Sign up
Oil Capital

Magnis Resources purchases equipment to fast-track U.S. lithium battery plant

Lithium-ion battery production expected to commence within 12-15 months
lithium ion battery
Capital raising to fund the acquisition has raised $5 million

Magnis Resources Ltd (ASX:MNS) and partners have placed the winning bid for the acquisition of near new lithium-ion battery manufacturing equipment currently located in North Carolina, U.S.

The company owns one-third of the global consortium, Imperium3 NY, which is building a 15 GWh (gigawatt hours) lithium-ion battery plant at Huron Campus in upstate New York.

READ: Magnis Resources secures New York state funding for lithium-ion gigafactory

Magnis has also completed a successful $5 million capital raising to fund its share of the purchase and to increase its stake in Imperium3 NY to a percentage level that will be disclosed on closing the deal.

Lithium battery production to start at 1GWh

The lithium-ion battery plant assets consist of high-quality new and near new equipment from major U.S. and European suppliers.

Over US$200 million was initially invested by the previous owners into the plant which commenced full-scale operations in 2016 and employed over 290 people.

The plant is currently housed in a facility in North Carolina and includes all operations from slurry making to coating to cell assembly, formation and testing and even includes module assembly and packing.

The equipment will now be disconnected and packed for transport to Huron Campus in New York where it will be reassembled and re-engineered for battery production at a nominal 1GWh scale.

Significant reduction in capital cost

The purchase price of the plant equipment, raw materials and machinery is US$5 million with a US$1 million deposit accepted and close of purchase scheduled for completion in late February.

Imperium3 NY’s Stage 1 development for 3GWh of production at Huron Campus had an original CAPEX cost of US$130 million.

This current equipment acquisition now allows it to produce over 1GWh at a significantly reduced CAPEX cost of US$5 million plus removal, re-engineering and reassembly.

Near-term battery production

Critically, this strategic acquisition will bring forward commercial cell production at Huron Campus from the previously indicated end of 2019 target to the first half of 2019.

Register here to be notified of future MNS Company articles
View full MNS profile View Profile
View All

Related Articles

© oil Capital 2018

Oil Capital, a subsidiary of Proactive Investors, acts as the vanguard for listed oil companies to interact with institutional and highly capitalised investors.
Headquartered in London, Oil Capital is led by a team of Europe's leading analysts and journalists, publishing daily content, covering all key movements in the Technology market.