Novonix : Half Year Report Period to 30 June 2023

NOVONIX Limited has changed its financial year end to December 31 (previously June 30)

Providing revolutionary solutions to the battery industry

NOVONIX Limited

NOVONIX LIMITED

ABN 54 157 690 830

INTERIM FINANCIAL REPORT FOR THE HALF-YEAR ENDED JUNE 30, 2023

NOVONIX Limited

CORPORATE DIRECTORY

Directors	Admiral R J Natter, US Navy (Ret.)
	D Akerson BS (Eng), MSc (Economics)
	A Bellas B. Econ, DipEd, MBA, FAICD, FCPA, FGS
	R Edmonds CPA, BBA (Acct)
	Z Golodryga MEng (Mech)
	Andrew N. Liveris AO, BE (Hons) Doctor of Science
	(honoris causa)
	J Oelwang BS (Hons)
Secretary	S M Yeates CA, B.Bus
Registered office in Australia	McCullough Robertson
	Level 11, Central Plaza Two
	66 Eagle Street
	Brisbane QLD 4000
Principal place of business	Level 38, 71 Eagle Street
	Brisbane QLD 4000
Share register	Link Market Services Limited
	Level 21, 10 Eagle Street
	Brisbane QLD 4000
	www.linkmarketservices.com.au
Auditor	PricewaterhouseCoopers
	480 Queen Street
	Brisbane QLD 4000
	www.pwc.com.au
Solicitors	Allens Linklaters
	Level 26
	480 Queen Street
	Brisbane QLD 4000
Bankers	Commonwealth Bank of Australia
Stock exchange listing	NOVONIX Limited shares are listed on the Australian
	Securities Exchange ("ASX") and American Depositary
	Receipts ("ADR's") are listed on the Nasdaq Stock
	Market.
Website address	www.novonixgroup.com

NOVONIX Limited

1

HALF-YEAR REPORT - JUNE 30, 2023

con

REVIEW OF OPERATIONS AND ACTIVITIES

NOVONIX Limited ("the Group") is a leading battery technology company revolutionising the global lithium- ion battery industry with innovative, sustainable technologies, high-performance materials, and more efficient production methods. The Group manufactures industry-leading battery cell testing equipment, is growing its high-performance synthetic graphite anode material manufacturing operations, and has developed an all-dryzero-waste cathode synthesis process. Through advanced R&D capabilities, proprietary technology, and strategic partnerships, NOVONIX has gained a prominent position in the electric vehicle and energy storage systems battery industry and is powering a cleaner energy future.

Our vision is to provide revolutionary clean energy solutions to the battery industry. Therefore, we are focused on the development of materials and technologies that support key ESG criteria in the field of battery materials and technologies, including: longer life batteries, higher energy efficiency, reduced chemical usage, reduced waste generation, and cleaner power inputs. This effort is rooted in our fundamental Group values of curiosity, collaboration, and commitment that support social impact and embody NOVONIX's approach to corporate responsibility.

NOVONIX's Battery Technology Solutions division ("BTS") focuses on innovative battery research and development, along with providing advanced battery testing equipment and services on a global scale. BTS provides unique visibility across the battery value chain and allows the Group to continue to be an industry leader, delivering materials and technologies to support high-performance and cost-effective battery development. NOVONIX's Anode Materials division ("NAM") manufactures high-performance synthetic graphite anode materials used to make lithium-ion batteries that power electric vehicles, personal electronics, medical devices, and energy storage units.

Half-Year Results

During the half-year ended June 30, 2023, NOVONIX had an after-tax loss of $28.1 million compared to a $31.0 million loss in the same period in 2022. Cash on the consolidated balance sheet was $99.1 million at June 30, 2023, compared to $99.0 million at December 31, 2022. Net assets over the same period declined $24.1 million to $202.0 million as of June 30, 2023. Total revenue increased 23% to $3.9 million compared to the same 2022 period driven by BTS hardware and service sales. All figures are in U.S. Dollars, unless otherwise noted.

KEY HIGHLIGHTS

For the six months ended June 30, 2023, NOVONIX executed against its long-term strategic initiatives, announced key strategic partnerships, progressed operational knowledge through furnace operations and explored additional avenues to create long-term shareholder value.

March 2023

NOVONIX has agreed to incorporate a joint venture ("JV") with TAQAT Development Company ("TAQAT") to produce battery materials in the Middle East & North Africa ("MENA") region.

NOVONIX Limited

2

HALF-YEAR REPORT - JUNE 30, 2023

April 2023

NOVONIX announced the launch of a pilot production facility in Halifax, Nova Scotia, leveraging its patent-pendingall-dryzero-waste cathode synthesis technology.

May 2023

NOVONIX participated in several investor and industry events including Citi's 2023 Energy & Climate Technology Conference, Evercore ISI Electrification Metals and Enabling Technologies Conference, Rho Motion Q2 EV & Battery Seminar Series Live, and B. Riley Securities 23rd Annual Institutional Investor Conference.

June 2023

NOVONIX entered into a joint development agreement ("JDA") with LG Energy Solution ("LGES") to research and develop artificial graphite anode material for lithium-ion batteries.

NOVONIX issued unsecured convertible loan notes to LGES for proceeds of $30 million.

NOVONIX joined Accelerate, Canada's Zero-Emission Vehicle ("ZEV") Supply Chain Alliance, in an effort to strengthen Canada's battery ecosystem and onshore the supply chain at a pivotal moment for the industry.

NOVONIX participated in several investor and industry events including Benchmark Minerals Battery Gigafactory USA 2023 Conference, Shaw and Partners, ASX Graphite Virtual Conference, and Jefferies Sales Desk Briefing Video Conference.

NOVONIX OUTLOOK

As an industry leader, NOVONIX is at the forefront of onshoring the battery supply chain through its product innovation and intellectual property development in battery materials and technology. The global demand for high-performance battery materials and technology continues to increase significantly as the world grapples with increasing energy supply and demand imbalances, as demonstrated by the growing desire for a domestic localised battery supply chain. NOVONIX is opportunistically positioned to benefit from potential U.S. government funding opportunities offered through the Bipartisan Infrastructure Law, Defense Production Act, and Department of Energy Loan Programs Office, all of which aim to advance domestic processing of critical materials.

The Group has built a team of top talent with the experience to drive innovation company-wide and believes it has the next generation technology needed to support the rapidly growing electric vehicle ("EV") and energy storage systems ("ESS") markets in North America. NOVONIX is focused on scaling its production capacity of synthetic graphite to meet the growing demands of its customers, through increasing production capabilities at its facility in Chattanooga, Tennessee by investing in future expansions. The Group has already recognised significant technological milestones on its proprietary graphitization process and remains on track to commence commercial production in 2024 to support its supply agreement with KORE Power, Inc. ("KORE Power").

NOVONIX Limited

3