Magnis Resources strikes lithium supply deal

Australian listed Magnis Resources has strengthened its position in the lithium market after signing a memorandum of understanding (MOU) with German lithium-ion battery consortium TerraE-Holding GmBH to supply raw materials to TerraE gigafactories.

TerraE plans to build 34GWh of production capacity across two locations in Germany, with first stage production expected to begin in late 2019.

Magnis chairman Frank Poullas said, “Magnis is quickly becoming a major player in the lithium-ion battery revolution that is in its early stages. Our technology is being recognised by major players in this space and today’s announcement is further confirmation of this.”

The MOU builds on Magnis’ involvement in lithium gigafactories in Townsville, Queensland and in New York.

The Queensland Government supported the construction of a 400-hectare lithium-ion gigafactory in Woodstock following the submission of a scoping study outlining its positive economic impact.

The Townsville Battery plant consortium consists of Imperium3, Eastman Kodak company and C&D Assembly. In turn, Imperium3 is comprised of Magnis Resources, Boston Energy and Innovation and Charge CCCV.

Progress is being made on the Townsville gigafactory being made on the technical development of the project, with ongoing engagement with major equipment vendors and budget costs so far being consistent with scoping study estimates.

Pilot testing of manufacturing processes and production of prototype battery products for potential customers has also begun.

Poullas added that the company was thankful for the support it has received from the Queensland Government, the Townsville City Council and other government agencies to get the project underway.

“We are continuing to make very strong progress across a number of fronts in advancing this major project, both in terms of securing funding and technical development. This work is crucial in laying the foundations for the Townsville lithium-ion gigafactory,” he said.

“The Townsville lithium-ion gigafactory will be a vitally important piece of economic infrastructure for the Queensland economy, which will secure Townsville as a leading international hub for technology and innovation.”