To lay out the industrial chain, Tesla reached a supply agreement with Australian graphite manufacturer Magnis.

According to foreign media reports, Tesla signed a binding off-take agreement with Australian graphite producer Magnis Energy Technologies (hereinafter referred to as Magnis) on February 21. According to the agreement, Magnis will supply Tesla with anodic active material (AAM).

It is reported that the anode active material is a kind of graphite-based material, which is very important for the manufacture of lithium-ion batteries.

Under the conditional agreement, Magnis will supply Tesla with at least 17500 tons of anodic active materials at a fixed price for at least three years from February 2025. However, Tesla could choose to double the supply and could buy as much as 35000 tonnes a year.

Foreign media said the deal depends on whether Magnis can find a site to build an AAM factory by February 1, 2025, and put its envisioned AAM factory into commercial production.

With Tesla's efforts to acquire battery materials, Magnis became the latest Australian company to sign a binding off-take agreement with Tesla.

In addition to Magnis, BHP Billiton, Syrah Resources, Liontown Resources and Piedmont Lithium all reached supply agreements with Tesla.