Magnis Boosts Nachu Engineering, Eyes US Anode Market with 160% Tariffs on China

Progress on Nachu Graphite Project

Magnis Energy Technologies Ltd has taken a significant step forward with detailed engineering work now underway for its flagship Nachu Graphite Project in Tanzania. The engineering, led by Xinhai’s subsidiary Yantai Xinhai Mining Research & Design, is expected to be completed within 24 weeks, covering mine planning, processing plant design, and tailings storage facilities. This phase is critical to advancing the project towards development and eventual production.

Complementing this, a tri-party memorandum of understanding (MOU) has been signed with Xinhai and SMC, assigning responsibilities for the processing plant and civil works respectively. Both parties will also collaborate on securing financing, a key factor given the capital-intensive nature of mining projects. Additionally, an MOU with AUXIN Mining Services for mining operations remains in place, underscoring Magnis’s commitment to progressing Nachu.

US Anode Material Development and Tariff Impact

Magnis is also focusing on fast-tracking the development of anode materials in the United States, responding to urgent customer demand. This move is strategically timed as the US Department of Commerce has imposed a preliminary anti-dumping duty of 93.5% on Chinese graphite-based active anode materials, which, combined with existing tariffs, results in an effective rate of 160%. This tariff environment potentially creates a competitive advantage for Magnis’s US-based anode material production, positioning the company to capture market share previously dominated by Chinese imports.

IM3NY Bankruptcy and Corporate Developments

The company’s US subsidiary, IM3NY LLC, emerged from Chapter 11 bankruptcy protection in June 2025 after its assets were sold in April. However, Magnis currently sees little prospect of recovering its investment through the bankruptcy process. Despite this setback, the company retains its economic interest in Imperium3 and continues to reserve its rights.

On the corporate front, director Peter Tsegas resigned after a decade of involvement, particularly in advancing the Nachu project. Meanwhile, secured debt facilities with McEvoy Street (Alexandria) Pty Ltd were increased to over $8 million, with an additional $5 million of financial support pledged for ongoing operations over the next year. These arrangements provide some financial runway amid ongoing operating losses and limited cash reserves.

ASX Suspension and Compliance Challenges

Magnis’s shares remain suspended on the ASX since December 2023 due to concerns over the company’s ability to comply with continuous disclosure and other listing rules. The ASX has classified Magnis as a long-term suspended entity, requiring the company to demonstrate compliance and sufficient operational activity before reinstatement can be considered. This includes establishing robust disclosure arrangements and potentially divesting interests in Imperium3. The company has cautioned shareholders that reinstatement is not guaranteed and may be subject to conditions related to financial health and operational progress.

Looking ahead, Magnis appears poised to refocus its efforts on the Nachu Graphite Project as its primary asset, leveraging the engineering progress and strategic partnerships to navigate the complex regulatory and market environment.