Corporate Directory

Key Highlights

For the six months ended June 30, 2025

Scale Operations to Deliver Commercial Production

Secure Tier 1 Customers

Maintain Industry-Leading R&D Efforts for Battery Materials

Secure Financing to Scale Operations

Half-Year Results

During the six months ended June 30, 2025, NOVONIX had a loss of $20.1 million compared to a $28.7 million loss in the same period in 2024. Cash and cash equivalents was $24.8 million as of June 30, 2025, compared to $42.6 million as of December 31, 2024. Net assets over the six-month period ended June 30, 2025, increased $6.2 million to $143.8 million, principally due to the continued investment in machinery and equipment at Riverside. Total revenue for Battery Technology Solutions remains relatively constant at $2.8 million for the six months ended June 30, 2025, compared to the six months ended June 30, 2024, for both hardware and services sales.

NOVONIX Overview

NOVONIX Limited (ASX: NVX) is a leading battery technology company developing and scaling advanced materials and equipment critical to the lithium-ion battery supply chain. With a mission to enable cleaner energy solutions and reduce dependence on foreign supply, NOVONIX is commercializing U.S.-made synthetic graphite, a designated U.S. Critical Mineral, and supporting energy independence through domestic production. The Company’s patented technologies offer more energy-efficient and environmentally responsible alternatives to Chinese-dominated methods, to strengthen national security and drive local impact.

In the first half of 2025, NOVONIX continued the advancement toward commercial-scale production at its Riverside facility in Chattanooga, Tennessee, which is set to become North America’s first large-scale synthetic graphite manufacturing plant. With planned 20,000 tpa capacity fully allocated under long-term offtake agreements with Panasonic Energy, Stellantis, and PowerCo, the Company continued equipment installation and commissioning while supplying anode material samples to 13 customers and potential customers across EV, energy storage, and industrial markets. NOVONIX’s anode materials business remains central to securing U.S. supply chains and creating high-quality domestic manufacturing jobs.

NOVONIX also continued to advance its Battery Technology Solutions business, including progress toward commercializing its patented all-dry, zero-waste cathode synthesis process. These efforts further enhance the Company’s vertically integrated platform, enabling faster customer qualification, deeper engagement, and IP-driven growth across the global battery ecosystem.

Operational Structure at a Glance

NOVONIX is producing the materials and technologies that make lithium-ion batteries last longer, perform better, and serve the needs of the most demanding industries. Our synergistic operating structure, as depicted below, is integral to the company’s current business development and growth strategy.

NOVONIX Anode Materials

Global battery supply chains are facing heightened pressure from shifting trade policies, export controls, and escalating demand for critical minerals. China’s restrictions on graphite exports have amplified concerns around the security of supply for battery-grade materials. At the same time, recent policy developments and government policy in the United States, are accelerating the push to localize the battery materials ecosystem and reduce reliance on foreign sources.

The 45X production tax credit directly incentivizes domestic production of batteries and battery components, including synthetic graphite, while requiring material inputs to be free from ties to Prohibited Foreign Entities (PFE). As a 100% domestic manufacturer with no ties to PFEs, NOVONIX qualifies under these provisions without impacting any of its existing credits or offtake arrangements. With binding supply agreements in place with three Tier 1 battery makers and Phillips 66 Company as its largest shareholder, NOVONIX is well positioned to meet growing demand for compliant, high-performance anode materials and to play a leading role in strengthening North America’s energy security.

Our Riverside facility is poised to become the first large-scale synthetic graphite production site in North America, with its 20,000 tpa capacity fully allocated through long-term offtake agreements with Panasonic Energy, Stellantis, and PowerCo. These partnerships, alongside continued facility build-out and customer product qualification, reinforce our role as a leading provider of strategic critical minerals which strengthens the domestic battery materials supply chain.

Figure 1 *Agreements require final product qualification.

In the first two quarters of 2025, the Company supplied advanced samples of synthetic graphite material to 13 different customers and potential customers for their battery, energy storage, and industrial applications. In June 2023, the Company and LG Energy Solution ("LGES") entered into a joint development agreement ("JDA") to develop synthetic graphite anode material, upon successful development of which the parties intended to enter into a purchase agreement. On

July 1, 2025, the JDA formally expired in accordance with its terms. However, the Company continues to actively work with LGES to jointly develop materials to LGES' specifications.

In the second quarter of 2025, the Company continued to progress equipment installation and commissioning at Riverside. This included installation of graphitization furnaces and finishing systems as well as raw material processing and micronization equipment for our initial production line. We now have a total of four furnaces fully installed at Riverside and completed installation of substantially all required mass production equipment for our lead customer, Panasonic.

U.S. tariffs on Chinese materials, including those announced by Commerce this year, as discussed below, are expected to further support the Company’s competitive position. However, tariffs may also affect the cost and timing of key construction inputs. The full impact of broader macroeconomic conditions is currently difficult to quantify. We will continue to closely monitor key macroeconomic trends, ongoing supply chain issues, and the impacts of tariffs and will provide updated timing expectations for the Company’s key activities as we are able.

Executed Purchase and Sale Agreement for Enterprise South Land

To support growing customer demand, NOVONIX is continuing to advance plans for a second large-scale synthetic graphite facility in Chattanooga, Tennessee. In April, the Company signed a definitive agreement to purchase a 182-acre site in the Enterprise South Industrial Park, following

Figure 2 Proposed NOVONIX Enterprise South rendering located on 182 acres in the Enterprise South Industrial Park in Chattanooga, Tennessee.

unanimous approvals from the City of Chattanooga, Hamilton County, and the Chattanooga Industrial Development Board.

Upon the satisfaction of certain conditions, the land will be acquired for approximately US$5 million. This new facility is expected to reach an initial production capacity of 31,500 tpa and is anticipated to create 450 to 500 full-time jobs. With this initial capacity at Enterprise South and its existing Riverside facility, which is scaling up to 20,000 tpa, NOVONIX will have total production capacity of over 50,000 tpa in Chattanooga.

The Company is expected to receive approximately US$54 million in total net tax and other benefits from the City of Chattanooga and Hamilton County over a 15-year period, contingent upon meeting specific conditions outlined in the agreement. The Company does not intend to close on the purchase of the Enterprise South land until such time as the conditions precedent related to the conditionally committed US$754 million loan ($692 million in principal and $62.8 million in capitalized interest) from the Loan Programs Office of the U.S. Department of Energy have been satisfied.

Technology License Agreement with Harper International

In January, NOVONIX entered into an exclusive license agreement with its long-time technology partner, Harper International Corporation (“Harper”), for the rights and use of its continuous, induction-based graphitization furnace technology.

In December 2020, NOVONIX and Harper entered into an exclusive use agreement under which the parties agreed to develop innovative graphitization furnace technology to be used to produce synthetic graphite anode material for the lithium-ion battery sector. This partnership provided for commitments from NOVONIX to purchase from Harper, and from Harper to develop and exclusively supply NOVONIX with proprietary systems for thermal processing material for the battery anode market.

The license agreement expands upon the relationship and provides NOVONIX the right to an exclusive license to Harper’s technology on which its continuous graphitization furnaces operate. No later than December 2025, NOVONIX must make an initial payment to gain a license to design and develop graphitization furnace technology for its internal use. NOVONIX will have the exclusive license to use the technology to further develop the furnaces used for the thermal production of graphite material for use in the battery anode market. Upon equipment meeting certain performance objectives, and NOVONIX’s payment of additional licensing fees, the license will expand to include NOVONIX’s right to build equipment using the licensed technology, either

internally or through other permitted sublicensees.

U.S. Department of Commerce Announces Preliminary Determinations

In the second quarter, the U.S Department of Commerce announced its preliminary affirmative determination to impose up to 721% of countervailing duty (“CVD”) tariffs on synthetic and natural graphite anode material from China. In February, the International Trade Commission (“ITC”) announced its preliminary determination asserting that China suppressed the establishment of the graphite industry in the United States (and elsewhere) by exporting artificially cheap graphite which is a key component of lithium-ion batteries.

In July 2025, Commerce announced its intention to impose AD tariffs of 93.5% on anode active material (“AAM”), which includes synthetic and natural graphite imports from China. The effective tariff rate for AAM is now 160%, which includes the previously announced CVD tariffs of 11.5% placed by Commerce in May, President Trump’s blanket 30% tariffs on goods from China, and 25% Section 301 tariffs implemented by USTR last year. This decision underscores the strategic importance of building a domestic supply chain for critical minerals, including synthetic graphite, in North America. It affirms our business strategy as well as the diversification strategy of our customers to source critical battery materials and components locally. NOVONIX, with the most advanced synthetic graphite production facility in North America, will be increasing significantly the United States production of an essential strategic mineral while strengthening American manufacturing, and creating high-quality jobs locally.

The AD investigation determines whether the graphite is being sold at less than fair value (“dumped”), while the CVD investigation previously announced on May 1, 2025, determines whether the Chinese government is subsidizing the production and supply of graphite AAM to the United States. The additional AD tariff announced by Commerce in July will now stack onto the previously announced CVD tariffs. The final determinations for both the AD and CVD investigations are expected to be issued around December 5, 2025.

NOVONIX Battery Technology Solutions

NOVONIX Battery Technology Solutions (“BTS”), based in Nova Scotia, Canada, is the Company’s hub for research, development, and testing across anode and cathode materials, cell prototyping, and precision battery testing hardware. Founded in 2013 by Dr. Chris Burns and researchers from Dalhousie University, BTS was acquired by NOVONIX in 2017. The Company maintains an exclusive research partnership with Dr. Mark Obrovac, a recognized leader in battery materials

innovation, under which NOVONIX holds full ownership of resulting intellectual property with no ongoing obligations to Dalhousie University.

BTS plays a core role in the advancement of NOVONIX’s proprietary technologies, including its all-dry, zero-waste cathode synthesis process. The team supports internal development and external customers through a range of services, including cell design, materials prototyping, performance testing, and evaluation protocols. These capabilities are enabled by NOVONIX’s internal battery pilot line and cutting-edge infrastructure, including its proprietary Ultra-High Precision Coulometry (UHPC) systems.

NOVONIX’s UHPC systems are widely used by leading cell makers and OEMs for their unmatched accuracy in measuring battery degradation and performance, with adoption by 80% of the top Chinese cell manufacturers and over 50% of global automotive OEMs. In 2024, NOVONIX partnered with Voltaiq to integrate UHPC systems with advanced analytics and machine learning tools to enhance battery quality control and data insights. Additionally, BTS now offers Gamry Instruments as part of integrated UHPC platforms, expanding the scope of electrochemical testing capabilities for customers seeking deeper insight into materials behavior and device performance.

As the global battery industry faces constraints in infrastructure, expertise, and development timelines, BTS provides a vital resource for manufacturers and developers seeking to accelerate innovation and reduce risk. With a highly specialized team and vertically integrated solutions across anode, cathode, and testing technologies, BTS remains a cornerstone of NOVONIX’s strategy to bring next-generation battery materials to market.

Patent Granted: Method For Making Low Surface Area Alloy Particulate with High Silicon Content for Silicon Alloy Anode Material

During the quarter, the U.S. Patent & Trademark Office granted to BTS a patent for its low surface area silicon alloy materials for possible use as anode active materials in lithium-ion battery applications (US 12,257,632 B2). This patent, developed through our partnership with Dr. Mark Obrovac at Dalhousie University, describes the process to generate battery anode alloy powders of high silicon content, relatively low surface area, and relatively large particle size. These attributes are desirable for stable, energy dense anode electrodes with the possibility of improving battery lifetime without sacrificing performance.

This innovation further demonstrates NOVONIX’s commitment to developing innovative material technologies with the potential of enabling long range EVs for the North American lithium-ion battery sector.

Cathode Materials

In the first half of 2025, NOVONIX Cathode Materials continued advancing its patented all-dry, zero-waste cathode synthesis technology, which offers a more sustainable way to produce high-performance battery materials.

NOVONIX sent first- and second-round cathode material samples to several Tier-1 battery manufacturers and is progressing discussions with OEMs and industry partners. With a foundational patent secured, the focus remains on scaling and commercialization.

Partnerships with CBMM and ICoNiChem

NOVONIX completed the first year of its joint development work with CBMM, the global leader in niobium products, to enhance nickel-based cathode materials using NOVONIX’s dry-process technology. The project included material testing and full-cell validation, with the goal of improving performance and reducing costs. Success could lead to future integration of CBMM’s products into NOVONIX’s production.

In October 2024, NOVONIX signed a Joint Collaboration Agreement with ICoNiChem to develop nickel-based cathode materials using recycled metals. The two-year, CAD $515,686 project is supported by funding from National Research Council of Canada Industrial Research Assistance Program and Innovate UK. The goal is to further improve the sustainability of NOVONIX’s cathode technology by incorporating recycled feedstocks such as cobalt and nickel compounds. To date, NOVONIX has qualified several raw materials generated by ICoNiChem using its all-dry, zero-waste process to produce mid- and high-nickel grades of NMC powder. This cathode powder is currently being evaluated in full lithium-ion battery cells. Commercial agreements may follow upon successful milestones or project completion.

Director’s Report

For the Half-Year Ended June 30, 2025

Your directors present their report on NOVONIX Limited (referred to hereafter as the ‘consolidated entity’ or the Company) for the half-year ended June 30, 2025.

Directors

The following persons were directors of NOVONIX Limited during the whole of the half-year and up to the date of this report, unless otherwise stated:

Principal Activities

During the six-month period, the Company’s principal activities included investing in scalability efforts to increase production capacity of anode materials, entering into customer offtake agreements for anode materials, progressing toward commercialization of its cathode technology, and expanding cell assembly and testing capabilities.

Review Of Operations

The loss for the consolidated entity after providing for income tax amounted to $20,135,547 (2024: $28,710,957).

Information on the operations and financial position of the Company and its business strategies and prospects are set out in the review of operations and activities on pages 3-11 of this interim report.

Significant Changes in the State of Affairs

There were no significant changes in the state of affairs of the consolidated entity during the financial half-year.

Subsequent Events Occurring after the Balance Sheet Date

Entered into Funding Agreement for up to US$100 Million of Convertible Debentures

On July 24, 2025, the Company agreed to issue up to US$100,000,000 of unsecured convertible debentures to YA II PN, Ltd, an affiliate of Yorkville Advisors Global, LP (“Yorkville”), under the terms of a multi-tranche funding agreement (“Funding Agreement”).

Under the Funding Agreement, Yorkville has agreed to provide NOVONIX with funding of up to US$57,000,000, with an additional funding tranche of up to US$38,000,000, able to be drawn down by mutual agreement between the parties, in exchange for the issue of up to US$100,000,000 of unsecured convertible debentures to Yorkville.

In exchange, NOVONIX has agreed to issue to Yorkville debentures that are convertible into fully paid ordinary shares in NOVONIX (“Convertible Debentures”), at a 5% discount price to the aggregate face value of the Convertible Debentures (being US$100,000,000), on the terms set out in the Funding Agreement.

The funding will be provided, and Convertible Debentures issued, progressively over a series of tranches, as follows:

Subject to NOVONIX receiving shareholder approval at the EGM, NOVONIX will issue an additional tranche of 40,000,000 Convertible Debentures to Yorkville (“Additional Drawdown Convertible Debentures”). Once issued, the parties can agree to draw down an additional tranche of funding, of an amount to be mutually agreed between the parties up to US$38,000,000, bringing total funding up to US$95,000,000 if all Convertible Debentures are issued and fully drawn. The parties have the option to agree to draw down the full amount of the additional tranche, or any lesser amount, or may not agree to draw down under the additional tranche at all.

No other matters or circumstances have arisen since June 30, 2025, that have significantly affected, or may significantly affect, the operations of the consolidated entity, the results of those operations or the state of affairs of the consolidated entity in future financial years.

Auditor’s Review Report

The attached half-year financial report for the period ended June 30, 2025, contains an independent auditor’s review report which highlights the existence of a material uncertainty that may cast significant doubt about the Group’s ability to continue as a going concern. For further information, refer to Note 1 to the financial statements, together with the auditor’s review report.

Auditor’s Independence Declaration

A copy of the auditor’s independence declaration as required under section 307C of the Corporations Act 2001 is set out on the following page.

This report is made in accordance with a resolution of directors, pursuant to section 306(3)(a) of the Corporations Act 2001.

Ron Edmonds

Chairman

August 22, 2025

Brisbane

Auditor’s Independence Declaration

As lead auditor for the review of NOVONIX Limited for the half-year ended 30 June 2025, I declare that to the best of my knowledge and belief, there have been:

This declaration is in respect of NOVONIX Limited and the entities it controlled during the period.

NOVONIX LIMITED

ABN 54 157 690 830

HALF-YEAR FINANCIAL REPORT

FOR THE PERIOD ENDED JUNE 30, 2025

Contents

NOVONIX LIMITED

ABN 54 157 690 830

Half-year financial report

General information

The financial statements are consolidated financial statements for the Group consisting of NOVONIX Limited and its subsidiaries.

The financial statements are presented in US dollars.

NOVONIX Limited is a Group limited by shares, incorporated and domiciled in Australia.

All press releases, financial reports and other information are available at our website: www.novonixgroup.com.

A description of the nature of the Group's operations and its principal activities are included in the directors' report, which is not part of the financial statements.

The financial statements were authorised for issue, in accordance with a resolution of directors, on August 22, 2025.

Consolidated Statement of Profit or Loss and Other Comprehensive Income for the Half-Year Ended June 30, 2025

The above consolidated statement of profit or loss and other comprehensive income should be read in conjunction with the accompanying notes.

Consolidated Balance Sheet as at June 30, 2025

Consolidated Balance Sheet at June 30, 2025 (Continued)

The above consolidated balance sheet should be read in conjunction with the accompanying notes.

Consolidated Statement of Changes in Equity

for the Half-Year Ended June 30, 2025

The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes.

Consolidated Statement of Cash Flows

for the Half-Year Ended June 30, 2025

The above consolidated statement of cash flows should be read in conjunction with the accompanying notes.

Notes to the Consolidated Financial Statements

for the Half-Year Ended June 30, 2025

Note 1 Basis of preparation

This condensed consolidated interim financial report for the half-year reporting period ended June 30, 2025 has been prepared in accordance with Australian Accounting Standard 134 Interim Financial Reporting and the Corporations Act 2001. These financial statements also comply with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”), as applicable to interim financial reporting.

This condensed consolidated interim financial report does not include all the notes normally included in an annual financial report. Accordingly, this report is to be read in conjunction with the Annual Report for the period ended December 31, 2024 and any public announcements made by the Group during the interim reporting period in accordance with the continuous disclosure requirements of the Corporations Act 2001.

The principal accounting policies adopted in the preparation of the financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

The financial report has been prepared on a going concern basis, which contemplates continuity of normal business activities and the realisation of assets and settlement of liabilities in the normal course of business.

The Company incurred a net loss of $20,135,547 (June 30, 2024: $28,710,957) and net operating cash outflows of $22,258,440 (June 30, 2024: $22,162,213) for the half-year ended June 30, 2025. As of June 30, 2025, the Company has a cash balance of $24,820,758 (December 31, 2024: $42,557,621) and net current liabilities of $3,838,792 (net current asset as of December 31, 2024: $11,055,453).

Notes to the Consolidated Financial Statements

for the Half-Year Ended June 30, 2025

Note 1 Basis of preparation (continued)

The net loss and cash outflows incurred during the period principally relate to the Company continuing to build-out the Riverside facility in Chattanooga, Tennessee, with mass production starting in 2026 for our lead customer, Panasonic. This will involve significant capital expenditure to scale operations in line with customer offtake agreements, as well as current and future customer demand. The funding of these expansionary activities will require additional funding beyond the existing cash balance as of June 30, 2025, and forecasted customer inflows, in the twelve months from the date of approval of these financial statements. These conditions give rise to a material uncertainty which may cast significant doubt over the Company’s ability to continue as a going concern. Should the Company be unable to continue as a going concern, it may be unable to realize its assets and discharge its liabilities in the normal course of business, and at amounts stated in the financial report.

The ability of the Company to continue as a going concern is principally dependent upon one or more of the following:

The directors believe that the going concern basis of preparation is appropriate as the Company has a strong history of being able to raise capital from debt and equity sources, including through the issue of:

Notes to the Consolidated Financial Statements

for the Half-Year Ended June 30, 2025

Note 1 Basis of preparation (continued)

The Company is continuing to actively engage with strategic partners, customers and investors to source additional funding to support the Company’s growth and fund the planned expansionary activities.

The Company will continue to claim balances against the $100 million grant from the U.S. Department of Energy ("DOE") Office of Manufacturing & Energy Supply Chains ("MESC"). During the half year ended June 30, 2025, the Company submitted $23.1 million in reimbursement requests to the DOE Office of MESC for investments made at its Riverside facility in Chattanooga, Tennessee, received $7.9 million in reimbursement receipts during the six months ended June 30, 2025, and has received $27.1 million in reimbursement receipts from initial award of the Grant through June 30, 2025. The Company has $15.2 million that has been submitted for reimbursement from MESC related to the three months ended June 30, 2025, but has not yet been paid. As of June 30, 2025, the remaining balance to be claimed from MESC is $57.7 million.

In addition, in April 2024, the Company was selected by the Qualifying Advanced Energy Project Allocation Program (the “48C program”) to receive a US$103 million 48C tax credit under the 48C program, to support production of critical battery materials from its Riverside facility in Chattanooga, Tennessee. No funds have been claimed against the 48C tax credit mainly as the qualifying asset has not been placed in service as of June 30, 2025, and to the date of issuance of the interim financial statements.

This financial report does not include any adjustments relating to the recoverability and classification of recorded asset amounts or the amounts or classification of liabilities and appropriate disclosures that may be necessary should the Company be unable to continue as a going concern.

Historical cost convention

The financial statements have been prepared under the historical cost convention, except for, where applicable, the revaluation of available-for-sale financial assets, financial assets and liabilities at fair value through profit or loss, certain classes of property, plant and equipment and derivative financial instruments.

Notes to the Consolidated Financial Statements

for the Half-Year Ended June 30, 2025

Note 1 Basis of preparation (continued)

There were no new, revised or amended standards adopted by the Group issued by the International Accounting Standards Board that are mandatory for the current reporting period.

There were no new, revised or amended accounting standards or interpretations not yet adopted by the Group for the current reporting period that are expected to have a material impact on the Group.

The preparation of the financial statements requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Group’s accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements were set out in the Annual Report for the period ended December 31, 2024. Except as noted in Note 5, no changes in critical accounting estimates were made during the six-month period ended June 30, 2025.

Notes to the Consolidated Financial Statements

for the Half-Year Ended June 30, 2025

Note 2 Segment reporting

The Group has identified its operating segments based on the internal reports that are reviewed and used by the Executive Key Management Personnel (Chief Operating Decision Makers or “CODMs”) in assessing performance and determining the allocation of resources. The Group is managed primarily on an operational basis. Operating segments are determined on the basis of financial information reported to the Board.

The CODMs have identified three operating segments being Battery Materials, Battery Technology, and Graphite Exploration. The Battery Materials segment develops and manufactures battery anode materials, and the Battery Technology segment develops battery cell testing equipment, performs consulting services and carries out research and development in battery development (inclusive of cathode technology). The Graphite Exploration segment involves exploration and evaluation activity, as well as maintenance and potential future development of the Mt Dromedary natural graphite deposit.

Basis of accounting for purposes of reporting by operating segments

Unless stated otherwise, all amounts reported to the CODMs, are determined in accordance with accounting policies that are consistent with those adopted in the annual financial statements of the Group.

Where an asset is used across multiple segments, the asset is allocated to the segment that receives the majority of the economic value from the asset. In most instances, segment assets are clearly identifiable on the basis of their nature and physical location.

Liabilities are allocated to segments where there is a direct nexus between the incurrence of the liability and the operations of the segment.

The following items for revenue, expenses, assets, and liabilities are not allocated to operating segments as they are not considered part of the core operations of any segment:

Notes to the Consolidated Financial Statements

for the Half-Year Ended June 30, 2025

Note 2 Segment reporting (continued)

Notes to the Consolidated Financial Statements

for the Half-Year Ended June 30, 2025

Note 2 Segment reporting (continued)

Notes to the Consolidated Financial Statements

for the Half-Year Ended June 30, 2025

Note 2 Segment reporting (continued)

Geographical Segments

For the purposes of segment reporting, all segment activities relating to Graphite Exploration are carried out in Australia and all segment activities relating to Battery Materials and Battery Technology are conducted in North America.

Note 3 Current assets – Other assets

The reserves are funds deposited with the Lender for capital expenditure, insurance, and tax as additional collateral for the loan obtained in relation to the purchase of the Riverside facility in Chattanooga, Tennessee. The reserves will be released when the loan conditions are satisfied, which is expected to be within 12 months from the balance sheet date.

Notes to the Consolidated Financial Statements

for the Half-Year Ended June 30, 2025

Note 4 Non-current assets – Property, plant and equipment

Notes to the Consolidated Financial Statements

for the Half-Year Ended June 30, 2025

Note 4 Non-current assets – Property, plant and equipment (continued)

During the half-year ended June 30, 2025, the Group continued to invest to meet its production capacity plans at its Riverside facility through the purchase of additional furnace systems and other production equipment.

Capital Commitments

Total commitments in respect of capital expenditure as of June 30, 2025, are $16,645,756 (December 31, 2024: $52,968,336).

Notes to the Consolidated Financial Statements

for the Half-Year Ended June 30, 2025

Note 5 Non-current assets – Intangible assets

Intangible assets, other than goodwill, have finite useful lives. The current amortisation charges for intangible assets are included under depreciation and amortisation expense in the consolidated statement of profit or loss and other comprehensive income. Goodwill has an indefinite useful life.

The Company performs its annual impairment testing on June 30 each year. For the purposes of impairment testing, the cash generating unit has been defined as the business to which the goodwill relates where individual cash flows can be ascertained for the purposes of discounting future cash flows.

For the 2025 annual impairment test, the recoverable amount of the Cash-Generating Unit (“CGU”) was determined using a ‘Fair Value Less Costs to Sell’ (“FVLCS”) approach, based on the current Riverside Project Plan, which assumes commercial offtake will commence in 2026.

The FVLCS calculation involves significant estimates and assumptions, including projected volumes, growth rates, and gross margins, which are used to estimate future cash flows. This valuation is classified as Level 3 in the fair value hierarchy due to the use of unobservable inputs.

The present value of expected cash flows was determined by applying a discount rate that reflects the risks specific to the CGU.

Notes to the Consolidated Financial Statements

for the Half-Year Ended June 30, 2025

Note 5 Non-current assets – Intangible assets (continued)

As of June 30, 2025, the recoverable amount of the NOVONIX Anode Materials CGU (“NAM CGU”) exceeded its carrying amount; therefore, no impairment was recognized.

Cash flow projections used in the valuation are based on financial budgets approved by management and the Board, covering a 10-year period. Management determined this horizon to be appropriate to reflect the Company’s binding customer contracts and the anticipated production ramp-up to full capacity by 2028, at which point operations are expected to normalize.

Key assumptions used in the FVLCS calculation include:

Management acknowledges that the estimates and assumptions used in these calculations are subject to change but does not believe that reasonably possible changes in any one key assumption would result in the carrying amount of the NAM CGU exceeding its recoverable amount.

Aside from the above noted change in revenue sales price expectations supported by the recent US DOC preliminary rulings, all other key assumptions disclosed above are consistent with the prior year.

Notes to the Consolidated Financial Statements

for the Half-Year Ended June 30, 2025

Note 6 Borrowings

Notes to the Consolidated Financial Statements

for the Half-Year Ended June 30, 2025

Note 7 Unsecured convertible loan notes and derivative financial instruments

On June 21, 2023, the Group issued 45,221,586 convertible loan notes, with a face value of AUD$1.00 per note, a coupon rate of 4%, and a maturity date of June 7, 2028 for proceeds of US$30 million to LGES. The notes have a conversion price of AUD$1.60 per ordinary share. The convertible notes will mandatorily convert into ordinary shares upon acceptance of the first purchase order under the purchase agreement with LGES, although LGES may elect to convert some or all the notes prior to such time. No interest would be payable on the notes in these circumstances.

The convertible notes may be redeemed or converted (at the election of LGES) on the maturity date, in which case interest is payable in cash (in respect of a redemption) or "in-kind" (in the case of conversion).

As the Company does not have the right to defer settlement of the liability, it has appropriately classified its convertible notes and associated derivative financial instruments as current, in accordance with the amendments to IAS 1.

The convertible notes are presented in the consolidated balance sheet as follows:

* Interest expense is calculated by applying the effective interest rate of 6.56% to the liability component.

Notes to the Consolidated Financial Statements

for the Half-Year Ended June 30, 2025

Note 7 Unsecured convertible loan notes and derivative financial instruments (continued)

The fair value of the conversion option (derivative financial liability) was determined using the Monte Carlo Simulation methodology. The derivative financial liability is carried at fair value at each reporting date, with gains or losses being recognized in the consolidated statement of profit or loss and other comprehensive income. The remainder of the proceeds were allocated to borrowings with the liability recognized at amortized cost until extinguished on conversion or maturity of the notes. Interest is applied using the effective interest rate.

Fair Value Hierarchy

The derivative financial liability is classified as a Level 3 fair value in the fair value hierarchy as one or more of the significant inputs is not based on observable market data.

Notes to the Consolidated Financial Statements

for the Half-Year Ended June 30, 2025

Note 8 Contract liabilities

During the 2021 financial year, the Group received grant funds of USD$3,000,000 from the Department of Economic and Community Development in the State of Tennessee, USA. The grant funds are conditional upon the Group creating, filling and maintaining 290 jobs in the State of Tennessee.

The grant becomes fully earned if 90% of the performance target is achieved by March 2026 and is repayable in full if a minimum of 50% of the performance target is not achieved by March 2026. The grant is proportionately repayable between 50% and 90% of the performance target being achieved.

Accordingly, as of June 30, 2025, the full amount of the grant has been deferred and classed as a contract liability and will either be released to income (in full or proportionately) or repayable (in full or proportionately) depending on the performance target achieved by March 2026. Income has not been recognized at June 30, 2025, as the Company cannot reliably measure compliance of the conditions attaching to the grant with “reasonable assurance” to determine the grant has become receivable.

Notes to the Consolidated Financial Statements

for the Half-Year Ended June 30, 2025

Note 9 Contributed equity

During the half-year ended June 30, 2025, 922,047 ordinary shares were issued on the exercise of vested performance rights. Of these shares, 21,064 were issued to Rashda Buttar, 25,708 were issued to Darcy MacDougald and the balance of shares were issued to employees who are not considered Key Management Personnel.

Notes to the Consolidated Financial Statements

for the Half-Year Ended June 30, 2025

Note 9 Contributed equity (continued)

During the half-year ended June 30, 2025, 150,000 options were exercised at $0.50 per share using the cashless exercise mechanism results in the issue of 43,825 ordinary shares.

During the half-year ended June 30, 2025, 632,890 ordinary shares were issued to Directors on the vesting of share rights.

During the half-year ended June 30, 2025, 53,887,112 ordinary shares were issued to eligible shareholders under a Share Purchase Plan at $0.60 per share.
 

During the half-year ended June 30, 2025, 12,771,392 ordinary shares were issued Philips 66 Company, following shareholder approval, at $0.60 per share.

The Group’s objectives when managing capital are to safeguard its ability to continue as a going concern, so that it can continue to provide returns for shareholders, benefits for other stakeholders and to maintain an optimal capital structure to reduce the cost of capital.

The capital structure of the Group includes equity attributable to equity holders, comprising of issued capital, reserves and accumulated losses. To maintain or adjust the capital structure, the Group may issue new shares, sell assets to reduce debt or adjust the level of activities undertaken by the Group.

The Group monitors capital based on cash flow requirements for operational and capital expenditure. The Group will continue to use capital market issues to satisfy anticipated funding requirements. The Group has no externally imposed capital requirements. The Group’s strategy for capital risk management is unchanged from prior years.

Notes to the Consolidated Financial Statements

for the Half-Year Ended June 30, 2025

Note 10 Earnings per share

Notes to the Consolidated Financial Statements

for the Half-Year Ended June 30, 2025

Note 11 Related party transactions

During the half-year ended June 30, 2025, the Group has not entered into any material transactions with related parties.

Note 12 Events occurring after the balance sheet date

Entered into Funding Agreement for up to US$100 Million of Convertible Debentures

Since the end of the half-year period, the Company has agreed to issue up to US$100,000,000 of unsecured convertible debentures to YA II PN, Ltd, an affiliate of Yorkville Advisors Global, LP (“Yorkville”), under the terms of a multi-tranche funding agreement (“Funding Agreement”).

Under the Funding Agreement, Yorkville has agreed to provide NOVONIX with funding of up to US$57,000,000, with an additional funding tranche of up to US$38,000,000, able to be drawn down by mutual agreement between the parties, in exchange for the issue of up to US$100,000,000 of unsecured convertible debentures to Yorkville.

In exchange, NOVONIX has agreed to issue to Yorkville debentures that are convertible into fully paid ordinary shares in NOVONIX (“Convertible Debentures”), at a 5% discount price to the aggregate face value of the Convertible Debentures (being US$100,000,000), on the terms set out in the Funding Agreement.

The funding will be provided, and Convertible Debentures issued, progressively over a series of tranches, as follows:

Notes to the Consolidated Financial Statements

for the Half-Year Ended June 30, 2025

Note 12 Events occurring after the balance sheet date (continued)

No other matters or circumstances have arisen since June 30, 2025, that have significantly affected, or may significantly affect, the operations of the Group, the results of those operations or the state of affairs of the Group in future financial years.

Directors’ Declaration

In the directors' opinion: