NOVONIX Ltd — Interim / Quarterly Report 2021

Jul 29, 2021

==> picture [365 x 47] intentionally omitted <==

Graphite Graphite

10 µm SC 622

SC-622

==> picture [225 x 154] intentionally omitted <==

==> picture [214 x 154] intentionally omitted <==

NOVONIX provides battery development and material technology. We develop and supply what we believe to be the most accurate battery testing technology in the world. To our knowledge, we are the only qualified US-based supplier of battery-grade synthetic graphite anode material.

==> picture [870 x 381] intentionally omitted <==

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

Better Performance, Longer Life, Lower Cost
Only Qualified US-Based Developing New Applications
Most Accurate Battery Testing
Supplier of Synthetic Graphite and Partnerships
Technology
Anode Material
Cathode Materials
Battery Technology Solutions Anode Materials
ASX: NVX OTCQX: NVNXF
----- End of picture text -----

1

• Recap of Recent Notable Milestones

• Quarterly Activities Report (April – June 2021)

• Corporate Update

• NOVONIX Anode Materials (NAM) Update

• Battery Technology Solutions (BTS) Update

• Cathode/DPMG Update

• Appendix

• New Additions to the Team

• NOVONIX Anode Materials Growth Plan

• ESG and the Importance of Longer Life Batteries

==> picture [183 x 23] intentionally omitted <==

ASX: NVX OTCQX: NVNXF

2

22 Dec 2020: Expanded collaboration with Samsung to utilize the next generation 12 Feb 2021: NOVONIX 26 Feb 2021: Completion of 09 May 2021: Filed draft technology being developed 19 Jan 2021: Leading entered into a new five year ASX equity raise of A$115m registration statement with with Harper International, researcher, Dr. Jeff Dahn research sponsorship to support growth of U.S. SEC in connection with a with deliveries set to appointed as Chief Scientific agreement with Mark NOVONIX Anode Materials potential initial public commence in the second half Advisor, effective July 2021 Obrovac’s Research Group of with an additional ~A$16m offering in the U.S. via of 2021 Dalhousie University from directors Nasdaq

==> picture [12 x 39] intentionally omitted <==

==> picture [11 x 37] intentionally omitted <==

December 2020

==> picture [11 x 49] intentionally omitted <==

==> picture [11 x 39] intentionally omitted <==

22 Dec 2020: Strategic alliance announced with US-based 21 Jan 2021: NOVONIX Harper International to Anode Materials selected to develop specialized furnace receive US $5.57mm grant technology to enhance from the US Department of NOVONIX’s synthetic graphite Energy manufacturing process

==> picture [11 x 37] intentionally omitted <==

==> picture [11 x 39] intentionally omitted <==

19 Feb 2021: Emera and NOVONIX partner on innovative residential energy storage technology

==> picture [11 x 39] intentionally omitted <==

==> picture [11 x 38] intentionally omitted <==

Apr 2021: Completed installation of first Generation 2 furnace system built by Harper under our strategic partnership program and initiated build of first Gen 3 furnace

==> picture [12 x 38] intentionally omitted <==

Today

==> picture [11 x 38] intentionally omitted <==

23 Jun 2021: Under contract to purchase and retrofit former Alstom building in Chattanooga, TN. – 400k+ sqft and will accommodate a planned 8k+ tonne per year production[1]

1. Purchase completed on July 28, 2021

==> picture [183 x 23] intentionally omitted <==

ASX: NVX

OTCQX: NVNXF

3

April – June 2021

• Zacks SCR initiated research coverage on NVNXF – 16 April 2021

• Shareholders approved AUD $16.45M placement to Directors of NOVONIX – 27 April 2021

• Announced NOVONIX is exploring secondary trading of its securities on the Nasdaq – 10 May 2021

• Released updated company presentation –2 June 2021

• Appointed Chris Hay as an alternate director to Trevor St. Baker AO – 17 June 2021

• Announced expansion of NOVONIX Anode Materials business with plans to purchase 400,000+ square-foot plant in Chattanooga, TN – 23 June 2021

• Management initiated a strategic review of the Mt. Dromedary high grade graphite deposit asset located in Northern Queensland, Australia

• Cash balance as of 30 June 2021: $136.6 million

Agreement with Battery Makers

==> picture [237 x 372] intentionally omitted <==

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

SANYO Electric Co., Ltd. a
subsidiary of Panasonic
Corporation of Japan
----- End of picture text -----

==> picture [183 x 23] intentionally omitted <==

ASX: NVX

OTCQX: NVNXF

4

Post-June Quarter and Ongoing:

• Post-June Quarter:

• Prof. Jeff Dahn joined NOVONIX team as Chief Scientific Advisor – 1 July 2021

• Joined Battery Materials Technology Coalition to advocate for development of the US LIB supply chain – 7 July 2021

• Corporate Connect Research initiated research coverage on NVX – 26 July 2021

• Presenting at Sharecafe Webinar – 30 July 2021

• NOVONIX continues to:

• Monitor clean energy policies in North America and Europe and liaise with relevant agencies

• Provide samples of anode product and engage in discussion of qualification requirements and production capacity planning with prospective cell manufacturer and automotive OEM customers

• Engage and progress relationships with multiple international partners for potential technology partnership opportunities

• Leverage NOVONIX Battery Technology Solutions’ (BTS) position in the market to identify strategic partnership opportunities for new technology development with new and existing customers

==> picture [183 x 23] intentionally omitted <==

ASX: NVX

OTCQX: NVNXF

5

April – June 2021

• Closed on new anode materials facility in Chattanooga, TN and awarded incentive packages related to hiring, power consumption and capital investment [Post-June Quarter]

• Furnace Systems and Production Capacity:

• Optimizing production of material through Generation 2 system to support next steps in customer qualification programs

  • Scheduling upcoming shipments to Samsung SDI for qualification program

  • First mass production materials from Generation 2 have been shipped to Sanyo for qualification

• Began facility preparations for first Generation 3 furnace system to be installed in Tennessee before the end of calendar year

• Continued ordering additional necessary equipment to meet ongoing production targets

• Significant progress on Big Blue engineering for process optimization to maximize facility throughput

• Continued process technology development and partnership discussions with equipment and material suppliers

• Progressed additional customer relationships with strong growing demand in the United States for local supply of synthetic graphite

==> picture [183 x 23] intentionally omitted <==

ASX: NVX

OTCQX: NVNXF

6

April – June 2021

• Continued strong revenue growth and expansion of hardware sales and R&D service offerings

• Completing ~8,800 sq ft building addition to current facility for cell assembly and testing [Post-June Quarter]

• Closed on new ~35,000 sq ft facility in Halifax area and started facility renovations to move in before the end of this calendar year

• Received approval for up to CA$1,281,819 through a payroll rebate from Nova Scotia Business Inc over 5 years to support hiring plans across the business

• Cathode/DPMG Commercialization Activities:

• Expanding internal cathode development team and capabilities

• Continued process development internally and collaboratively with Dr. Obrovac’s group at Dalhousie pursuing new IP

• Equipment ordering started for 10 tonne per annum capable demonstration line to be installed in new BTS facility in 2022

• Received approval for $475,000 grant from NRC-IRAP to support expansion of cathode development team [Post-June Quarter]

• Other funding opportunities initiated to support scale up for cathode commercialization program

==> picture [183 x 23] intentionally omitted <==

ASX: NVX

OTCQX: NVNXF

7

==> picture [193 x 136] intentionally omitted <==

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

Current Funding
----- End of picture text -----

==> picture [193 x 135] intentionally omitted <==

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

Current Status
----- End of picture text -----

==> picture [193 x 136] intentionally omitted <==

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

Next Steps
----- End of picture text -----

==> picture [51 x 66] intentionally omitted <==

==> picture [51 x 65] intentionally omitted <==

==> picture [51 x 66] intentionally omitted <==

• NOVONIX is funding $8.5 million for DPMG commercialization:

• $3.5 million for integration / deployment of DPMG technology into NOVONIX’s cathode materials, driving higher yield, less waste, higher performance and higher margins

• $5.0 million for commercialization of DPMG technology to make high-performance longlife cathode materials including comprehensive testing at pilot scale and development of full-scale processing capability

• Pilot scale demonstration

• Optimizing conditions for different particles:

• High nickel and cobalt free materials

• Coatings / dopants for performance improvement

• Continuing to file new patents on IP around DPMG inventions and findings

• Collaboration with technology partners and customers as well as evaluation of commercialization options including licensing, partnering and greenfield development

• 10 tonne per year capable demonstration line by 2022

==> picture [183 x 23] intentionally omitted <==

ASX: NVX

OTCQX: NVNXF

8

With multiple patent applications filed, NOVONIX believes that its Dry Particle Microgranulation (DPMG) technology delivers higher yields at lower costs

==> picture [918 x 350] intentionally omitted <==

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

Input Material In-Process Product
Graphite
Materials
Higher Yield (recovery of waste fines to high value product) | Relatively lower cost | Flexible precursor inputs
Input Material Polycrystaline Product Single Crystal Product
Or
Cathode
Materials
10µm 10µm
----- End of picture text -----

Higher Yield (recovery of waste fines to high value product) | No water waste | Relatively lower cost | High Nickel cathode materials

==> picture [183 x 23] intentionally omitted <==

ASX: NVX

OTCQX: NVNXF

9

==> picture [250 x 32] intentionally omitted <==

Graphite Graphite

10 µm

SC-622 SC 622

==> picture [225 x 154] intentionally omitted <==

==> picture [214 x 154] intentionally omitted <==

Appendix

==> picture [629 x 126] intentionally omitted <==

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

Leadership Team
----- End of picture text -----

==> picture [324 x 43] intentionally omitted <==

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

Technical Advisors
----- End of picture text -----

Dr. Jeff Dahn Dr. Mark Obrovac Chief Scientific Advisor Sponsored Researcher

Dr Chris Burns Nick Liveris Rashda Buttar Suzanne Yeates Group CEO Group CFO SVP & General Counsel Financial Controller & Co Secretary

Board of Directors

Tony Bellas Chairman & Non-Executive Director

Greg Baynton Non-Executive Director

Robert Cooper Andrew N. Liveris AO Non-Executive Director Non-Executive Director

Trevor St Baker AO Admiral Robert J. Natter Non-Executive Director Executive Director

Key leadership and technical experience:

==> picture [183 x 23] intentionally omitted <==

ASX: NVX OTCQX: NVNXF

11

Professor Jeff Dahn Overview

• Leading researcher in the field of lithium-ion batteries and materials

• Currently holds the title of NSERC/Tesla Canada Industrial Research Chair with Dalhousie University

• Long career across both industry and academia, and has spent the last 25 years as a professor at Dalhousie University, with support from 3M Company and most recently, from Tesla

• Co-authored 730 papers and has 73 inventions with patents issued or filed, including some of the early patents related to Li[NiMnCo]O2 (NMC) cathode material in 2001

==> picture [643 x 381] intentionally omitted <==

==> picture [183 x 23] intentionally omitted <==

ASX: NVX OTCQX: NVNXF

12

NOVONIX – BTS (HQ) Bedford and Dartmouth, NS Canada Employees – 40 (as of June 30)

Recent News

• New facility purchased in Chattanooga for the anode materials business; will accommodate planned 8,000+ tonne per year production

• New facility recently secured in Halifax dedicated to developing our cathode materials business

NOVONIX – Anode Materials Chattanooga, TN USA Employees – 30 (as of June 30)

• BTS operating from 55,000+ sq ft in July 2021 in Bedford and Dartmouth, Nova Scotia

• NAM operating from 520,000+ sq ft in July 2021 in Chattanooga, TN

• Continued engineering and planning work for 30,000 tpa expansion plant to support 2025 NAM production expansion

ASX: NVX OTCQX: NVNXF

13

==> picture [550 x 368] intentionally omitted <==

Key Observations

• NOVONIX Anode Materials purchases the former Alstom building in Chattanooga, TN on July 28, 2021

The 400,000+ square-foot plant will accommodate a planned 8,000+mtonne per year production to bring a total of 10,000 tonnes per year of synthetic graphite anode material in service by 2023

The expansion is fully funded by cash on hand, underpinned by the equity raise on the ASX in February

Expected to create 290 jobs and represents a potential investment up to $160 million, which at the high end would include capacity above 8,000 tonnes of production

TN Governor, Bill Lee, said “When companies like NOVONIX choose to expand in Tennessee, it underscores our state’s business-friendly environment, highly skilled workforce, and reputation for automotive strength. This project and the creation of nearly 300 new jobs will have a lasting impact on the Chattanooga community and Tennessee's economy.”

==> picture [183 x 23] intentionally omitted <==

ASX: NVX OTCQX: NVNXF

14

==> picture [926 x 453] intentionally omitted <==

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

Phased Growth Plan For NOVONIX Anode Materials
Phase 3 (Large Scale)
150K Tonne / Yr(1)
Volume /
tonnage phased
Phase 2 (Medium Scale)
growth
40K Tonne / Yr (1)
Phase 1 (Current Ramp-up)
10K Tonne / Yr(1)
2023 2025 2030
2023 2025 2030
Anode Materials Anode Materials Anode Materials
NOVONIX’s
annual production volume would annual production volume would annual production volume would
illustrative
(2) equate to: equate to: equate to:
scale plan
~181K ~727K ~2.7mm
per year per year per year
----- End of picture text -----

==> picture [145 x 152] intentionally omitted <==

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

NOVONIX’s
illustrative
(2)
scale plan
----- End of picture text -----

(1) Company expectations, which may or may not materialize. (2) Assumes 55kg of graphite per EV.

==> picture [183 x 23] intentionally omitted <==

ASX: NVX OTCQX: NVNXF

15

	Implied North America Graphite Anode Demand (Kt)		Gigafactory Capacity Increasing to Support North American EV Growth	Gigafactory Capacity Increasing to Support North American EV Growth	Gigafactory Capacity Increasing to Support North American EV Growth	Gigafactory Capacity Increasing to Support North American EV Growth	Gigafactory Capacity Increasing to Support North American EV Growth	Gigafactory Capacity Increasing to Support North American EV Growth
	106 677 923 2021 2025 2030 Source: Company press releases and management analysis. (1) Based on NCM 811 chemistry. (2) Expected capacity by 2028. Implied North America Cathode Material Demand1 (Kt) 71 453 618 2021 2025 2030 CAGR: 59% CAGR:6% CAGR: 59% CAGR:6%		Battery Manufacturer	Auto OEM	Investment	2025E Capacity	Status	State
					$300M	16 GWh	Operating	MI
					NA	53 GWh	Operating	NV
					NA	10 GWh	Operating	TN
					$2.3B	15 GWh	Announced Dec 2019	OH
					$1B	95 GWh	Operating 2021	TX
	Implied North America Cathode Material Demand1 (Kt)
					$1.7B	10 GWh	Operating 2022	GA
					$185M	5 GWh	Operating 2022	QC (Canada)
				NA	NA	32 GWh (2)	Operating 2022	NY
					$2.3B	35 GWh	Operating 2023	TN
					~$0.8B	12 GWh	Operating 2023	GA
			(BlueOvalSK JV)		NA	60 GWh	MoU signed May 2021	TBA (U.S.)

==> picture [183 x 23] intentionally omitted <==

ASX: NVX

OTCQX: NVNXF

16

Inputs Process Outputs

• • •

• Clean sources[1] Proprietary technology means Negligible emissions, less than - Carbon free resources fewer processing steps and less alternatives represent 59% energy input energy consumption •

   - Longer lasting batteries
  

  • No chemical purification

• Renewables represent 16% energy input

• • Circular use of oil-gas byproducts and carbon offsetting

• FY2020 figures from Tennessee Valley Authority website.

==> picture [183 x 23] intentionally omitted <==

ASX: NVX

OTCQX: NVNXF

17

==> picture [70 x 69] intentionally omitted <==

==> picture [64 x 54] intentionally omitted <==

Vehicle to Grid Provides Two Key Advantages

Enables fleets and individuals to reduce cost of ownership by charging at non-peak times and discharging to buildings or selling to grid at peak times

Ability to provide power to buildings or national grids during peak hours provides stability to grids

V2G Unit

==> picture [22 x 9] intentionally omitted <==

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

Grid
----- End of picture text -----

Electric Vehicle

==> picture [35 x 13] intentionally omitted <==

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

AC/DC
Bi-directional
----- End of picture text -----

Several Key EV OEMS Have Announced V2G Plans

==> picture [101 x 57] intentionally omitted <==

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

•
•
----- End of picture text -----

• All VW MEB-based electric cars will be V2G capable beginning in 2022, includes cars from Audi, Skoda, and Seat-Cupra

• Currently testing DC-Wallbox with bi-directional DC charging stations in Germany

==> picture [74 x 75] intentionally omitted <==

• Integrating vehicle-to-grid technology in electrical architecture of Model 3

• Tesla’s system could power up to 22kW at any one moment – more than enough to power the dryer, heater or A/C.

• Currently conducting V2G project “i-rEzEPT”, utilizing Nissan LEAF and temporary storage systems to power homes

• • Produces the Nissan Leaf, the only mass production EV on the market with bi-directional capability

==> picture [60 x 51] intentionally omitted <==

==> picture [21 x 5] intentionally omitted <==

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

Inverter
----- End of picture text -----

==> picture [192 x 38] intentionally omitted <==

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

High Voltage
Battery
Control Unit
----- End of picture text -----

==> picture [69 x 27] intentionally omitted <==

• 2022 F-150 Lightning will be one of the first EV’s to take advantage of bi-directional charging in the U.S. market

• The Lightning will offer a solar option that will provide more energy independence and grid contribution

Source: CleanTechnica, The Driven, and Bloomberg.

==> picture [183 x 23] intentionally omitted <==

ASX: NVX

OTCQX: NVNXF

18

Corporate

• Chairman: Tony Bellas

Email: tony@novonixgroup.com

Operations

NOVONIX BTS:

177 Bluewater Road, Bedford, NS B4B 1H1, Canada 110 Simmonds Drive, Dartmouth, NS B3B 1N9, Canada

• Company Secretary and Financial Controller: Suzanne Yeates

Email: suzie@novonixgroup.com

• Group CEO: Dr Chris Burns

Email: chris@novonixgroup.com

NOVONIX Anode Materials:

353 Corporate Place, Chattanooga, TN, 37419, USA 1029 West 19[th] Street, Chattanooga, TN, 37408, USA

• Group CFO: Nick Liveris

Email: nick@novonixgroup.com

Send all investor queries to: IR@novonixgroup.com

This announcement has been authorised for release to the ASX by the Chairman, Tony Bellas.

==> picture [183 x 23] intentionally omitted <==

ASX: NVX OTCQX: NVNXF

19