Tesla on the cusp of landing anode material offtake deal with Magnis Energy

Tesla could be on the cusp of landing its second major battery materials deal with an Australian mining company. According to a report by Australia’s Financial Review, Magnis Energy and Tesla have agreed to an offtake deal with active anode material.

Per the report, the active anode material will come via Magnis’s proposed United States production plant. The company flagged its intention to build an anode manufacturing plant in the United States last year. However, Magnis did not provide any more details or a location for the plant. (h/t: @SawyerMerritt)

Magnis owns the Nachu Graphite project in Tanzania and various processing assets in the US. These processing assets include a 61 per cent stake in the iM3NY battery manufacturing plant in Endicott, New York. However, it appears that the Tesla anode material will come from a new purpose-built active anode material facility.

An offtake deal is generally an agreement that will see one company agrees to purchase all or a portion of the product over a set period. These types of arrangements are the norm in the energy or mining sector.

Neither Magnis nor Tesla confirmed the rumours or any of the reports. However, Magnis stock spiked amid a confirmation that a material transaction would come as early as Tuesday.

About Scott Nordlund 1560 Articles
Originally from the West Coast, Scott is an avid writer & EV enthusiast now living in Ottawa. He holds a MA in Political Science and once played professional football in the German Football League. Email scott@driveteslacanada.ca