The two companies have reached a technology development agreement that is planned to advance the production and commercialisation of the next generation of lithium-ion battery anode materials.

The deal is significant for Novonix because not only does it give Novonix added credibility in the US but also allows it to leverage off the power of Phillips66’s size and influence in the market.

However, the Novonix share price fell 4 per cent at the opening bell this morning adding to its continued volatility.

Novonix believes it is the only supplier in the US of large volumes of synthetic graphite, a key material in battery anodes. Novonix also has Professor Jeffrey Dahn as its chief scientific advisor, one of the leading researchers in the battery sector and someone with close links to Elon Musk’s electric vehicle company Tesla.

The agreement means the two companies would collaborate in development of intellectual property and sets out the conditions on how it would be shared.

Phillips66 executive Ann Oglesby said the agreement was a framework for the companies to work closely to accelerate the development of new materials.

Novonix chief executive Chris Burns said the two companies could plan to develop integral processes from manufacturing precursor materials to producing high-capacity, long-life synthetic graphite anode materials which would improve battery performance, lower costs and decrease the environmental impact.