NOVONIX Ltd — Interim / Quarterly Report 2020

Jan 28, 2021

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10 µm

SC-622 SC 622

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October – December 2020

• Launched Investor Newsletter – 20 October 2020

• Presented at Benchmark Week Conference – 8 December 2020

• Released Investor Newsletter #2 – 15 December 2020

• Announced becoming a founding member of the Zero Emissions Transportation Association (ZETA), the first industry-backed coalition of its kind advocating for 100% of vehicles sold by 2030 to be electric vehicles (EVs) – 22 December 2020

• Announced a strategic alliance with Harper International on specialized furnace technology for battery anode material – 22 December 2020

• Announced an update regarding the planned delivery schedule for the contract to supply Samsung SDI with 500 tons of the PUREgraphite synthetic anode material for use in lithium-ion batteries – 22 December 2020

• Cash balance as of 31 December 2020: $25,286,000

• Post-December Quarter:

• NOVONIX was added to the OTCQX Composite Index and the OTCQX International Index

• Prof. Jeff Dahn appointed Chief Scientific Officer to the Company (effective July 2021)

• Awarded US$5.57M from U.S. Department of Energy for new furnace technology development

Agreements with Battery Makers

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SANYO Electric Co., Ltd. a subsidiary of Panasonic Corporation of Japan

• NOVONIX continues to monitor clean energy policies in North America and Europe and liaison with relevant agencies where appropriate

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ASX: NVX

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October – December 2020

• Initiated transition plan from Generation 1 furnace technology to Generation 2 systems for qualification of full 2,000 ton per annum (tpa) planned plant capacity

• Proprietary systems designed by Novonix and Harper to support improved economics in capital expansion and operational costs compared to current Generation 1 systems

• First Generation 2 system to begin installation at PUREgraphite facility in February 2021

• Current inventory held as work-in-progress awaiting Generation 2 systems to continue finishing for delivery to Samsung and others

• Pilot line continued all normal operations for product development and customer sampling

• Product Development:

• Processing of new precursor materials for lower cost and improved performance with strong performance results validating PUREgraphite processing as flexible to input materials

• Targeted development programs for customer requested performance such as higher charge rate materials to support fast-charge vehicle applications

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October – December 2020

• Customer Engagement:

• Samsung and Sanyo will receive materials from Generation 2 furnace systems for mass production qualification after installation and commissioning

• Samsung audit of PUREgraphite plant will now be targeted at Generation 2 furnace systems

• Continued sampling programs with domestic and international battery manufacturers and automotive OEMs with strong feedback and desire to see demonstrated higher volume production

• Expansion Plans:

• 2,000 tpa plant expansion on track, equipment all on order in various stages of assembly and field testing before shipment

• Initiated expansion of lease to the additional 80,000 sq ft of current facility for beginning of FY22 or earlier

• Began engagement on plant and equipment engineering review and design for Phase 2 plant (25,000 tpa)

• Engaged in multiple potential technology partnership opportunities with international partners to enable faster global deployment of PUREgraphite’s technology

• Post-December Quarter: Awarded US$5.57M from U.S. Department of Energy for new furnace technology development

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October – December 2020

• Strong revenue growth and engagement in new materials development and evaluation programs as well as downstream application projects

• Expanded staff and initiated build out of addition to existing BTS facility, adding ~65% additional space for continued growth in cathode commercialization and new development work

• Expanded cell building capability, dryroom and infrastructure to support increased workload

• New projects commenced for global customers in mobility, energy storage and consumer electronics

• Cathode Commercialization Activities:

• Pilot line 90% commissioned with final piece of equipment delayed in shipping and will arrive in January

• Analytical lab fully commissioned

• Newly synthesized materials continuing electrochemical testing for internal qualification

• Continued growth in IP with additional patent applications to be filed in early 2021

• Engaged with multiple current commercial precursor and cathode suppliers

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Harper Company Overview

• Harper International (Buffalo, New York) is a global leader in complete thermal processing solutions and technical services essential for the production of advanced materials

• From concept to commercialization, from research scale to full production line operations, Harper produces cutting edge innovative furnace designs for worldwide markers

• Harper specializes on processing materials at high temperatures up to 3000°C and in non-ambient atmospheres

• For additional information, visit www.harperintl.com or email info@harperintl.com

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Professor Jeff Dahn Overview

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

• Currently holds the title of NSREC/Tesla Canada Industrial Research Char 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

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Appointment effective July 1, 2021

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• Chairman:

Tony Bellas

CORPORATE

• Group CEO: Dr Chris Burns

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OPERATIONS
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BTS - Bedford, Nova Scotia, CANADA

177 Bluewater Road, Bedford, NS B4B 1H1, Canada

Email: tony@novonixgroup.com Email: chris@novonixgroup.com

• Company Secretary and Financial • Group CFO: Controller: Nick Liveris Suzanne Yeates Email: nick@novonixgroup.com

Email: suzie@novonixgroup.com

PUREgraphite - Chattanooga, Tennessee, USA

Send all investor queries to: IR@novonixgroup.com

353 Corporate Place, Chattanooga, TN, 37419, USA

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

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