Battery Metals

Magnis Energy commences lithium-ion battery production; shares open 15% higher

Fri 12 Aug 22, 11:22am (AEDT)
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Source: iStock

Key Points

  • Magnis Energy plans to ramp up annual production levels to 1GWh by the end of 2023
  • 1GWh equates to roughly 8,400 battery cells per day
  • Magnis' lithium-ion cells require no cobalt or nickel

Magnis Energy (ASX: MNS) inspired a brief 26% rally in share price after announcing the commencement of commercial lithium-ion battery production at its iM3NY plant in New York.

"As soon as the cells pass the quality assurance stage, annual manufacturing levels are expected to increase to annual production levels of 1GWh by the end of 2023," Magnis said in a statement. At the plant capacity of 1GWh, approximately 8,400 battery cells would be produced daily.

Over the rest of this decade, Magnis aspires to ramp production towards 38GWh by 2030.

Magnis hinted that "ongoing advanced talks continue with a number of groups including potential government funding."

iM3NY batteries explained

Magnis' technology partner C4V has developed a patented bio-mineralising process referred to as BMLMP.

"The BMLMP technology enables one of the highest voltages of any Lithium-ion cells in the marketplace at 3.9 volts," said Magnis.

The BMLMP promotes long cycle life, fast charging and ensures greater safety. Plus, no cobalt or nickel is used to manufacture the high performing cell.

“With previously announced binding sales agreements, I look forward to updating the market as we move towards generating revenues and increasing the capacity of the plant to meet some of the huge demand currently experienced for Lithium-ion Batteries especially in the United States," commented Chairman Frank Poullas.

Right on cue

The production milestone has helped Magnis shares break above a rather longstanding trendline.

The announcement has also attracted rather abnormal trading volumes, with around 25m shares traded at 11:00 am AEST compared to a 20-day average of just 5.1m.

The stock has retreated from session highs of 26% (46 cents). It will be interesting to see if profit taking continues or if the stock can hold onto gains.

Magnis share price chart
Magnis share price chart (Source: TradingView, Annotations by Market Index)

 

Written By

Kerry Sun

Content Strategist

Kerry holds a Bachelor of Commerce from Monash University. He is an avid swing trader, focused on technical set ups and breakouts. Outside of writing and trading, Kerry is a big UFC fan, loves poker and training Muay Thai. Connect via LinkedIn or email.

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