PERTH (miningweekly.com) – Vertically integrated lithium-ion battery technology and materials company Magnis Energy Technologies has inked a binding offtake agreement with electric vehicle (EV) major Tesla.
Under the agreement, Magnis will supply a minimum of 17 500 t/y of active anode materials (AAM) to Tesla from a proposed facility in the US, starting in February 2025, for a minimum term of three years at a fixed price.
The agreement contains a customer option to increase the offtake to 35 000 t/y.
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 the end of March 2024, commencing production from the commercial AAM facility by the start of February 2025, and customer qualification.
Magnis told shareholders on Tuesday that the company is in the process of selecting a US location for its AAM facility.
“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,” said chairperson Frank Poullas.
He noted that technical aspects of producing AAM using graphite concentrate from the company’s Nachu project, in Tanzania, have been developed over a seven-year period at facilities based in New York. The materials have been developed with environmentally sustainable processes that do not need any chemical or thermal purification.
The development of pilot plant facilities for both Nachu graphite concentrate and AAM has started, with equipment orders initiated and new hires recently appointed.