NOVONIX Ltd — Interim / Quarterly Report 2018

Feb 22, 2018

==> picture [335 x 45] intentionally omitted <==

==> picture [238 x 175] intentionally omitted <==

HALF-YEAR UPDATE 23 FEBRUARY 2018

==> picture [259 x 175] intentionally omitted <==

accelerating the global development and adoption of Lithium Ion Battery technologies for a cleaner energy future

NOVONIX Limited (ASX:NVX)

23 FEBRUARY 2018

1

GENERAL DISCLAIMER

• 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.

NOVONIX Limited (ASX:NVX)

23 FEBRUARY 2018

2

NOVONIX HALF-YEAR HIGHLIGHTS

• On-track for execution of strategy to deliver the world’s highest-performance battery anode materials and battery testing technology

• Pilot manufacturing plant now operating and our first product is looking very good

• Strong sales growth for battery testing services (BTS), 5X bigger building & staffing-up

• Strengthening of the Board with Admiral Robert Natter and pending appointment of Andrew Liveris, AO

• A$5m in placements undertaken, including A$1m from Mr Liveris and Admiral Natter

• Strengthening of the balance sheet with 100% early conversion of A$16.1m loan notes

• Strong growth and outlook for the global Lithium Ion Battery market

NOVONIX Limited (ASX:NVX)

23 FEBRUARY 2018

3

First high-purity graphite anode material produced at the PUREgraphite pilot plant in USA is exhibiting results that exceed competitors’ products and our expectations

• Physical characteristics of product from the Pilot Plant are the best we have seen of any material

• Electrochemical testing underway - expected to be very good

==> picture [427 x 289] intentionally omitted <==

Image: Furnace Section of PUREgraphite Pilot Plant, Chattanooga, Tennessee, USA

NOVONIX Limited (ASX:NVX)

23 FEBRUARY 2018

4

PUREgraphite anode material exceeding benchmarks

PUREgraphite’s highperformance anode material:

• consistently demonstrating very high electrochemical performance above benchmarks for commerciallyavailable natural and artificial graphite anode materials, and

• exceeds performance of what we regard as the industry best benchmark - PANASONIC/TESLA EV cell (sourced from the vehicle)

==> picture [576 x 301] intentionally omitted <==

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

PUREgraphite CELLS
TESLA CELLS
The higher the coulombic PUREgraphite
efficiency the longer the Commercial NG
battery cell life
Commercial AG
Tesla Battery
----- End of picture text -----

NOVONIX Limited (ASX:NVX)

23 FEBRUARY 2018

5

PUREgraphite now focused on Extreme Fast Charging (XFC)

• Charge rates for all EV batteries is a major issue today for the industry

• Graphite is a critical factor in achieving maximum charge rate

• Fast charging is restricted by lithium plating on graphite anode electrode, resulting in rapid capacity loss

• Thinner electrodes can be used to address the problem, but with 2X increase in cost and 2X decrease in volumetric energy density, this will not solve the EV challenge

• PUREgraphite now focused on optimizing graphite anode materials for XFC

==> picture [521 x 365] intentionally omitted <==

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

(75min, 90 kWh)
(24min, 45 kWh)
1.25 C
0.6 C
----- End of picture text -----

NOVONIX Limited (ASX:NVX)

23 FEBRUARY 2018

6

• PUREgraphite has expertise and IP in both artificial graphite (AG) and natural graphite (NG) anode materials, now biased to artificial graphite – why?

• Our extensive research shows that AG consistently and significantly outperforms NG in terms of electrochemical efficiency (cell life)

• Battery cell life is paramount for EV and ESS markets (as opposed to consumer electronics)

• NG consistently and marginally outperforms AG in capacity (energy density)

• A blend of AG and NG can optimise performance characteristics but overall our view is that there will be a bias to AG for battery life and safety benefits for EV and ESS

• • PUREgraphite IP and capability across both AG and NG is a strength aligned with industry trends for Electric Vehicles (EV) and Energy Storage Systems (ESS)

Note: Artificial graphite (AG), also known as synthetic graphite, is manufactured from petroleum feedstock whereas natural graphite is extracted from the earth (mining activity)

NOVONIX Limited (ASX:NVX)

23 FEBRUARY 2018

7

Independent research also predicts that artificial graphite anode material will dominate

NOVONIX Limited (ASX:NVX)

23 FEBRUARY 2018

8

NOVONIX technology continues to be embraced by tier one global companies with new and repeat sales

• Strong sales for the half year with many new and repeat customers from around the world including 10 companies on the Fortune 500 list including world leading consumer electronics and battery manufacturing companies

• Customer relationships help position NOVONIX for the introduction of future products and services

• Note: Many of these companies cannot be named due to confidentiality terms agreed by NOVONIX

==> picture [424 x 318] intentionally omitted <==

Image: NOVONIX Ultra High Precision Chargers

NOVONIX Limited (ASX:NVX)

23 FEBRUARY 2018

9

And NOVONIX BTS is expanding, recruiting new expert staff

==> picture [144 x 144] intentionally omitted <==

==> picture [117 x 145] intentionally omitted <==

Image: Kathlyne Nelson PhD NVX Sales Representative Started in January 2018

Image: Ken Broom Lithium-ion Battery Industry Expert Starts in April 2018

• PhD graduate from the Jeff Dahn Research Group at Dalhousie University (sponsored by TESLA Motors/Energy)

• In-depth research experience on lithium-ion batteries with the goal of improving energy density, safety, lifetime and cost of batteries

• 26 years in lithium-ion battery industry

• COO for China BAK Battery in Shenzhen for six years (2007 to 2013) and they are now No 5 in China with 1.5 GWh production in 2017

• Formerly responsible for 4 battery plants

• Experience in large scale battery plant business development, operations, research and development, sales, marketing, China and North America

NOVONIX Limited (ASX:NVX)

23 FEBRUARY 2018

10

… Rapid growth in production of lithium-ion batteries Strong Market Dynamics: – Source: BENCHMARK MINERALS 6X growth in Lithium-ion megafactories by 2020

==> picture [473 x 186] intentionally omitted <==

==> picture [462 x 149] intentionally omitted <==

==> picture [404 x 329] intentionally omitted <==

NOVONIX Limited (ASX:NVX)

23 FEBRUARY 2018

11

Goldman Sachs Research

…being driven by ambitious EV targets by governments and auto-makers

==> picture [333 x 399] intentionally omitted <==

==> picture [339 x 399] intentionally omitted <==

NOVONIX Limited (ASX:NVX)

23 FEBRUARY 2018

12

NOVONIX INVESTMENT HIGHLIGHTS

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 12 countries

• Our battery cell test equipment now used by leading battery, auto and equipment makers and researchers including PANASONIC, CATL, TESLA, BOSCH, Dyson, 3M, Alcatel-Lucent, DALHOUSIE University, Pacific Northwest National Laboratory, Helmholtz Institute and many others

Innovative new products and process being commercialised

• Developing and commercialising new innovations in battery anode materials, anode manufacturing processes, battery cell test equipment and electrolytes

Backed by a world-class natural graphite resource in Australia

• NOVONIX owns a high grade, long-life natural graphite deposit in Queensland, Australia

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 ~45% of the equity in the company

Great 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

NOVONIX Limited (ASX:NVX)

23 FEBRUARY 2018

13

And for the technically minded – here is some of our PUREgraphite data

How good are current Lithium Plating Region EV battery cells? • Tesla Model S batteries • Charge CC to different cutoff voltages • 3.90-4.10V • 80-100%SOC • All cells start to plate lithium at 1C 23 FEBRUARY 2018 NOVONIX Limited (ASX:NVX) 14

For those who know anode materials – here is the challenge

Optimisation of Lithium intercalation

• Particle coating:

• CVD

• Pitch

• SEI coating

• Increased by additives such as VC, LiBOB, etc.

• Resistance can change over time

• Needed for life

==> picture [294 x 316] intentionally omitted <==

==> picture [313 x 244] intentionally omitted <==

NOVONIX Limited (ASX:NVX)

23 FEBRUARY 2018

15

==> picture [396 x 52] intentionally omitted <==

==> picture [268 x 94] intentionally omitted <==

==> picture [282 x 93] intentionally omitted <==

==> picture [234 x 95] intentionally omitted <==

CORPORATE

Brisbane, Queensland, AUSTRALIA Contact: Philip St Baker Email: phil@novonixgroup.com Level 12 – 114 Edward Street, Brisbane, Qld, Australia Telephone: +61 438-173-330

BTS FACILITY

Bedford, Nova Scotia, CANADA Contact: Dr Chris Burns Email: chris@novonixgroup.com 177 Bluewater Road, Bedford, NS B4B 1H1, Canada Telephone: +1 902-449-9121

PUREgraphite FACILITY

Chattanooga, Tennessee, USA Contact: Nick Liveris Email: nick@novonixgroup.com 1084 Duncan Avenue, Chattanooga, TN, 37404, USA Telephone: +1 989-859-3213

NOVONIX Limited (ASX:NVX)

23 FEBRUARY 2018

16