PERTH (miningweekly.com) – A global consortium, in which ASX-listed Magnis Resources holds a major stake, has been awarded funding of $13.5-million from the state of New York to develop the region’s first lithium-ion gigafactory.
In May, Magnis entered into a joint manufacturing establishment agreement to develop a 15 GWh lithium-ion battery plant in the US, with Magnis to supply the anode materials and technologies for the plant, while the cathode materials and technology, the manufacturing processes to produce electrodes and battery cells will be handled by the consortium partners.
Magnis said on Thursday that the $13.5-million funding provided by the state of New York would go towards the Stage 1 production development of the gigafactory, which would see 3 GWh of capacity being ready in the second half of 2019 at a capital cost of $130-million.
Magnis chairperson Frank Poullas told shareholders that the funding was a significant milestone for the consortium, and for the company.
“To have the support of the governor and his government after an extensive due diligence process shows the true merits of this project. New York state accounts for approximately 10% of the gross domestic product (GDP) for the whole of the US, with an economy that has a larger GDP than countries, including Australia and South Korea.”
Poullas said on Thursday that the detailed engineering contract for the Stage 1 development was expected in the current quarter, with the groups already shortlisted having extensive experience in the lithium-ion battery industry.
Meanwhile, offtake discussions were nearing completion, with a high demand coming from the global market, including stationary storage and electric mobility.