The Novonix Ltd (ASX: NVX) share price is having a tough time on Tuesday.
In morning trade, the battery materials and technology company's shares are down 10% to 58.5 cents.
Why is the Novonix share price being sold off?
The catalyst for today's selling has been shock news that the company's CEO has decided to step down.
According to the release, Dr. Chris Burns is stepping down as CEO at the end of the week on 24 January.
Though, he will continue to support Novonix in an advisory capacity, serving as special advisor to the board of directors. This is in order to provide continuity, support ongoing operations of the company, and ensure a smooth transition.
Often when a CEO leaves with such short notice, it is because a successor has already been lined up. However, that is not the case with Novonix, which appears to have sparked concerns. Especially at such an important juncture. The company plans to begin production from its Riverside in Tennessee facility this year.
Novonix advised that its board has commenced a search for a new CEO who will be based at its headquarters in Chattanooga. They want the candidate to have experience in manufacturing, operations and scale-up to lead it into the planned growth in synthetic graphite production over the coming years.
Commenting on his exit, Dr. Chris Burns, said:
I am incredibly proud of everything that NOVONIX has accomplished during my time as CEO. We have developed innovative technology, new products, and have gained significant support from the US Government, investors and customers as we have established ourselves as a leader in the battery materials sector in North America.
As we move towards commercial scale production at Riverside this year, it is a great opportunity for the Board to appoint a new CEO with the right skill set to lead the Company on the next phase of its journey. I look forward to working with the Board and management through this process to support the continued success of NOVONIX.
The company's CFO Robert Long has been appointed as interim CEO until a permanent CEO is found. He will work closely with the board to ensure a smooth transition and maintain momentum and focus on key strategic
Speaking about the news, Novonix Chairman, Admiral Robert J Natter, said:
The Board of Directors would like to thank Dr. Burns for his exceptional leadership and dedication in what has been a dynamic market environment. The Board has great confidence in Mr Long's ability to continue this strong leadership during the transition period.
The Novonix share price is now down 22% in 2025.
The post Novonix share price crashes 10% on shock news appeared first on The Motley Fool Australia.
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