Future lithium-ion battery producer's New York plant gets the tick of approval

ASX-LISTED Magnis Energy Limited (MNS) has announced it has completed a valuation on its lithium-ion battery cell manufacturing facility in New York as part of the due diligence process for project financing.

The independent valuation, which was completed by O'Brian & Gere, a wholly owned subsidiary of Dutch engineering giant Ramboll Group, on the battery plant came in at $US71.34 million.

The valuation began in August 2019 and went through all the items purchased as part of the acquisition made in early 2018. In the current condition of the equipment the report attributes a valuation today of US$71.34 million (A$105.5 million). With Magnis having an ownership of over 50 percent in iM3NY through its direct and indirect holdings including its stake in C4V, a value of about A$53 million can be attributed to Magnis’ share in the value of the equipment.

Magnis managing director Marc Vogts said, "We believe that the purchase of the New York battery plant will fast track cell manufacturing at commercial scale for the company once funding for commissioning of the plant is secured. The purchase of the equipment last year was a strategic purchase and today’s announcement validates our decision.

"We continue to prioritise efforts to secure funding and the third-party valuation of our battery plant will assist in financing considerations.”

Having recently secured $8 million through a private placement with Middle East based Negma Group the company is now well funded to advance on all projects both in Australia and overseas, he said.

ends