Inner Mongolia is an important Chinese production hub for synthetic graphite due to its relatively low electricity unit price. Inner Mongolia hosts approximately 46% of China’s graphitization capacity.

Strict energy consumption control policy for high-energy consuming industries have been applied by Inner Mongolia in response to China’s 14th Five-Year Plan. The new controls have limited the production of synthetic graphite from existing producers in Inner Mongolia, as the supply of electricity to the region’s synthetic graphite graphitization plants decreased by 15-30% since April, according to Chinese industry research firm ICCSINO. The situation improved in May and June, but supply tightened again in July, with utilization rates falling by 10% in Ulanqab.

Besides potentially affecting the possibility of new projects getting government approval, Roskill says that this situation has led to a 70% increase in the price of active anode material (AAM) based on synthetic graphite.

Good news for NVX.

News article here

Phillips 66 has announced it has acquired 77 962 578 shares at approx. $2.64 per in Novonix, which representsd a 16% stake in Novonix.  

Phillips 66 is a leading global manufacturer of specialty coke, a key precursor in the production of batteries that power electric vehicles. 

The investment by Phillips 66 will support a capacity expansion of an additional 30,000 mt/year, which is expected to be completed by 2025.

This investment addresses one key concern regarding Novonix, which is the reliability and capability of sourcing coke feedstock under its ambitious expansion plans.  With the largest coke feedstock supplier invested, and with a board member, long term supply look a lot more secure. 

DISC - I HOLD. 

For those holders of Novonix and Tolga, I recommned you watch this video here

For those interested in Novonix (Synthetic) vs Tolga (Natural) as an investment.   I learnt a great deal from this video - all holders of Novonix and Tolga should watch....

https://www.youtube.com/watch?v=bHsLB9LhP6E&t=11s