Electric vehicle (EV) giant Tesla has been teasing a possible agreement with a critical minerals company since mid-2022 – and it seems that it has finally come to fruition.
Under a new agreement, Australia’s Magnis Energy Technologies will supply Tesla with the critical minerals it needs to produce EVs.
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.
Magnis is currently in the process of selecting a final location for its commercial anode active materials (AAM) facility in the US so it can easily supply the minerals to the America-based Tesla.
“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.
The agreement is conditional on Magnis securing its US location by June 30 2023, producing AAM from a pilot plant by March 31 2024, and commencing production from the facility by February 1 2025.
This is not the first time Tesla has made a deal with a lithium miner.
In March 2022, Core Lithium secured a supply deal with Tesla but the agreement ultimately fell through in October of that year.
June 2022 saw Australia’s Liontown complete lithium purchase negotiations with Tesla.
Supply from Liontown is expected to begin in 2024, with the offtake agreement 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.