A recent deal between Magnis Energy and Tesla is a significant development in the 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.
The binding offtake deal will see Magnis supply battery anode materials to Tesla for a minimum of three years beginning February 2025.
Australia is increasing its supply of critical minerals to the global auto industry, with BHP group, Syrah Resources, Liontown Resources and Piedmont Lithium having agreed to supply these minerals to Tesla.
The company said it will supply a minimum of 17,500tpa of anode active material (AAM) to Tesla, used in the making of lithium ion batteries, with the potential of going up to 35,000tpa, from a facility in America that is yet to be built.
Magnis aims to secure a final location for its commercial AAM facility in America by 30 June, and aims to commence production by February 2025.
