Magnis moves closer to $1bn battery plant go ahead

Magnis Energy (ASX: MNS) has moved a step closer to a go ahead for its proposed billion dollar lithium ion battery plant with the submission of a feasibility study to the Queensland government.

The study, which examined the building of an 18GWh mega factory in three stages at Townsville, concludes the plant would cost $3 billion and provide 1,150 direct jobs.

The project was found to offer investors a 21 per cent IRR, which Magnis described as a ‘sound financial viability’ in an announcement to the stock exchange.

GHD, Ausenco, Siemens, NAB and ‘leading vendors of battery manufacturing equipment’ contributed to the study.

The plant, proposed by Magnis’ one third-owned iM3TSV group, would follow a detailed engineering plan outlined in the study.

iM3TSV has selected a cylindrical 32700 form for the battery cells which is suited to high volume manufacture using equipment from Siemens and Durr Megtec (below).

Three stages of 6GWhs each was found to be optimal in balancing capital investment with emerging market needs. (First stage below)

No major impediments were found in studying flora, fauna, hydrology, flooding, geotechnical and cultural heritage issues.

The next stages of the project involve submitting developent apllications, securing project funding and test market development.

The site for the plant is over 2,070 hectares on the western side of Flinders Highway, bounded by Ghost Gum Road and Bidwell Road.

Pictures: Magnis Energy

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