Tesla makes graphite deal with Magnis
Magnis signs with Tesla for anode active material production Metal Tech News - February 22, 2023
Last updated 3/2/2023 at 5:49pm
Australia-based Magnis Energy Solutions has signed an agreement with Tesla for North American anode active material (AAM) production. This offtake agreement outlines Tesla's purchase of a substantial part of the output produced at the company's planned U.S.-based facility moving forward.
Magnis is a battery tech and materials company focused on scalable lithium-ion battery manufacturing and is positioning itself to join the only graphite industry supply chain outside of China capable of meeting both domestic and global demand.
Graphite is the primary anode material making up the bulk of lithium-ion batteries in electric vehicles, renewable energy storage, and mobile electronics. Its properties significantly improve battery capacity and high-rate performance.
The next steps for Magnis will be securing a United States location for the commercial AAM facility by June 2023 and development of large-scale pilot plant facilities for producing more of the current AAM supply using graphite concentrate from their Nachu graphite project in Tanzania by March 2024.
Magnis has already been producing a high-quality, high-performance lithium-ion battery anode product from graphite feedstock. This proprietary technique of producing AAM using Nachu graphite concentrate is an environmentally sustainable process eliminating the use of toxic acids in purification and utilizing existing commercial technology and facilities to ensure that the production is scaled up quickly.
The company's vision is to accelerate electric mobility and renewable energy storage critical for the green energy transition, a very attractive component in Tesla's search for greener solutions throughout the electric vehicle battery supply chain.
Magnis expects to be producing commercially by February 2025, and the deal stipulates Tesla would purchase a minimum of 17,500 tonnes per annum of AAM for a minimum of three years at a fixed price.
"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 commented on the deal.