Tanzania nods to Elon Musk’s graphite deal

THE government has nodded Tesla’s, an American multinational automotive company plans of buying 17,500 tonnes of graphite, an undertaking scheduled to start from 2025.

Though it was yet to receive an official communication about the deal, the government maintained that it had no objection whatsoever to the US’s firm decision of striking a deal with Uranex Tanzania limited (Uranex) and Magnis Technologies Tanzania limited (MTT).

Through Minerals Deputy Minister, Dr Stephen Kiruswa the government insisted that it had welcomed the move which he said will bolster exploration and production of the minerals in Tanzania.

“We have no objection at all considering that Tanzania has not had significant production of Graphite for quite some time now,” clarified the Deputy Minister for Minerals when reached for comment by ‘Daily News’ yesterday.

According to Dr Kiruswa, Tesla which is globally revered for Tesla designing and manufacturing of electric vehicles had a long-time interest of exploring Graphite in the country.

“They had a keen interest in doing so, nevertheless we would still wish to have an official communication on their envisioned plan and details of the deal,” he added.

According to a statement availed to this paper on Monday, Magnis Energy Technologies Ltd (ASX: MNS) entered into a Binding Offtake Agreement with Tesla, Inc., a firm headed by a US business magnate and investor Elon Musk, for the supply of Anode Active Material (AAM) beginning in February 2025 with fixed pricing.

Under the agreement, Tesla will purchase a minimum of 17,500 tonnes starting from February 2025 with a maximum of 35,000 tonnes for a minimum three-year term at a fixed price.

The agreement is conditional on Magnis securing a final location for its commercial AAM facility by 30 June 2023, producing AAM from a pilot plant by March 31, 2024 commencing production from the commercial AAM facility by February 1 and customer qualification.

According to the statement, the development of Pilot Plant facilities for both Nachu Graphite concentrate and AAM has commenced with equipment orders initiated and new hires recently appointed.

Additionally, technical aspects of producing AAM using Nachu graphite concentrate have been developed over a seven-year period at facilities based in New York.

The materials have further been developed with environmentally sustainable processes that do not need any chemical or thermal purification.

“We are really excited to bring our high performing AAM to market that requires no chemical or thermal purification throughout the whole process, which differentiates this sustainable material in the market and provides great value to all parties,” Magnis Chairman, Frank Poullas, said.

The deal arrives at a critical juncture for both companies.

More importantly, Tanzania is set for unprecedented benefits from the deal.

Uranex is a subsidiary company operating under the Australian miner Magnis Energy Technologies and its Nachu Graphite Project is renowned to be among the World’s leading graphite deposits.

Uranex has been entrusted by the government of Tanzania to hold a Special Mining License No. 550/2015 under the jurisdiction of the Ministry of Minerals.

Tanzania is set to become a leading contender in the global push for moving towards use of greener and sustainable renewable energy, through the Nachu Graphite Project.

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