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Magnis Energy defines A$1.12B stage-1 capex for battery cell plant in Queensland

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Magnis Energy defines A$1.12B stage-1 capex for battery cell plant in Queensland

Magnis Energy Technologies Ltd. said a feasibility study for a lithium-ion battery cell manufacturing facility in Townsville in Queensland, Australia, indicated that phasing the project would cut first-stage capital expenditure to A$1.12 billion.

The company said Oct. 1 that the 18-GWh development could be completed in three stages of 6 GWhs each, which would also allow for expansions related to potential technology and market developments, according to a study finalized by Imperium3 Townsville.

Magnis Energy owns one-third of Imperium3 Townsville, which received a A$3.1 million grant from the Queensland government in August 2018 for the project.

Total capex for the 357-hectare development was estimated at A$3.05 billion, including stage-two capex of A$944.7 million and stage-three capex of A$963.4 million. The analysis estimated a net present value of A$1.57 billion with a 21% internal rate of return, after debt and tax.

The company said Oct. 1 that Imperium3 Townsville will begin battery cell production testing in a commercial setting at equipment vendor facilities, with the cells to be independently verified by customers ahead of securing off-take contracts.

Magnis Energy will seek approval for the development with the city council of Townsville. National Australia Bank is financial adviser to Imperium3 Townsville.

Imperium3 New York Inc., a battery development consortium also partially owned by Magnis Energy, signed a 13-year term sheet in March to secure US$52 million in funding to produce lithium-ion battery cells from the company's Huron Campus in New York.