By Michael Elkins
Australian Lithium battery company, Magnis Energy announced on Tuesday that they have signed a binding offtake deal with Tesla Inc (NASDAQ:TSLA) to supply battery anode materials. The deal will last for a minimum of three-years beginning February 2025.
The deal comes while automakers battle to secure critical minerals as the world shifts to decarbonize and diversify global supply chains away from China.
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.
Shares of TSLA are down 3.49% in afternoon trading on Tuesday.