Magnis inks offtake with Tesla for the supply of anode active material
(Kitco News) - Magnis Energy Technologies (ASX: MNS; OTCQX: MNSEF) said today that it has entered into a binding offtake agreement with Tesla, Inc. for the supply of anode active material (AAM) beginning in February 2025 with fixed pricing.
According to a company press release, under the agreement Tesla will purchase a minimum of 17,500tpa starting from February 2025 with a maximum of 35,000tpa for a minimum 3-year term at a fixed price.
“The agreement is conditional on Magnis securing a final location for its commercial AAM facility by 30 June 2023, producing AAM from a pilot plant by 31 March 2024, commencing production from the commercial AAM facility by 1 February 2025, and customer qualification,” it said.
The company noted it is in the process of selecting a United States location for the AAM facility, adding that the development of pilot plant facilities for both Nachu (Tanzania) graphite concentrate and AAM has commenced with equipment orders initiated and new hires recently appointed.
Chairman Frank Poullas commented, “We are really excited to bring our high performing AAM to market that requires no chemical or thermal purification throughout the whole process, which differentiates this sustainable material in the market and provides great value to all parties.”
Magnis Energy Technologies is a vertically integrated lithium-ion battery technology and materials company in the lithium-ion battery supply chain. The company's US based subsidiary operates a Gigawatt scale lithium-ion battery manufacturing plant in Endicott, New York.
Magnis together with their US based technology partner, C4V LLC has produced high-performance active anode materials for lithium-ion batteries utilizing Magnis’ high purity graphite feedstock from their Nachu graphite project in Tanzania.