Australia’s Magnis Cracked an Agreement With Tesla to Supply Graphite for Electric Car Batteries, Revolutionising the Industry

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Magnis Energy, an Australia-based graphite developer, announced that it had inked a binding offtake agreement with Tesla (NASDAQ: TSLA) Inc to provide battery anode materials for at least three years starting from February 2025. 

It is excellent news for both companies as they look forward to their fruitful partnership.

Tesla (ticker: TSLA) has again demonstrated its commitment to growth and cost efficiency by securing vital battery supplies through this deal, proving that Tesla is prepared for continued success.

Graphite may be small compared to other minerals, but its importance cannot be overlooked. In 2022 alone, an impressive 1.2 million metric tons were extracted from the ground. To put this into perspective, consider that copper – another EV material with a massive global market of 26 million metric tonnes annually – is far more common than graphite.

As we strive to reduce emissions and diversify our global supply chains away from China, automakers compete to access the essential minerals needed in their vehicles. This deal comes at a crucial time as they race against each other to secure those resources.

China continues to dominate this industry as the world’s leading electric vehicle battery manufacturer.

Australia is bolstering its supply of essential minerals to the car industry worldwide, ensuring a steady and abundant stream of resources.

Tesla has agreed with several prominent mineral companies, including BHP Group, Syrah Resources, Liontown Resources, and Piedmont Lithium, for the supply of minerals.

The company promised to provide Tesla with a minimum of 17,500 terapascal worth of Anode Active Material (AAM) to assist in the powering needs.

Lithium-ion batteries require incredibly high pressure to be manufactured, which centres around 35,000 terapascal. 

Although a facility able to reach this level of intensity has yet to be constructed in the U.S., it is only a matter of time before these powerful products can become accessible domestically as well.

By the end of June, Magnis aims to have solidified a production facility for its advanced automotive manufacturing operations in the United States and plans to start producing inventory by February 2025.

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