Magnis Energy Technologies Limited (ASX: MNS) has signed an additional binding contract with a US Government supplier for US$74 million over four years bringing total minimum binding sales agreements to US$729 million or nearly A$1 billion.
The agreement relates to the iM3NY Battery Plant based in Endicott, New York, of which Magnis is the major shareholder.
The new deal follows the signing of a US$655 million in binding sales agreements announced on May 3, 2021. There are ongoing discussions and qualification processes continuing with several other potential customers.
iM3NY and Danish Engineering Giant Ramboll have undertaken a phased approach to the construction of the lithium-ion battery plant facility.
Phase 1 – The pilot line, will consist of existing facility infrastructure, demolition and abatement, process room design and construction, process equipment installations of the mixing/coating and formation equipment as well as the associated facility utility design and installations.
Phases 2 and 3 – Consist of building interior cell assembly/filling dry room construction and filling/cell assembly dry room process equipment and associated facility utility design and installations.
Phase 4 – The final engineering and construction phase of iM3NY’s battery cell plant facility will consist of design and construction of the facility office space, quality control lab, maintenance, packaging, installation of formation and process equipment, and associated facility utility design and installation.
Overall project completion rate is at 17.85%. Throughout the last two months the iM3NY team has collaborated with Ramboll working through crucial design feed information including master equipment list, master utility matrix, finalised general arrangement drawings, temperature and humidity requirements, storage and feed details.
These items are critical to releasing the Ramboll design team to begin detailed engineering design work. The facility clear-out work will be completed by August 16, post which the facility customisation work will begin to start moving the machinery into their permanent locations.
The facility customisation and machinery roll out work will follow the phased approach as listed earlier. Construction material for the facility customisation work has already started to arrive at the factory. There have been zero safety incidents in June and July.
The iM3NY team continues to grow and is progressing with significant milestone without exceeding budget. In the coming months activities will increase considerably as equipment commissioning post dry room construction begin,” iM3NY Chairman, Shailesh Upreti, said.
“We are also very encouraged by discussions with strategic investors, OEM’s and government agencies all willing to assist our growth plans to exponentially increase our annual capacity.”