Australian graphite developer Magnis Energy has signed a binding offtake deal with Tesla to supply battery anode materials for its electric vehicles (EVs) for a minimum three-year term beginning in February 2025.
The deal comes while automakers race to secure the supply of critical minerals as the world shifts to decarbonise and diversify global supply chains away from China, the world’s biggest producer of electric vehicle batteries.
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Australia is beefing up its supply of critical minerals to the global auto industry, with BHP, Syrah Resources, Liontown Resources and Piedmont Lithium having agreed to supply these minerals to Tesla.
Magnis will supply to Tesla a minimum of 17,500 terapascal of anode active material (AAM), used in the making of lithium ion batteries, going to up to 35,000 terapascal, from a yet-to-be-built facility on US soil.
The agreement is conditional 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, commencing production from the commercial AAM facility by 1 February 2025, and customer qualification.
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Technical aspects of producing AAM using Nachu graphite concentrate have been developed over a seven-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 chair Frank Poullas said, “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.”
