Australia's Magnis in deal with Tesla to supply graphite for electric vehicle batteries (updated)

Ryzon Materials

20/02/2023 23:14

(Adds background)
       Feb 21 (Reuters) - Australia's graphite developer Magnis
Energy  MNS.AX  on Tuesday said it has signed a binding offtake
deal with Tesla Inc  TSLA.O  to supply battery anode materials
for a minimum three-year term beginning 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.
        Australia is beefing up its supply of critical minerals
to the global auto industry, with BHP group  BHP.AX , Syrah
Resources  SYR.AX , 
    Liontown Resources
      LTR.AX  and Piedmont Lithium  PLL.AX  having agreed to
supply these minerals to Tesla. 
  
    The company said it 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
facility in the U.S. yet to be built. 
     Magnis aims to secure a final location for its commercial
AAM facility in the U.S. by June 30, and commence production by
February 2025. 
 (Reporting by Nausheen Thusoo in Bengaluru; Editing by Sandra
Maler and Chris Reese)
 ((Nausheen.Thusoo@thomsonreuters.com;))