Magnis Energy strikes AAM supply deal with Tesla
The Australian battery material supplier Magnis Energy has scored a binding purchase agreement with Tesla over anode-active material (AAM) for at least three years with the option to get more. Yet, while binding, the contract has a few conditions.
To start with, Tesla expects Magnis to supply 17,500 tons of anode-active material annually and can double the supply to 35,000 tons of AAM over the fixed term.
While the agreement is binding, it still depends on whether Magnis Energy succeeds in securing a permanent site in the US for a factory by 30 June 2023 to start pilot production a year later ahead of going full scale by 1 February 2025. Another condition of the agreement with Tesla is a fixed price, and there are, of course the company’s quality supplies.
The US site and local manufacturing are of course due to recent policies that require the majority of materials to be sourced in North America to remain eligible for EV subsidies. At the same time, the conditions also leave a back door for Tesla should they, for example find graphite at a better price in the meantime.
Magnis Energy has yet to find a site in the US and just said the search was underway. In fact, plans to produce in the US date back to last year, when Magnis hired Jones Lang Laselle to find a site.
For the actual material to be prepared for EV batteries, Magnis mentions the Nachu Graphite project it owns in Tanzania and processing assets in the United States. These include the company’s US-based subsidiary Imperium3 New York, Inc (“iM3NY”), which operates a Lithium-ion battery manufacturing plant in Endicott, New York. Magnis adds they had also produced AAM together with another technology partner, C4V LLC, in the USA.
Magnis 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 was founded in 2005 and has headquarters in New South Wales, Australia.