Tesla has confirmed an agreement with Australia’s Magnis Energy Technologies, supplying them with the critical minerals needed to produce RVs.
Tesla will purchase a minimum of 17,500 tonnes per annum (tpa) from February 2025, with a maximum 35,000tpa for a minimum three-year term.
So that Magnis can easily supply the minerals to US based Tesla, they are sourcing a final US location for their commercial anode active materials (AAM) facility. This location must be secured by Jun 30 2023 and is a condition of the agreement. Other conditions include Magnis producing AAM from a pilot plant by March 31 2024, and commencing production from the facility by February 1 2025.
“We are really excited to bring our high-performing AAM to market that requires no chemical or thermal purification throughout the whole process, which differentiates this sustainable material in the market and provides great value to all parties,” Magnis chairman Frank Poullas said.
Tesla has made several other deals with lithium miners that have unfortunately fallen through. In March 2022, Core Lithium secured a supply deal with Tesla but the agreement ultimately fell through in October of that year.
In June 2022, Australia’s Liontown completed negotiations with Tesla to begin supply in 2024. Further to this, the offtake agreement is conditional on Liontown commencing commercial production at Kathleen Valley in WA by no later than December 1 2025.
Time will tell whether this third deal with Magnis will reach lithium delivery in 2025.