Magnis Resources Limited (ASX: MNS)

Strategic move towards mobilisation with a Global Consortium - Magnis Resources Limited, an Australian graphite producer recently announced that Imperium3 New York (iM3NY) has made significant progress on start-up activities for its New York Gigafactory project whereby Magnis has an overall 43 per cent direct and indirect shareholding through the IM3 Global Consortium. iM3NY is a recently formalised consortium consisting of five key constituents (C4V, Primet Precision Materials, and C&D Assembly, Magnis and BEI). It has well-co-ordinated its mobilisation efforts towards the disassembly, packaging and shipment of recently acquired equipment from a manufacturing plant located in North Carolina to the iM3NY facility at Huron Campus. This process of mobilisation began in North Carolina in April of this year and is on track towards the completion by the end of July. It is expected that all equipment will be delivered by early August to the iM3NY facility in the Huron Campus Facility and at present there are 2-3 truckloads arriving daily in New York.

iM3NY is committed to diversifying its product offerings to include prismatic cells in addition to its original cylindrical cell product lines and each product requires ongoing reviews of the design, as well as careful validation and qualification of components that are required to build a single cell of a Lithium-ion Battery. It is expected that iM3NY will enter into definitive agreements with potential partners within the next quarter and expects its first production from the New York plant in the first half of 2019. It was observed that the development of design specifications for prismatic cells and related manufacturing processes were well under its way at C4V’s Development Centre at the State University of New York in Binghamton.


Portion of iM3NY’s fully automated cell assembly line (Source: Company Reports)

Recently, commitments from new partners including SIEMENS, Celgard, Probuild, Norman Young & Disney, Ausenco and WT Partnership were received, and these are in addition to the existing Imperium3 consortium which consists of Magnis, C4V, Boston Energy and Innovation, Eastman Kodak Group and C&D Assembly. Siemens will play a major role in Digitalization & Automation of the next generation of lithium-ion battery plants through its digital enterprise portfolio. The funding position provides a capital base for the future as MNS continues its focus on the lithium-ion battery factory strategy including the responsibility for the end to end supply chain in sourcing the raw materials and associated technologies for lithium-ion battery cells. The share prices have been declining since the start of the year owing to negative sentiments but there was a recovery of 1.4 per cent on 14 June 2018. It might be better to stick with the stock as we give a “Hold” recommendation at the current market price of $0.375 by looking at the recent developments and strategic initiatives undertaken.

 
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