Australian graphite developer Magnis Energy on Tuesday said it had signed a binding agreement with Tesla Inc to supply materials for battery anodes. The agreement was signed for a minimum period of three years, starting from February 2025.
Magnis has signed an offtake agreement for North American anode active material production with Tesla, beginning in February 2025 with fixed pricing. Key points:
- Offtake Agreement signed for the supply of Anode Active Materials (AAM)
- Magnis to supply a minimum of 17,500 tonnes per annum (tpa) of AAM beginning in February 2025 for a minimum term of 3 years at a fixed price
- The agreement contains a customer option to increase up to 35,000tpa
- Magnis to commence large scale pilot plant development for both AAM and Nachu graphite concentrate immediately
Details of the Agreement
Under the agreement, Tesla will purchase a minimum of 17,500tpa starting from February 2025 with a maximum of 35,000tpa for a minimum 3-year term at a fixed price. The agreement is conditional on Magnis securing a final location for its commercial AAM facility by June 30, 2023, producing AAM from a pilot plant by March 31, 2024, commencing production from the commercial AAM facility by February 1, 2025, and customer qualification.
The Company is in the process of selecting a United States location for the AAM facility.
The development of Pilot Plant facilities for both Nachu (Tanzania) Graphite concentrate and AAM has commenced with equipment orders initiated and new hires recently appointed.
Technical aspects of producing AAM using Nachu graphite concentrate have been developed over a 7-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.
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.”
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About the Author
Eva Fox joined Tesmanian in 2019 to cover breaking news as an automotive journalist. The main topics that she covers are clean energy and electric vehicles. As a journalist, Eva is specialized in Tesla and topics related to the work and development of the company.