What’s fueling Magnis Energy’s (ASX:MNS) growth in the battery market? - Kalkine Media

February 17, 2023 02:31 PM AEDT | By Manisha
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Highlights

  • Magnis Energy Technologies is forging ahead at swift pace to achieve its business goal.
  • MNS believes that it has great pool of growth opportunities in US as well as across the globe because of soaring demand of active anode materials across industries.
  • The battery market in North America is increasing in size and scope with both tier 1 players as well as startup gigafactories which need substantial amounts of active anode materials.
  • Magnis is working in partnership with C4V to manufacture high-performance active anode materials for lithium-ion batteries.
  • Magnis has also commenced development plans to set up an Active Anode Materials Project in the United States.
  • The company's US based subsidiary Imperium3 New York, Inc (iM3NY) is undergoing a production ramp up phase.

A vertically integrated lithium-ion battery technology and materials company, Magnis Energy Technologies Ltd (ASX: MNS; OTCQX: MNSEF; FSE: U1P) is ticking off its business goal at a swift pace, to make the best of the mass adoption the green energy transitions.

With expertise in battery materials, renewable energy, financial services, business strategy, the company has grown over the years to become a global player in the lithium-ion battery chain.

Now, Magnis Energy is eyeing further expansion in the global market on the back of huge demand for its products across industries. Magnis is focused on making the best of the massive pool of growth opportunities.

Keep reading to know more!

  • Soaring Demand for Anode Materials in US

At present, there isn’t any domestic supply of active anode material in North America. Therefore, to source battery materials manufactured locally strong incentives driven by legislated local content and US Government stimulus have been announced as part of the Inflation Reduction Act. Also, the battery market in the continent is increasing in size and scope at a fast pace with both tier 1 players as well as startup gigafactories which need substantial amounts of active anode materials.

  • New Tax Credits for Clean Energy Manufacturers

Section 45 has been made effective in the US since January 1, 2023. The enactment of the section will allow a tax credit to be earned by manufacturers for every single unit of eligible clean energy components produced, such as solar grade polysilicon, photovoltaic cells and wafers, torque tubes, structural fasteners, solar modules, wind energy components, battery cells, battery modules, polymeric backsheets, electrode active materials, and certain critical minerals.


Image: Company presentation

  • Favourable Global Supply Demand Dynamics

As per Benchmark Mineral Intelligence (BMI) forecast, there will be a major deficit in the supply of anode materials for the Li-ion battery industry from 2025 onwards considering expected growth rates in Li-ion batteries and shortage of supply of raw materials such as natural flake graphite. Moreover, around 971 natural flake graphite mines are required to be set up by 2035 in order to fulfil the demand for anode materials.

Building on a web of trusted partners

Magnis entered into a strategic partnership with C4V, a US intellectual property company with Lithium-ion battery expertise  to manufacture high-performance active anode materials for lithium-ion batteries by using high purity graphite concentrate feedstock from Magnis’ Nachu Graphite project in Tanzania.

Magnis has also commenced development plans to set up an Active Anode Materials Project in the US. It will include building a downstream anode active material (AAM) processing plant for which site investigation is being conducted across the US.

The company has onboard Jones Lang Lasalle, Americas, Inc as commercial real estate adviser. Orders have been placed for key long lead time equipment with leading supplier Hosokawa Alpine Aktiengesellschaft to complete demonstration plant development.

An insight into iM3NY battery plant

The company's US based subsidiary Imperium3 New York, Inc (iM3NY) operates a Gigawatt scale Lithium-ion battery manufacturing plant in Endicott, New York.

Currently, iM3NY’s production ramp up phase is underway. The company is holding discussions for expansion funding in advanced stages. Independent certification is also in progress.



Image: Company presentation

An overview of Nachu Graphite Project

Located in Ruangwa District in Tanzania, Nachu Graphite Project is a significant asset of the company involving proposed mine development and production of advanced graphite product.

The Nachu mine and extraction plant will be run by Uranex Tanzania Limited (UTL), a Tanzanian subsidiary of Magnis Energy. Uranex holds a Special Mining Licence SML No. 550/2015 granted by the Ministry of Minerals, Government of Tanzania in 2015 after graphite mineral exploration.

However, the Nachu processing plant will be operated by Magnis Technologies Tanzania Limited (MTT), a wholly owned subsidiary of Magnis Energy. MTT owns a 10-year Special Economic Zone Licence granted by the Ministry of Industry and Trade, Government of Tanzania.




Image and data source: Company presentation

Magnis Energy is leaving no stones unturned as it works towards its vision, i.e, to aid and fast-track the mass adoption of EVs and green energy storage crucial for the clean energy transition.


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