The Magnis Energy Technologies Ltd (ASX: MNS) share price is rising today. This comes after the company announced that a three-party MoU has been signed for its 'big battery' project. At the time of writing, the Magnis share price is up 5.7% to 18.5 cents. In comparison, the All Ordinaries Index (ASX: XAO) is down 0.4% to 6,820 points.
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What's moving the Magnis share price higher
The Magnis share price is on the move today after the company announced a tripartite collaboration between Magnis, The University of Newcastle (UoN) and Fletcher International Exports to deploy a battery at Fletcher's Dubbo meat processing facility.
The project, due to commence in mid-2021, will see the battery transported from the company's New York inventory. From there, the 2.2 MWh 'plug and play' battery will be installed using the best possible option for integration.
An R&D program overseen by the UON's Institute of Energy and Resources will seek to explore cost and efficiency gains. In addition, the project may include renewable energy inputs to further enhance its operational power profile. Magnis noted that Fletcher has struggled to improve its energy use due to prohibitive costs and risk of disruption to its operations.
Management commentary
Deputy Prime Minister, The Hon. Mr Michael McCormack, welcomed the partnership by saying:
It is good to see the agriculture sector working closely with some of our brightest minds to develop new technology that will help the $31 billion industry grow.
Further to his comments, UoN's deputy vice chancellor, research and innovation, Professor Janet Nelson added:
This partnership will provide the pathways for industry partners of O2N to tap into the expertise and multidisciplinary capabilities of the University's researchers, specialised equipment and infrastructure.
Our aim is to have our researchers and students integrated with local industry, building on regional successes and unique attribute to drive innovative outcomes for these key sectors.
Lastly, Magnis executive chair Mr Frank Poullas said:
Agreements like these are a vital element in the company's strategic plan to expand Lithium-ion battery cell offtake partnerships, as production in New York and then our plans for Australian manufacturing scales up.
About the Magnis share price
Over the past six months, the Magnis share price has risen more than 140% to its current level of 18.5 cents. Although the short-term picture appears rosy, looking at a larger time period, the Magnis share price is down 43% across the past two years.
