Magnis (ASX:MNS) share price sinks 6% amid battery plant update

Key points

• Magnis moves past the half-way mark to bring its lithium-ion battery plant online
• Customisation continuing, semi-automated production created batch of full-sized cells
• Fully-automated production anticipated in the first half of 2022

The Magnis Energy Technologies Ltd (ASX: MNS) share price has failed to power ahead on Friday. This is despite the battery technology company announcing a positive update on activities at its New York lithium-ion battery plant.

At the time of writing, the Magnis share price is 56 cents, down 6.72%.

What’s moving the Magnis share price?

Investors are sending the Magnis share price lower alongside a broader market sell-off on the All Ordinaries (ASX: XAO). The index is currently down 1.99% to 7,516.5 points.

In today’s statement, Magnis advised that at the end of December, the New York plant was 51% complete.

Management noted that facility customisation work is continuing, and epoxy coating has been finished.

In December, the iM3NY team collaborated with Ramboll to work on the design feed information. In addition, the team reviewed the IFB drawing packages and subsequent proposals.

Workers completed mechanical, civil and electrical works at the plant. There was also progress at other sites within the facility. This includes cathode and anode mixing rooms, cell assembly dry room, high bay dry room and the electrical sub-station.

Semi-automated production also started at the end of December with a batch of full-sized cells produced.

Over the next 2 weeks, Magnis expects to produce another batch of around 1,000 cells. The company expects volume to ramp up as it seeks to achieve fully-automated production in the first half of this year.

Touching on the achievement, iM3NY CEO, Chaitanya Sharma said:

Starting this month, some major items will be completed and it is expected that the overall completion number will jump significantly and we look forward to providing updates to all our stakeholders.

Magnis chair, Frank Poullas said:

The iM3NY team continues to deliver with semi-automated production completed on-time and we are excited by the interest shown towards our project and the cells produced.

Quick take on the New York lithium-ion battery plant

Based in Endicott, New York, the facility is expected to scale up to 1.8 GWh, starting in the first half of 2022. This will make it one of the largest players in the United States lithium-ion battery cell manufacturing market.

Magnis is a major shareholder with a roughly 60% stake in iM3NY.

Magnis share price snapshot

In the past 12 months, the Magnis share price has risen by almost 200% on the back of continuing investor excitement in the sector. The shares charged notably higher in late October after an aquifer permit approval for the lithium-ion battery plant.

Based on today’s price, Magnis has a market capitalisation of about $536.8 million with 958.6 million shares on issue.

The post Magnis (ASX:MNS) share price sinks 6% amid battery plant update appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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