Magnis Energy Technologies (ASX:MNS) reports it has signed an offtake agreement with American multinational automotive and clean energy Tesla (NASDAQ:TSLA).
The newly signed binding offtake agreement with Tesla will see Magnis deliver about 17,500 tonnes per annum (tpa) of anode active materials (AAM) to the automotive company beginning February 2025 at a fixed price for a minimum term of 3 years.
It is also reported that under the terms of the offtake agreement, 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, starting production from the commercial AAM facility by 1 February 2025, and customer qualification.
The company also notes the agreement contains a customer option to increase up to 35,000tpa, and that it will move forward starting ‘large-scale’ pilot plant development for both AAM and Nachu graphite concentrate immediately.
Addressing the agreement, Magnis Energy Technologies Chairman Frank Poullas says: “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.”
“We are really excited to bring our high performing AAM to market…”
Magnis reports the signing of the offtake agreement comes following the receiving of orders from Sukh Energy, an existing contracted customer of its Imperium3 New York (iM3NY) Lithium-ion Battery Plant located in Endicott, New York, as announced by the company earlier this month.
In addition, Magnis reports it has also halted trading on the Australian Securities Exchange (ASX). Securities will remain in trading halt until the earlier of the commencement of normal trading on 22 February 2023, or when the announcement is released to the market.
Magnis Energy Technologies is an ASX-listed vertically integrated lithium-ion battery technology and materials company with strategic assets, investments, and partnerships in the electrification supply chain. The company, together with its US-based technology partner C4V LLC, has produced ‘high-performance’ AAM for lithium-ion batteries utilising its ‘high purity’ graphite feedstock from its Nachu Graphite Project in Tanzania, in order to achieve its goal of enabling, supporting, and accelerating the mass adoption of electric mobility and renewable energy storage critical for the green energy transition.
Magnis’ US-based subsidiary company Imperium3 New York currently operates a gigawatt-scale lithium-ion battery manufacturing plant in Endicott, New York.
Images: Magnis Energy Technologies Ltd