MinRes adds to global lithium production cuts amid downturn
The company will put its Bald Hill lithium mine in Western Australia under care and maintenance starting this week.
Australia’s securities regulator said on Tuesday that it had filed a lawsuit against Magnis Energy Technologies and its chairman for failing to disclose details about the lithium-ion battery firm’s US manufacturing facility.
The Australian Securities and Investments Commission (ASIC) alleged that Magnis, despite becoming aware of inaccuracies in its claims regarding funding of the Endicott, New York battery plant and cell output capacity, failed to disclose the information in a timely manner.
The lithium-ion battery facility is run by US business Imperium3 New York (iM3NY), in which Magnis holds a majority stake.
Magnis made multiple announcements between April 2021 and March 2023, stating the project was fully funded to generate at least 1 GWh of lithium-ion battery cells per year and that the project had begun commercial production, among others.
However, the regulator alleged that by at least January 2023, Magnis and executive chairman Frank Poullas were aware about the inaccuracies in their claims and predictions and that “the plant at that time was struggling to produce 300 battery cells per day”.
“The company will examine the statement of claim in conjunction with its legal advisers and will keep the market informed as required,” Magnis said in an exchange filing.
The matter will be listed for a case management hearing on a date to be fixed by the court, the regulator said, adding that it was seeking declarations and pecuniary penalties against the company and Poullas.
(By Adwitiya Srivastava; Editing by Anil D’Silva and Subhranshu Sahu)
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