Magnis Energy Technologies has entered into a binding off-take agreement with Tesla for the supply of anode active materials (AAM) beginning in February 2025.
Under the deal, Tesla plans to purchase a minimum of 17,500 tonnes per annum (tpa) starting from February 2025, and the automaker has an option for a maximum of 35,000tpa for a minimum three-year term at a fixed price.
The agreement is contingent 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, beginning commercial AAM production by 1 February 2025, and customer qualification.
Meanwhile, the company said that with equipment orders started and recent hiring made, the construction of pilot plant facilities for both Nachu (Tanzania) graphite concentrate and AAM has begun.
“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 Chairman Frank Poullas said.
An ASX-listed company, Magnis describes itself as “a vertically integrated lithium-ion battery technology and materials company.”
Along with its graphite mining project in Tanzania, the company is part of the Imperium3 New York consortium of companies working to build a Gigawatt scale Lithium-ion battery manufacturing plant in Endicott, New York.
