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Magnis Energy Technologies’ (ASX:MNS) iM3NY gets A$110M for NY battery plant

Energy
ASX:MNS      MCAP $50.37M
19 April 2021 11:30 (AEST)
Magnis Energy Technologies (ASX:MNS) - Chairman, Frank Poullas

Source: NewsCorp

Magnis Energy Technologies’ (MNS) subsidiary, iM3NY, has received US$85 million (about A$110.2 million) to accelerate production at its lithium-ion battery plant.

The funding is made up of a US$50 million (roughly A$64.8 million) senior-secured term loan from Riverstone Credit Partners and US$35 million (roughly A$45.3 million) of equity funding of which Magnis contributed over US$23.6 million (roughly A$30.5 million.

Following its equity investment, Magnis now has a direct and indirect interest of 63 per cent in iM3NY.

“Today’s announcement is a culmination of over two years of work from both the Magnis and Charge CCCV LLC (C4V) teams to finalise this funding while retaining majority ownership,” Magnis Chairman Frank Poullas said.

Excitingly, iM3NY’s New York-based project is now fully funded to generate over one gigawatt-hour of high-grade lithium-ion battery cells per year.

The first generation batteries will incorporate C4V’s patented Bio Mineralisation technology with its own process to produce higher capacity, safer and lower-cost batteries to reduce carbon emissions.

“We are very proud to support iM3 in this project and technology that is consistent with our global strategy to encourage decarbonization of the planet and build a better environment for generations to come,” Riverstone Managing Director Daniel Flannery said.

“We believe we are in the right place at the right time to capture the enormous growth about to hit the globe for lithium-ion batteries and being in the world’s largest economy with one of the country’s largest near-term battery plants bode well for future growth plans,” iM3NY Chairman Dr Shailesh Upreti said.

Looking ahead, iM3NY plans to expand its battery plant to produce 32 gigawatts per annum with production expected to begin early next year.

Magnis’ shares are up 4.71 per cent and are trading at 44.5 cents at 10:30 am AEST.

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