The Magnis Energy Technologies Ltd (ASX: MNS) share price is lifting slightly today. As of writing, shares in the lithium-ion battery manufacturer are trading for 37.5 cents each – up 0.53%. At opening, shares were trading for 41.5 cents each. By comparison, the S&P/ASX All Ordinaries Index (ASX: XAO) is 0.08% lower.
Today's price movement comes after the company announced it has increased production capacity at one of its plants.
Let's take a closer look at today's news.
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What did Magnis announce today?
In a statement to the ASX, Magnis said it has increased the production capacity at its 63% owned Imperium3 New York (iM3NY) lithium-ion battery plant in Endicott, New York to 1.8 gigawatt hours per year.
The increased productivity is possible, according to the company, because of equipment purchased from fellow manufacturer A123 Systems. The purchase was possible due a US$85 million funding package completed mid-last month. The equipment can be used to produce more of the same product iM3NY already makes, or to manufacture different cell designs.
Magnis claims it already has an estimated US$655 million in sales, through the form of binding offtake orders.
Management commentary
Magnis Chair, Frank Poullas, said "with financing completed, the team in NY is focused on meeting production milestones."
iM3NY CEO, Chaitanya Sharma, added "we are working around the clock to fast-track production at the iM3NY battery plant following the recent injection of substantial funding."
Lithium's bright future
Lithium-ion batteries, and by extension lithium itself, are seeing record levels of demand. That's because demand for electric vehicles, which need lithium-ion batteries to function, is surging. It's part of a broader trend that is seeing demand for greener technology in general increasing. Copper and platinum group elements are seeing similar price rises to lithium because of this clean technology dynamic.
Looking at lithium specifically, its price is up 93.55% since the beginning of 2021 to be at a 24-month record of approximately US$13,900 per tonne. The website Trading Economics expects its value to increase for at least the next 12 months.
Magnis share price snapshot
Over the past 12 months, the Magnis share price has risen 660%. In fact, since the first day of trading this year, the company's value has appreciated 100%.
Magnis has a market capitalisation of $314 million.
