(Reuters) - Australia's graphite developer Magnis Energy on Tuesday said it has signed a binding offtake deal with Tesla (NASDAQ:TSLA) Inc to supply battery anode materials for a minimum three-year term beginning February 2025.
The deal comes while automakers race to secure the supply of critical minerals as the world shifts to decarbonise and diversify global supply chains away from China, the world's biggest producer of electric vehicle batteries.
Australia is beefing up its supply of critical minerals to the global auto industry, with BHP group, Syrah Resources, Liontown Resources and Piedmont Lithium having agreed to supply these minerals to Tesla.
The company said it will supply to Tesla a minimum of 17,500 terapascal of anode active material (AAM), used in the making of lithium ion batteries, going to up to 35,000 terapascal, from a facility in the U.S. yet to be built.
Magnis aims to secure a final location for its commercial AAM facility in the U.S. by June 30, and commence production by February 2025.