I understand that it can be frustrating to observe individuals who seemingly do not hold any stakes in MNS continually disparage the stock. It's important to remember, however, that public forums encompass a variety of perspectives. While some individuals might express negativity out of spite or even for personal gain, it's essential to focus on the core fundamentals and potential of the company. Despite the noise, the intrinsic value and potential of MNS can't be understated, especially considering recent strategic partnerships and governmental support for local battery production. Therefore, it's crucial to stay patient, make informed decisions, and focus on the long-term prospects of the company.
Despite the current downturn in MNS I've decided to double down and average my investment. This decision appears poised to pay off soon, given the company's numerous promising developments.The major hurdle to cash flow generation for Magnis has been the certification of its battery technology, a process that's critical for large-scale manufacturing and sales.
However, with the US government's strong push to expedite domestic battery projects, this bottleneck is likely to be resolved in a timely manner.This initiative is part of a larger strategy to compete with China in the burgeoning battery market, integral to the broader electric vehicle and renewable energy sectors. Magnis, with its US-based subsidiary iM3NY operating a Gigawatt scale Lithium-ion battery manufacturing project in Endicott, New York, stands to directly benefit from these regulatory tailwinds.
Therefore, despite the short-term market fluctuations, my decision to further invest in Magnis is driven by its strategic positioning in the electrification supply chain, its valuable partnerships with companies like Tesla and Omega Seiki Mobility, and the regulatory support it is receiving. I believe these factors bode well for the company's future profitability and growth.
Magnis Energy Technologies Ltd (ASX: MNS; OTCQX: MNSEF; FSE: U1P) could be considered a worthwhile investment for several reasons:
1- Vertically Integrated Supply Chain: Magnis is involved in several aspects of the electrification supply chain, from mining high-quality, high-performance anode materials to manufacturing green credentialed lithium-ion battery cells. This vertical integration could potentially reduce costs and increase efficiency.
2 - Regulatory Support: The US Department of Energy Advanced Technology Vehicles Manufacturing Loan Program is planning to distribute US$17 billion to support research and domestic manufacturing of Lithium-Ion Batteries in the US. This provides a regulatory tailwind that could benefit Magnis in its US operations.
3 - Scalable Business in a Growing Market: Magnis is a unique ASX listed play into large-scale global Lithium-Ion Battery cell manufacturing, a critical component for the adoption of Electric Mobility and Energy Storage. The global push for decarbonization and the increasing adoption of electric vehicles provide a significant market opportunity.
4 - Experienced Leadership: Magnis' board of directors has unrivalled capabilities and expertise in Lithium-Ion Batteries, Automotive Innovation & Mining sectors.
5 - World-Class Intellectual Property: Magnis is partnering with technology partner C4V, who has developed next-generation anode and cathode battery materials with patent protection in several countries.
6 - High-Quality Graphite: Magnis has access to high-quality graphite, a critical component in the anode of Lithium-ion Battery cells. East Africa, where Magnis' Nachu Graphite Project is located, will be a key supplier of higher-quality and larger flake graphite to the world
7 - Commercialized Technology: iM3NY, in which Magnis is a major shareholder, is set to start production of Li-ion batteries in 2022 using C4V’s technology which is commercial-ready.
8 - Offtake Agreement with Tesla: Magnis has secured a fixed price contract with Tesla Inc for the supply of anode active materials (AAM) starting from February 2025. This agreement aligns it with one of the leading companies in the electric vehicle industry.
9 - Partnership with Omega Seiki Mobility: Magnis, through its major shareholding in iM3NY, is set to bring its advanced battery technology to the Indian market. This joint venture with Omega Seiki Mobility, an electric vehicle manufacturer in India, opens up a new market for Magnis' technology and products.
These factors position Magnis Energy Technologies as a potentially worthwhile investment, as the company is well-placed within the electrification supply chain and has established key relationships with significant players in the global EV and energy storage market. As the demand for lithium-ion batteries continues to increase due to the transition to clean energy and electric mobility, Magnis stands to benefit significantly.
MNS Price at posting:
21.0¢ Sentiment: Buy Disclosure: Held
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