Novonix (NVX) Soars 22.73% on Graphite Milestone, Expansion Plans Fuel 28.57% Rally to 2025 High

NOVONIX (NVX) surged 22.73% on Thursday, marking a two-day rally of 28.57% and reaching its highest level since October 2025, with an intraday gain of 40.91%. The move follows key operational progress in synthetic graphite production and strategic expansion plans that have reinvigorated investor confidence.

The stock’s ascent stems from the delivery of its first commercial-grade synthetic graphite sample to a North American client, validating the company’s proprietary continuous graphitization furnace technology. This milestone, achieved at its Riverside facility in Tennessee, paves the way for industrial-scale production targeting battery, defense, and industrial sectors. The facility is set to begin mass production for Panasonic in 2026, solidifying Novonix’s role in the lithium-ion battery supply chain.

Complementing this, Novonix announced plans to construct a second synthetic graphite plant in Chattanooga, with combined annual capacity exceeding 50,000 metric tons. The dual-site strategy aims to meet rising demand for high-performance graphite in electric vehicles and energy storage, while diversifying revenue streams through industrial applications. This approach reduces reliance on battery-grade graphite and accelerates near-term cash flow.

Strategic partnerships and technological differentiation further bolster the company’s position. Novonix’s patented all-dry cathode synthesis process aligns with sustainability goals, while its expertise in battery cell testing strengthens its credibility with major clients. The Tennessee facilities also enable geographic diversification, mitigating supply chain risks and enhancing access to North American markets.

Despite these positives, financial metrics remain a concern. Novonix operates with negative operating margins and liquidity constraints, raising questions about its ability to sustain growth. However, upcoming catalysts—including production milestones and supply agreements with Panasonic—could drive long-term value. The stock’s high volatility, reflected in a beta of 2.32, underscores the need for cautious optimism as the company transitions from development to scalable production.