Magnis Energy Technologies Ltd. said its 47%-owned Imperium3 New York battery development consortium signed a 13-year term sheet for US$52 million in funding.
The debt financing, through a pre-issued European bond used to fund renewable energy projects, consists of two stages. The first payment of US$30 million will be made when final documentation is completed. The remaining amount will be issued 12 months after the first payment, with no milestones attached. Interest will be set at 5.35% per annum.
The project financing is expected to close within 50 days, and the funds will be used to produce lithium-ion battery cells from the company's Huron Campus in New York.
The company said March 18 that it aims to start producing batteries within 12 months of funding closure. Off-take contracts are in place for the majority of the first three years of planned production.