional batch type furnaces • Optimized next generation graphitization furnace designs specifically engineered for graphite anode production • Completed the testing of a wide selection of precursor materials optimized for performance in cylindrical LIBs and cost	• Pilot system order and delivered in Q4 2017 • 250-500 tpy production scale equipment selection completed • Particle shaping and grinding technologies developed and vendor trials completed • Particle coating and carbonization equipment selection completed
			• Down-selection of promising feedstock
			materials

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PUREgraphite timeline – transition to commercial production

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----- Start of picture text -----

H2 2018 H1 2019 H2 2019 2020-2022
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	•	Initial production of graphite for LIBs	• First sales to beachhead	• Internal production,	• Continued ramp of	• Continued ramp of
		for beachhead customers already	customers	plant procurement, and	production to customer
		identified and working closely with PUREgraphite (all U.S.A. based)	• Ramp internal production to 1,000 tpa,	installation • Continued continuous	demand – target of 25,000tpa by end 2022
	•	Procurement and installation of first	plant procurement and	graphitization furnace	⁻	Subject to a range of
		production equipment in current	installation	development		factors including
	•	facility in Tennessee (250-500tpa) Continued product development	• Continued development with beachhead	• Ramp internal production to >1,000 tpa		customer demand and competition
Activity		with emphasis on new requirements	customers to emphasize	including additional	⁻	Funding above self-
		from automakers related to:	improved performance	equipment procurement		funded organic
		₋ Extreme Fast Charging (XFC) ₋ Longer life ₋ Improved stability and safety	of PUREgraphite materials and associated performance enhancement of LIBs	and installation • Continued product development with core customer base		growth expected to include debt
		₋ Environmentally friendly
		processes that are non green-
		house gas emitting

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BTS - accomplishments since acquisition in June 2017

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• 35% YOY growth in sales including ten “Fortune 500” companies placing orders

Strong growth

• Launched our second larger HPC product (20A) with strong early sales

• Moved to a facility 5X larger and expanded the team 3X to support growth

• Tooled-up for electrolyte and battery development including a battery cell pilot line

• $500k CAD Gov loan (interest free) to support marketing/growth (Aug 2017)

Government backing

• $480k CAD Gov grant for labor for electrolyte R&D (Approved July 18)

• $500k CAD Gov loan (interest free) for R&D equipment (pending Sept 18)

Capabilities and IP for future growth

• Appointed battery expert Ken Broom, Ex-COO of 5th largest Chinese battery maker

• Patent application for DTA technology, improving prototype and building IP base

• Low cost charger model in final trials will provide access to wider market

• JV opportunity with European battery testing co for North America & Europe

M&A opportunities

• R&D opportunity with Dalhousie University on silicon and new battery tech

• • EV/HPC R&D opportunity with strategic partners

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BTS looking forward – expanding sales, service and R&D

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H2 2018

2019-2022

Activity

• Continue 30%+ YOY organic growth of equipment sales

• Ramp up sales of newly introduced product – 20A HPC

• ⁻ US$50m addressable market, 3-year revenue goal: $3m

• Establish EV battery testing service business in USA possibly, with strategic European partner

• ⁻ US$500m addressable market, 3-year revenue goal: $5m

• Expand electrolyte, silicon and new materials R&D and 2yr sponsorship with Dalhousie University

• Organically grow equipment sales and grow services in North America with strategic partner

• Develop and commercialize new testing and battery material IP and other technologies (e.g. electrolyte and silicon additives)

• Consider strategic M&A opportunities with alignment and synergies

• BTS targeting 30%+ YOY growth and possible step growth with M&A

• ⁻ $10b addressable market

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BTS battery cell pilot line now operational

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Photo: Professor Jeff Dahn of Dalhousie University with Dr Chris Burns NOVONIX COO inspecting the electrode slitting operation at the NOVONIX battery cell manufacturing facility

• 100% NOVONIX-owned battery cell pilot line now operational in our Halifax battery manufacturing facility

• Our proprietary battery cell line will support in-house development activities and the provision of commercial battery development services to OEMs and other third-parties

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Partnership with Dalhousie University

Partnership

Dalhousie

• NOVONIX will have first rights to IP developed from the research

• Dalhousie University is a world leader in battery innovation and has researchers working with such groups as TESLA and 3M Corporation • Professor Mark Obrovac is a leading battery materials innovator having authored over 75 peer reviewed journal articles, fifteen issued patents with a further seven patents pending in the field of battery science covering anodes, cathode, electrolyte and binder materials.

• The aim is to facilitate development of valuable battery IP that can be commercialized

• NOVONIX will sponsor the Mark Obrovac Battery Research Group

• The sponsorship agreement is for an initial two years with opportunity to renew in five year increments

• The Research Group comprises approximately 12 postdocs, PhD and MSc graduate at any one time

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Focus

• The research will be focused on developing advanced Liion and next-generation battery materials

• • It will leverage Professor Obrovac’s significant experience in silicon materials, anode and cathode materials, liquid and solid electrolytes and binder materials.

• • Short term synergies with PUREgraphite re silicon additives for graphite anode materials

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Covering the whole lithium anode market

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Application Other factors Solutions Life Energy	• Best for long life applications • xEV and Grid Artificialgraphite	• Best for low cost applications • Portable electronics • Commercial application limited 3% - 10% Naturalgraphite Graphite w/siliconadditive • Very limited application Silicon alloy
		More energy
	Better cycle life
	• High energy use and associated cost	• High chemical use or higher energy cost • Low cycle life • High expansion • Low efficiency • Very low cycle life • Extreme expansion • Very low efficiency
	• Surface coatings • Particle morphology • Blending • Additives • Technology	• Surface coatings • Particle morphology • Blending • Additives • Technology • Surface coatings • Particle morphology • Limit % silicon • Limit voltage • Technology • Work in progress

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CDN$487,693 Government of Canada support awarded

Highlights

Project

• The National Research Council of Canada Industrial Research Assistance Program supports NOVONIX’s R&D efforts with advisory services and a contribution of up to $487,693 CDN alongside investment by NOVONIX

• This project, entitled ‘Development of Advanced Novel Materials for Improved Lithium Ion Battery Performance’, will support work by NOVONIX in development and testing of electrolyte and silicon based anode materials for use in lithium ion batteries.

• The projects will be run out of NOVONIX pilot manufacturing and research facility in Bedford (near Halifax) in Nova Scotia

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• The funding will help NOVONIX expand its team of scientists, engineers and technicians working on developing new battery materials

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Focus

• The primary research focus will be materials development and cell designs for improved battery performance with a focus in electrolytes and silicon/graphite anode materials

• The primary goals of the project are to work on commercially scalable materials that can improve the energy density, lifetime and power capabilities of Lithium ion batteries relative to today’s industrial standards and benchmarks

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High-grade copper find at Mount Dromedary Project

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Malachite sample from Mount Dromedary Mining Lease Area grading 16.85% Cu* (sample prep. courtesy of Geological Survey of Queensland)

Mining Lease Application Southern Boundary

Above : Historical Cu soil sampling Results within southern portion of Mount Dromedary Mining Lease Area

*** Source** : Australian Laboratory Services Pty Ltd (ALS), 26 July 2018

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Adding more global tier 1 customers every quarter

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Multiple global consumer electronics Multiple global auto makers - confidential companies - confidential

For confidentiality reasons there are a number of major global automakers, battery makers, medical device and electronics companies that are customers but cannot be named.

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Highly experienced Board of Directors

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----- Start of picture text -----

Chairman Managing Director Executive Director
Tony Bellas Philip St Baker Greg Baynton
Non-Executive Director Non-Executive Director Non-Executive Director
Admiral Robert J. Natter Andrew N. Liveris AO Robert Cooper
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Highly experienced Executive Team

Managing Director Executive Director Philip St Baker Greg Baynton

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CTO NOVONIX BTS VP Business Development Dr David Stevens Nick Liveris

CTO NOVONIX BTS

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CEO PUREgraphite Joint Venture Dr Edward Buiel

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Mt Dromedary GM Steve Hadwen

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CEO NOVONIX BTS Dr Chris Burns

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CFO NOVONIX Group Suzanne Yeates

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3 Strate ic business units assets g /

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Business/ asset Ownership stake Business description 100% 100% • Makes battery tech that cuts R&D time to weeks from years • Provides battery development services to OEMs • R&D programs for electrolyte, silicon & new materials • Based in Canada with growing sales in 14 countries • Established in 2013 • Large, world-class high-grade (18% TGC) natural graphite deposit located in Australia • Pending mining approval for 50KTPA base case • Opportunity to scale project up to 200ktpa • Considering partner/divestment opportunities Battery Technology Solutions 50% (with right to increase to 75% of first 1,000TPA and 100% above 1,000TPA) • Makes battery anode material that extends battery life >30% • 50/50 joint venture with Coulometrics • Currently building Phase 1 production capacity • Based in USA; Established in 2017

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Innovative products for fast growing battery market

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			NOVONIX business	LIB segment		Revenue: Market size	2017 $1.4b	2030 2040 $10b 1.3mt $20b 3.1mt $10b 1.4mt $20b 3.4mt $50b $100b $1b $2b $71b $142b
				Anode Materials
						Tons:	130kt
						Revenue: Tons:	$1.8b 140kt
				Electrolyte Materials
						Revenue:	$8.7b
				Other Lithium-ion Battery Materials
						Revenue:	$0.2b
				Battery Testing Equipment and Services
			2017 Data Source for Anode, Electrolyte and Other Battery Materials is AVICEENE ENERGY 2018 2030 and 2040 Data Source: NVX estimate derived from independent (Bloomberg) forecast of growth in lithium-ion battery market and other internal NVX analysis			Revenue:	$12b

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Summary investment highlights

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Established brand in the rechargeable lithium-ion battery industry

• NOVONIX is an established brand name known for making the most accurate battery cell test equipment in the world

Global footprint of blue-chip customers and sales in 14 countries

• Our battery cell test equipment now used by leading battery, auto and equipment makers and researchers including PANASONIC, CATL, BOSCH, 3M

Innovative new products and process being commercialised in large growing market

• Developing and commercialising new innovations in battery anode materials and battery cell test equipment and undertaking R&D in electrolytes

Large world-class high grade (18%TGC) natural graphite resource in Australia

• Considering strategic partners to progress the Mt Dromedary Battery Materials Project

Backed by a board experienced in building and running billion dollar businesses

• Extensive experience in BD, resources, energy, advanced materials, battery industry, project financing, project delivery, operations and scaling

Highly-incentivised Board and Management

• The Board and Management hold ~40% of the equity in the company

Opportunity to position at an early stage in a global market with exponential growth

• Exponential demand for rechargeable lithium-ion batteries being driven by EV and energy storage demand growth

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Contact information

Corporate contact information

USA & AUSTRALIA

Contact: Philip St Baker Email: phil@novonixgroup.com Telephone: +1 970-376-4918 Telephone: +61 4-3817-3330

New York City, New York, USA

Contact: Nick Liveris Email: nick@novonixgroup.com 33 Irving Pl, New York, NY 10003 Telephone: +1 989-859-3213

Battery Technology Solutions (BTS) facility

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Dartmouth, Nova Scotia, CANADA

Contact: Dr Chris Burns Email: chris@novonixgroup.com 177 Bluewater Road, Bedford, NS B4B 1H1, Canada

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PUREgraphite battery materials development facility

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Chattanooga, Tennessee, USA

1084 Duncan Avenue, Chattanooga, TN, 37404, USA

Brisbane, Queensland, AUSTRALIA

Contact: Greg Baynton Email: greg@novonixgroup.com Level 12 – 114 Edward Street Brisbane, Qld, Australia Telephone: +61 4-1497-0566

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Appendix

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Summary – battery anode market opportunity

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• PUREgraphite has developed materials that compete on performance and cost against best-inclass materials

• Beachhead customers in place , building commercial production plant, sales f/cast to commence Q1CY19

• ~USD$1.4B market f/cast to go to $10b in 10yrs

• There are very few suppliers who can make high quality long life EV grade anode materials

• Almost 100% of supply is from China or based on China graphite feedstock

• US tariff on graphite from China imposed 10 July 2018 – all forms of natural and artificial graphite

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Customers, Production, Revenue Potential

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• Currently we are working withUS based beachhead customersto optimize design • NDA’s in place with several interested large global battery makerswith early discussions and information exchange moving to product trials after we start commercial production Customers		Ramp up plan					sts
			2017	2019 1ktpa	2023 25ktpa+	2030
						75-100 ktpa
		Production plan
				$10m - $20m	$250m - $500m	$750m - $2,000m
		Revenue potential
			130kt	150kt	300kt	1,300kt Internal NVX Foreca
		Market forecast

Internal NVX Forecasts

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The PUREgraphite strategic advantage

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• Secure supply , made in the USA

Proprietary blends of artificial & natural

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Integrated processing and purification technologies Proprietary particle coating technologies

• Better performance and cost over imports ⁻ Battery life improvement over 30%

• Based on

⁻ Proprietary blends of artificial and natural graphite ⁻ Integrated processing and purification technologies ⁻ Proprietary particle coating technologies ⁻ Low cost and low emission energy sources ⁻ Secure and sustainable supply chain ⁻ No chemical purification using HCL/HF

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The PUREgraphite product advantage

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• PUREgraphite’s highperformance anode material: ⁻ Estimated to deliver 30%+ longer life than the best-in-class commercial EV cells ⁻ Consistently demonstrates very high coulombic efficiency performance against industry benchmarks The higher the coulombic efficiency the longer the battery cell life

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NOVONIX – Battery value chain opportunity

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	• NOVONIX Battery Technology Services is strategically aligned with and supports the entire battery value chain • Growing this business allows us to ⁻ Pin our success to the growth of the entire value chainand not just one piece ⁻ Be a data driven company… We are able to collect and leverage data across the entire battery ecosystem		Major players L&F Cell Module/Pack Material Anode Cathode Separator Electrolyte Major players Battery testing equipment sales Battery R&D, testing and certification services

Battery testing services is a major growth industry following the proliferation of batteries in nearly every device being made today and the need for performance, safety and quality

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Products, Customers, Sales

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	• Equipment ⁻ 2A HPC Chargers ⁻ 20A HPC Chargers ⁻ Thermal Chambers • Services ⁻ HPC Testing Services ⁻ Materials Testing Services ⁻ DTA Testing Services ⁻ ISV Testing Services ⁻ Cell Making Services ⁻ Design Services Products	• Sales in 14 countries • Battery makers (most) ⁻ Panasonic, CATL, Murata, Samsung, BAK Battery • Auto makers (most) ⁻ Honda • Phone/tablet makers (most) ⁻ Huawei • Cordless equip makers (many) ⁻ Dyson, Bosch Customers			Sales history and aspirations	Sales history and aspirations	Sales history and aspirations		2017 $2.15m
						2014 $0.35m	2015 $1.40m	2016 $1.55m
					Sales history
						$3m 2018	$5m 2020	$10m 2023	$50m 2030 Internal NVX Forecasts
					Forward looking sales targets

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BTS opportunity to expand into new products and markets

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----- Start of picture text -----

NOVONIX market Testing equipment and Size Lab and R&D cyclers – competitor and product landscape
positioning overview services markets ($M)
• •
NOVONIX BTS Lab and R&D cyclers 250
Company <5A 20A 50A 200A >1000A
currently is a tier-1 (including HPC)
provider of 2A HPC •
Production scale cyclers 1,000
Arbin
cyclers ($50M
•
Battery analyzers
market)
•
• Sales of 20A HPC Nail penetration & safety Biologic
•
cycler commenced Thermal cyclers
2018 ($50M market) • Calibration tools Maccor
•
Further opportunity • Chambers
to leverage brand
• Test equipment for Neware
and enter into NVX OPPORTUNITY
transport of dangerous
⁻ 50A, 200A,
goods (UN 38.3)
NOVONIX NVX OPPORTUNITY
>1000A market
•
Test equipment for
($150M) and
international compliance
⁻ Production scale
(IEC 62133) 2018 Market ($M): 50 50 50 50 50
cycler market
•
Test equipment for US
($1BN market)
end device standards (UL
2030 Market ($M): 200 200 200 200 200
2054)
Internal NVX Forecasts
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The BTS competitive advantage

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• Manufacturer of the most accurate battery cell test equipment in the world

Accelerated R&D cycle

• Allows researchers to predict battery life in weeks rather than years

Breadth of R&D capabilities

• Expertise from battery chemistry to battery cell mass production

• • Electrolyte development program

Tier 1 customer relationships

• Products used by leading battery makers, researchers and OEMs

Strategic partnerships

• Supported by Canadian government and promoted as a “success story”

• • Active R&D collaboration with Dalhousie University

• Active R&D collaboration with strategic partners

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Measuring battery performance with high precision coulometry (HPC)

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NOVONIX has developed industry leading high precision cyclers measuring LIB coulombic efficiency

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•
High Precision Coulometry allows
you to measure the coulombic
efficiency (CE) of a battery (i.e.
loss of electrons per cycle due to
oxidation/reduction of the
electrolyte)
1
1.000
0.996
0.992
2 2
0 5 10 15 20
Cycle Number
CE
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Coulombic Efficiency is the fastest and most reliable read on battery life

Cycles flat Rapid capacity loss CE determines the point of failure. The higher the CE, the longer the life until rapid capacity loss Cycle Number

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Project Update - Key Highlights

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Background: Existing world-class, extensive, high-grade (18%+) graphite deposit in an established mining province near Cloncurry in North West Queensland - Mining Lease Application underway

Latest results: New copper assay results received today from ALS - surface sampling within the existing Mining Lease Area has confirmed high-grade copper occurrences of up to 16.85% Cu Strategic value: High-grade Copper ore, if extensive within the Mount Dromedary project, may be of strategic interest in the battery materials and EV market supply strategy Next steps: 1 . Consider strategic partners for Mt Dromedary Battery Materials Project. 2 . Continue investigations for scaling up to 200Ktpa graphite concentrate. 3 . Further Cu sampling and field-work to be conducted in the coming weeks to attempt to determine extent of the high-grade Cu ore

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Mount Dromedary Battery Materials Project

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	Unique large scale resource	Access to market and infrastructure	Concentration and purification expertise	License to operate
•	World-class, high-grade	• Adjacent (<1km) to	• Extensive metallurgical	• Well-established mining
	(18%+) graphite deposit	sealed highway	testing done to	province
•	Large - 1.9Mt contained	connecting to multiple	determine suitability for	• Excellent local and state
	graphite from 20 – 30% of export ports		producing a export	government
	known and expected	• Bulk and containerized	grade concentrate	relationships and
	mineralization areas -	export options	• NOVONIX has	support
	potential for up to	• Attractive back-haul	undertaken both	• Local community
	200Ktpa	and container transport	thermal and chemical	support and
•	Very low strip-ratio	capacity (road and	purification trials	encouragement
	(outcropping over 3km)	ocean)	upgrading the
•	Potential for high-grade		concentrate to lithium- ion battery grade

• Potential for high-grade Copper (up to 16.85% Cu) within the existing Mining Lease Application area

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Mount Dromedary Battery Materials Project Opportunity

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1 KM UNDRILLED

• One of the highest grade flake graphite deposits in the world

• Only 20 – 30% of the known/expected graphite mineralization drilled

• Indicates resource potential of >4.0 Mt of total contained graphite

• High-grade Cu (up to 16.85%) occurrences within the current ML area

3KM MAPPED OUTCROP – MOSTLY UNDRILLED

DRILLED - JORC RESOURCE 1.9MT OF CONTAINED GRAPHITE - SUPPORTS 50ktpa X 20 YEARS

• Partnering/divestment opportunities to be explored for the asset

Indicative economics of scale

Bubble size reflects resource required/consumed

ML 100121

Accuracy +/- 35% Based on a US$1,200/t average basket price and inhouse study of 50ktpa project extrapolated and benchmarked with current larger scale projects..

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Appendix: Market background

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EV penetration to drive battery demand

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• 1.5% to 24% EV enetration forecasts p

• • 2017 EV Penetration (% of New Car Sales) – ~1.5%

• • Average 2030 EV Penetration Forecast in 2030 – 24%

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Bloomberg forecast to 2040

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Why? - It’s all about the batteries – 80% price drop in 7 years

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Batteries and EV - example

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TESLA Model S – 85KWh

The entire battery pack weighs approximately 500Kg….

(6s74p CONFIGURATION) …including Note: Indicative and illustrative 70kg of graphite anode material and 7kg of information with approximations applied lithium in the cathode material

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EV announcements

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In January 2018 Reuters reported global automakers to invest US$90b in batteries & electric cars in the coming years - US$9b in the United States, US$21b in China and US$52b in Germany Major EV announcements from global auto makers

• 11 July 18 - Tesla reaches agreement with Shanghai government to build a Chinese Gigafactory

• 9 July 18 – BMW signs €4B battery contract with CATL including €1.5B from German plant

• 5 June 18 – Fiat Chrysler announces 30 new EV models and US$9b EV investment by 2022

• 18 May 18 – VW announces it will need > 150GWh of battery capacity annually by 2025

• 26 March 18 – Nissan announces a target of 1 million EV sales by 2022

• 15 January 18 – Ford plans US$11 billion investment, 40 electrified vehicles by 2022

• 17 November 2017 – Daimler to invest €10B in expansion of electric fleet over next few years

• 2 October 17 – GM announces two more EV models and 20 more globally within six years

• 15 September 17 - VW announces plans to invest €50B in battery cells to support EV plans

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• 5 July 17 - Volvo announced from 2019 all new Volvo cars will have electric or hybrid engines

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Major EV related announcements from Governments

• 9 July 2018 - UK sets out more details on plan to ban petrol and diesel vehicle sales by 2040

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• 9 September 17 - China flags a long-term plan to phase out vehicles powered by fossil fuels

• 6 July 17 - France announced that France will end sales of petrol and diesel vehicles by 2040

• China, UK, France and India all signalled plans to ban/limit sales of vehicles powered with gasoline or diesel fuels

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Ambitious EV targets by governments and auto-makers

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Government targets Automaker targets

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Major auto makers bringing new models to market

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Source: Bloomberg New Energy Finance 31 July 2018

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6X Growth in lithium ion battery mega-factories by 2020

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Source: Benchmark Minerals 31 July 2018

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Graphite is a key component of a lithium ion battery

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(Occasionally small% silicon)

Note: Indicative and illustrative information with approximations applied 31 July 2018

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Regardless of LIB type, graphite anode is the most prevalent

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Lithium-ion battery resource composition by cathode chemistry

Kg / kWh
2.50						Phosphorous
						Iron
0.00 0.50 1.00 1.50 2.00	1.00 0.70 0.12 0.12 0.02		1.00 0.45 0.25 0.10 0.15	1.00 0.65 0.35	1.00 1.10 0.15	Manganese Aluminum Lithium Cobalt Nickel Graphite Anode
	Nickel Cobalt Aluminium		Nickel Manganese Cobalt	Lithium Iron Phosphate	Lithium Cobalt Oxide
	(NCA)		(NMC1)	(LFP)	(LCO)

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How much graphite anode material is inside?

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Applications Cylindrical battery cells Anode material
Home storage ~1,000 cells ~ 10kg ~ US $100
13.5 kWh (18650 size) (~20% of battery cell weight)
(Av. home use 20 kWh/day)
Electric vehicle ~7,000 cells ~ 70kg ~ US $700
80 kWh (18650 size)
(400km+ full charge range)
Grid storage ~9,000,000 cells ~ 90t ~ US $900,000
130 mWh (18650 size)
(size announced for SA)
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Note: Indicative and illustrative information with approximations applied

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Graphite demand to increase to over 1mt by 2030

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Source: EV Outlook 2018, Bloomberg New Energy Finance

Note: Copper includes copper current collectors and pack wiring. Aluminium includes aluminium current collectors, cell and pack materials and aluminium in cathode active materials

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