Magnis chief David Taylor quits, taking the list of departing executives to 14

The departure of 10-month CEO David Taylor from Magnis Energy Technologies marks the latest in a series of exits at the battery firm.

Magnis Energy Technologies chair Frank Poullas. Picture: Hollie Adams

Magnis Energy Technologies has lost its second CEO in three years, the latest in a string of departures from the ASX-listed battery and graphite player that has faced an exodus of seasoned executives and directors.

The move by David Taylor to tender his resignation on Wednesday, triggering a six-month notice period, comes just 10 months after he took on the role, and was announced by the battery company with little fanfare.

Mr Taylor is the 14th executive or director to leave Magnis since 2020. His exit comes as the financial pressures on the company are only set to increase.

The source of Mr Taylor’s decision to leave Magnis is unclear, with the former Worley executive not responding to attempts to contact him.

Magnis’s statement noted the “board on behalf of the shareholders would like to express their appreciation for David’s valuable contribution”, but the CEO’s voice had been absent from several public announcements made by the company in the month leading up to his resignation.

Several former executives and directors from Magnis have told The Weekend Australian they were ushered out of the business after clashing with high-profile shareholders or the company’s long serving chair, Frank Poullas.

In addition to at least 14 who have left Magnis, several of the battery player’s partners, including Boston Global, headed by ex-Macquarie executive Bill Moss, have also dumped the business.

Magnis desperately needs to start selling batteries from its flagship 1.8GW battery gigafactory in upstate New York. The gigafactory in the town of Endicott has been a money sink for

David Taylor has resigned as chief executive.

Magnis, which has poured tens of millions of dollars into the operation, on top of a $US100m ($145.2m) loan backed by the intellectual property of Magnis’s battery operation iM3NY, which falls due in April next year.

Magnis has made repeated promises about revenues flowing from its Endicott site, telling investors it would deliver $80m in revenues in 2022, climbing to $360m in 2023 and $1.8bn in 2027.

A key sticking point has been securing certification to transport the cells, which Magnis announced it had secured the day after Mr Taylor announced his resignation. But Magnis sources have questioned if the capital-hungry company will be able to keep up with its debt levels and the need to fund the manufacturing operation at iM3NY.

The latest set of accounts from Magnis showed it spent $44.6m in the nine months to March on property, plant and equipment.

Magnis spent $32.9m in the same period on operating activities, including $10.8m on interest and other costs of finance.

This left Magnis with $43.46m in cash in the bank, covering a further 3.2 quarters of funding.

In May, Magnis said it would bank $23.15m from a share placement, but later told investors in its quarterly update “after fees and expenses, net proceeds in tranche 1 were closer to $22m”.

A Magnis source has indicated the firm may need to top up its funds again soon if it is to meet its capital needs, noting iM3NY may need to start selling at least $3m in cells a week if it is to hit the $150m in revenue that would be needed for Magnis to break even on costs for the year.

Magnis’s half-year accounts, covering the period to December, showed the battery company was sitting on $4m in inventory at its iM3NY site, with a further $12m in advances and deposits.

The inventories at the iM3NY site came after the factory began production in April last year.

Magnis declined to comment.

Originally published as Magnis chief David Taylor quits, taking the list of departing executives to 14