The company has also secured an exclusive agreement over selective patents, which will assist in driving Magnis’ growth in the lithium-ion battery sector.
C4V has a wide range of patents and technology for current and future lithium-ion battery materials and manufacturing, which are pivotal to Magnis’ ongoing business development in the sector.
Magnis will acquire a 10% stake in C4V for a total of US$7.5 million, comprising an upfront consideration of US$2 million, US$2.5 million in Magnis shares and a further $3 million cash payment to be paid within the next 12 months.
Magnis and its partners recently placed the winning bid for the acquisition of near new lithium-ion battery manufacturing equipment located in North Carolina, U.S.
The company owns one-third of the global consortium, Imperium3 NY, which is building a 15 GWh (gigawatt hours) lithium-ion battery plant at Huron Campus in upstate New York.
Over US$200 million was initially invested by the previous owners into the plant which is being acquired, which commenced full-scale operations in 2016 and employed over 290 people.
Significant reduction in capital cost
Imperium3 NY’s Stage 1 development for 3GWh of production at Huron Campus had an original CAPEX cost of US$130 million.
This new equipment acquisition now allows it to produce over 1GWh at a significantly reduced CAPEX cost of US$5 million plus removal, re-engineering and reassembly.
Critically, this strategic acquisition will bring forward commercial cell production at Huron Campus from the previously indicated end of 2019 target to the first half of 2019.
Battery technology which eliminates cobalt
Magnis chairman Frank Poullas said: “While the cobalt price is around US$95,000 per tonne, to have access to a battery technology which eliminates cobalt, will be extremely important for the industry and the company’s involvement with our battery plants globally.”