Game-changing partnership: Novonix and ICoNiChem to redefine nickel battery sustainability

NOVONIX Limited, a prominent battery technology company listed on NASDAQ and ASX, has joined forces with ICoNiChem Widnes Limited, a UK-based leader in cobalt and nickel salt production, to embark on a major collaboration that targets the sustainability of cathode materials. The companies have signed a Joint Collaboration Agreement to develop nickel-based cathode active materials (CAM) while emphasizing the use of recycled feedstocks, a crucial step in reducing environmental impacts and fortifying the supply chain for critical minerals.

Aiming for a greener battery supply chain

The partnership comes on the heels of the 2024 Canada-UK critical minerals initiative, under which NOVONIX and ICoNiChem have been selected for funding. The program is intended to propel projects linked to critical minerals—those essential for burgeoning industries like renewable energy, electric vehicles (EVs), and consumer electronics. NOVONIX’s Canadian division, NOVONIX Battery Technology Solutions Inc., is slated to receive CAD $127,928 in funding from Canada’s National Research Council Industrial Research Assistance Program, while ICoNiChem has been granted support from Innovate UK. The project’s budget stands at CAD $515,686.

Sustainable solutions at the forefront

Dr. Chris Burns, CEO of NOVONIX, mentioned that the initiative underscores the company’s mission to push the boundaries of sustainable technology. He expressed that NOVONIX is set to leverage its patented all-dry, zero-waste synthesis process to test and synthesize CAM using ICoNiChem’s recycled nickel and cobalt feedstocks. Burns added that the approach highlights NOVONIX’s aim to minimize cathode processing costs and bolster the critical mineral supply chain across North America and the UK.

Berk Sengul, Managing Director of ICoNiChem, echoed the sentiment, describing the partnership as a “fantastic opportunity” to collaborate with a world-class company like NOVONIX. Sengul emphasized that the project would enhance ICoNiChem’s role as a leader in the production of cobalt and nickel, enabling the development of a UK-based supply chain for nickel CAMs.

Critical role of recycled materials in advancing battery technologies

As part of the project, ICoNiChem will supply various recycled feedstocks, including cobalt and nickel carbonates and oxides. These materials will be assessed in NOVONIX’s cathode pilot line for optimal electrochemical performance. NOVONIX will also benchmark the materials against other leading cathode powders by incorporating them into full-scale battery cells. The overarching aim is to ensure superior material characteristics that align with market demands.

Upon achieving key project milestones, NOVONIX plans to explore commercial agreements to integrate ICoNiChem’s recycled materials into its cathode production process on a larger scale.

Industry-leading cathode synthesis technology

NOVONIX’s all-dry, zero-waste cathode technology, commissioned in July 2023, has already been recognized for its cost efficiency and waste reduction capabilities. Notably, an independent engineering report by Hatch Ltd. indicated that NOVONIX’s technology offers a significant cost advantage over traditional wet processes. More recently, the company secured a patent for this technology in Japan—a notable market for CAM production and use.

NOVONIX continues to sample and produce various grades of high-nickel cathode materials, showcasing their potential to meet commercialization partners’ specifications. The partnership with ICoNiChem is seen as a strategic step in expanding these capabilities while staying committed to sustainability.

Expert opinion: What it means for the battery industry

Experts view this collaboration as a major advancement in the pursuit of greener battery production. The project aligns with increasing global efforts to minimize the environmental footprint of lithium-ion battery production, a major hurdle for the burgeoning EV market. Recycled materials are playing an increasingly pivotal role, and NOVONIX’s patented technology, which significantly reduces waste, represents a breakthrough that many industry insiders believe could redefine the supply chain for cathode materials.

“This partnership exemplifies the direction the battery industry must take,” remarked an analyst in the battery sector, adding that such initiatives are crucial for reducing both dependency on virgin materials and the carbon footprint associated with mining and refining.

As EV sales climb globally, manufacturers are pressured to not only increase production capacity but to ensure that battery components are sustainably sourced. This move by NOVONIX and ICoNiChem could provide a model for other companies to follow, reinforcing supply chains that are not only secure but also ecologically responsible.

Latest market reaction and sentiment analysis

At the time of this announcement, NOVONIX’s share price (ASX: NVX) showed a slight uptick, reflecting market optimism regarding the potential cost reductions and sustainability benefits that the partnership could yield. Analysts noted a positive sentiment towards the collaboration, highlighting that investors are increasingly favoring companies that prioritize sustainable technologies. Given NOVONIX’s prominent role in the battery space, this move could help fortify its position as a leader in high-performance, sustainable battery materials.