Neat! Magnis is going through a similar path as Syrah (SYR). I...

Neat! Magnis is going through a similar path as Syrah (SYR). I am not expecting a huge short term SP increase, in fact quite the opposite (SP tends to go down when companies need to raise equity). But this looks great as MNS is positioned for huge growth in the long term. Maybe a 5-15 years play.

1) Offtake agreement with Tesla
MNS just signed an off-take of 17.5 ktpa AAM [1] with Tesla. Syrah signed similar deal in December 2021 for 8 ktpa [2].

2) Raise capital from institutional and retail investors
MNS just raised A$25m (up to A$50m) with US fund, while Syrah raised US$ 250m. Magnis broadly expected to raise (comparable?) funds via HSBC and own investors [3].

3) Receive grants and loan from US DOE
Syrah received grant for USD 220m [4] and loan for USD 107m from US government. Magnis positioned to receive similar in the future.

4) Scale up
Syrah expected to quadruple AAM production from 11ktp to 45 ktpa, while Magnis expected to build a AAM plant from scratch (production TBA but could start with 17.5 ktpa referring to the Tesla off-take?)

All of this is just on the back of a single OEM (Tesla). This is just a foot in the door - no doubt there will be much higher demand for locally produced AAM from other car manufacturers, especially as China produces 95% of all AAM and shifting US policy away from everything Chinese.


[1] https://www.reuters.com/business/autos-transportation/australias-magnis-deal-with-tesla-supply-graphite-electric-vehicle-batteries-2023-02-20/
[2] https://www.copyright link/companies/mining/syrah-signs-offtake-agreement-with-tesla-20211223-p59jr0
[3] https://www.copyright link/street-talk/hsbc-chases-big-number-for-magnis-energy-s-im3ny-plant-20221130-p5c2k9
[4] https://www.*****.com/news/2022-10-19/Syrah-Resources-announces-220-million-DOE-grant-signs-LG-MOU.html