Australian graphite developer Magnis Energy on Tuesday said it had signed a binding agreement with Tesla Inc to provide materials for battery anodes. The agreement was signed for a minimum period of three years, ranging from February 2025.
Magnis has signed an offtake agreement for North American anode energetic material production with Tesla, starting in February 2025 with fixed pricing. Key points:
- Offtake Agreement signed for the provision of Anode Energetic Materials (AAM)
- Magnis to provide a minimum of 17,500 tonnes each year (tpa) of AAM starting in February 2025 for a minimum term of three years at a hard and fast price
- The agreement comprises a customer option to extend as much as 35,000tpa
- Magnis to begin large scale pilot plant development for each AAM and Nachu graphite concentrate immediately
Details of the Agreement
Under the agreement, Tesla will purchase a minimum of 17,500tpa ranging from February 2025 with a maximum of 35,000tpa for a minimum 3-year term at a hard and fast price. The agreement is conditional on Magnis securing a final location for its industrial AAM facility by June 30, 2023, producing AAM from a pilot plant by March 31, 2024, commencing production from the industrial AAM facility by February 1, 2025, and customer qualification.
The Company is within the strategy of choosing a United States location for the AAM facility.
The event of Pilot Plant facilities for each Nachu (Tanzania) Graphite concentrate and AAM has commenced with equipment orders initiated and recent hires recently appointed.
Technical features of manufacturing AAM using Nachu graphite concentrate have been developed over a 7-year period at facilities based in Recent York. The materials have been developed with environmentally sustainable processes that don’t need any chemical or thermal purification.
Magnis Chairman Frank Poullas commented: “We’re really excited to bring our high performing AAM to market that requires no chemical or thermal purification throughout the entire process, which differentiates this sustainable material available in the market and provides great value to all parties.”
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