Novonix (ASX: NVX) Falls 22% as BNY Mellon Boosts Holding to 10%, Signalling Long-Term Confidence

Novonix (ASX: NVX) is fast becoming one of the most closely watched names on the ASX and increasingly, in the U.S. market too. This week, shares fell 22% as investors appeared to consolidate gains after a strong run, but beneath the surface, a significant development quietly strengthened the company’s long-term outlook. The Bank of New York Mellon Corporation, one of the world’s largest custodians, disclosed a substantial holding increase from 8% to 10%, now controlling around 84 million shares on behalf of institutional investors.

While this isn’t insider buying, it signals rising international interest in Novonix’s story, particularly from US investors gaining exposure through the ADR system. Such moves often reflect growing global confidence in a company’s trajectory and potential for future growth.

What are the Best Energy Storage ASX Stocks to invest in right now?

Check our buy/sell tips

Why Novonix’s Synthetic Graphite Could Be the Next Big Energy Play

What makes Novonix’s technology particularly compelling to investors is its focus on graphite, the primary active material used in lithium-ion battery anodes. Graphite accounts for more than 90% of the total active material in modern batteries, making it an essential component of the global energy storage supply chain.

Its importance lies in how it directly influences battery performance, including energy density, charging speed, cycle life, and overall safety. In other words, the quality and efficiency of the graphite used in a battery largely determine how well that battery performs.

By developing advanced, high-performance synthetic graphite tailored for electric vehicle and energy storage applications, Novonix is positioning itself at the heart of one of the fastest-growing industries in the world, a key reason global investors are paying closer attention to the company’s long-term potential.

Cutting Costs, Cutting Emissions: Novonix’s Next-Generation Graphite Technology Takes Shape

An important consideration for investors is how Novonix’s synthetic graphite production process differs from traditional methods. Conventional systems rely on chemical purification and batch furnaces, which are energy-intensive and costly to operate.

In contrast, Novonix uses proprietary induction furnaces that consume around 30% less energy, require fewer processing steps, and eliminate the need for chemical reagents, significantly reducing operating expenses. The company’s partnership with Harper International has also enabled the in-house design and development of graphitization furnaces, helping lower equipment and production costs.

Meanwhile, Novonix’s all-dry, zero-waste cathode synthesis study demonstrated approximately 30% lower capital intensity and 50% lower operating costs compared to conventional methods. Together, these advancements position Novonix with a strong cost advantage over imported graphite, particularly as new tariffs on Chinese graphite continue to increase the competitiveness of locally produced materials.