Magnis Energy strikes anode active materials offtake deal with Tesla
Tesla has forecast a global shortage in key metal components used to make electric vehicle batteries due to underinvestment in the mining sector.
Magnis Energy Technologies (ASX: MNS) has secured a deal with automotive and clean energy company Tesla Inc for the supply of anode active materials (AAM) beginning in February 2025.
The fixed price contract will see Magnis supply a minimum 17,500 tonnes per annum up to a maximum 35,000tpa of AAM for an initial term of three years.
It is conditional on Magnis securing a final US location for its commercial AAM facility by 30 June and first production by February 2025; production of AAM from a pilot plant by 31 March 2024; and customer qualification.
Lithium-ion battery plant
Magnis is developing a lithium-ion battery AAM manufacturing plant in the US, utilising high quality and high purity natural graphite feedstock from its wholly-owned Nachu graphite project in Tanzania.
A bankable feasibility study update released in September confirmed the project’s viability to produce and supply high-purity graphite anode feedstock at a commercial scale.
Magnis has commenced the development of a pilot plant facility, initiating orders for key long-lead time equipment and appointed new hires.
Working in conjunction with technology partner C4V LLC, the plant will produce battery-grade materials which will enable Magnis to provide samples to prospective customers (including original equipment manufacturers and lithium battery cell makers) as part of their qualification processes.
Secure supply
The full-scale plant will deliver a secure supply of what is reported to be one of the world’s most sustainable, cost-competitive, high-quality and high-performance coated spherical graphite (CSPG) anode products for the growing US and European lithium-ion battery market.
“This facility will strengthen our vision of vertically integrating our strategic assets across the lithium-ion battery value chain, as well as meeting the growing supply deficit of critical materials for the broader market,” the company said.
Several locations within the US are currently being investigated, with plans to build the facility within the next three to five years.
The technical aspects of producing AAM using Nachu graphite concentrate have been developed over a seven year period at facilities based in New York using environmentally sustainable processes which do not require chemical or thermal purification.