Magnis Resources Limited (ASX:MNS) reports that the Imperium3 NY consortium, of which it is a member, has signed Binding Sales Agreements for its lithium-ion battery product.
The deals have been signed with a number of end users amounting to 40% of the planned first years 3GWh of production.
Magnis is a one third owner of the Imperium3 New York consortium which is developing a lithium-ion battery plant to be located at Huron Campus.
Sales agreements are for the consortium’s proprietary patented cathode technology, which eliminates the need for cobalt and nickel, while delivering comparable performance in terms of energy density and life at a significantly lower cost.
The project is supported by New York State Government through a financial assistance package of US$13.25 million.
The Binding Sales Agreements terms ranged from 3-5 years, with the end users coming from a diverse range of industries including the automotive and energy sectors.
Magnis’ Chairman Frank Poullas said the majority of customers are based in the United States, Asia and the Middle East and have been engaged with the consortium during the year towards building a sustainable supply chain for the production of lithium-ion batteries.
“Today’s announcement is a significant milestone for the Imperium3 New York consortium’s Gigafactory development plans and validates the recent financial support afforded by the New York Government and Governor Cuomo,” Mr Poullas said.
“To have our batteries qualified by major end-users to the extent of securing sales agreements for close to half of our initial first stage production is testament to the performance and cost effectiveness of our battery product.
“We have very strong end-user interest in our product and we are on-track for first production at a gigawatt-hour scale in 2019.”
Over 30 battery material inputs, including raw materials, electrolyte, separator, additives and binders are currently undergoing qualification from strategic suppliers of these critical ingredients.
