Battery gigafactory on the backburner as Magnis walks back Queensland plans

Magnis Energy Technologies appears to have walked back on its plans, once vigorously promoted, to build a lithium-ion mega factory in Townsville, Queensland.

As recently as 2020 Magnis had reaffirmed its commitment to construct a $2 billion, 18GWh lithium-ion battery mega factory in three stages.

However since then it appears to have focused on the construction of a majority-owned battery plant nearing completion in New York, and a graphite project in Tanzania.

The company informed investors in a project update that Townsville Council had revoked their original allocation of land in the Lansdown Development which the council is now focusing more on the hydrogen sector.

The council gave Magnis the opportunity to reapply for an alternative site.

Magnis told investors: “At this point of time Magnis has decided not to pursue an alternate site at the Lansdown development, as there are no sites that meet our requirements.

“Magnis are instead considering other options for the location of its Australian gigafactory.”

However now in a later response to a query from the ASX, Magnis played down the importance of the battery plant in the company’s broader portfolio.

Magnis told the ASX: “The company does not consider the project update to be information that a reasonable person would expect to have a material impact on the price or value of the company’s securities.

“…The project, while remaining an important long-term strategic initiative for the company, constitutes a non-core (and thus immaterial) component of the company’s overall business.

“…It follows that information in relation to the project, such as the project update, is also immaterial to the company.”

Magnis said it had not decided to proceed with the project at this time.

This article was originally published by AuManufacturing. Reproduced here with permission. Read the original article here.