Magnis Energy Technologies Ltd (ASX:MNS, OTCQX:MNSEF) is progressing with the independent certification process to ensure cells being produced at the Imperium3 New York (iM3NY) lithium-ion battery plant in Endicott, NY meet a range of international safety standards.
The lithium-ion battery technology and materials company has a 61% stake in iM3NY.
Commercial cell production at the plant started in August 2022 and independent certification began in late 2022 following the completion of internal qualification processes.
Independent certification
The independent certification process focuses on a range of international safety standards, including Standard UN38.3.
UN38.3 is a United Nations standard that lithium batteries must meet to achieve certification for safe transport in large quantities (by air, sea, rail or road).
Until the certification is achieved, a limit of eight cells may be shipped to customers, meaning recent sales have been limited.
In one of the last tests performed, a cell reported an irregular result which has resulted in the process starting again with a new batch of cells.
In order to compress the timeline to achieve certification, additional accredited independent certifiers have been appointed.
Despite the disappointment over the delay, Magnis is encouraged by the ongoing sampling of cells produced by iM3NY among both existing and potential new customers, which reinforces the company’s view on positive market demand for these new cells.
Sales to major OEMs
A small number of cells have been sold to existing and potential new customers, to enable their internal qualification processes to be undertaken.
The range of customers includes major and Tier 1 OEMs from the electric vehicle and stationary energy storage sectors, which is an important step in securing larger sales contracts with these parties in the future.
Production of cells continues
Orders from Sukh Energy, an existing iM3NY contracted customer, have been placed for delivery in calendar 2023.
Delivery of cells will start once the external certification to Standard UN38.3 as referred to above is completed.
Production of cells continues with those cells being stockpiled on site to ensure delivery can occur in a timely manner upon receipt of independent certification and confirmation orders once the internal qualification processes of the customers have been completed.