Element 25 Limited (ASX:E25) Expands Manganese Operations
Strategic Expansion of Butcherbird Mine
Element 25 Limited (E25) plans to enhance operations at its 100% owned Butcherbird Manganese Mine in Western Australia. The initiative aims to produce high-quality manganese oxide concentrate, with a production target of 1.1 million tonnes per annum. The project benefits from a world-class manganese resource, with over 270 million tonnes in resources and ongoing potential for expansion.
The current reserve estimate utilises only a portion of the global mineral resource, with additional measured and indicated resources pending updates.
Development of HPMSM Refinery
Furthermore, Element 25 is advancing plans for a US-based refinery to produce high purity manganese sulphate monohydrate (HPMSM) for electric vehicle (EV) batteries. The development is in partnership with General Motors and Stellantis, aimed at ensuring a sustainable and ethical supply chain for EV production.
In addition, Element 25 has secured funding agreements to facilitate the establishment of the Louisiana HPMSM processing facility, which is projected to produce 65,000 tonnes annually. This facility will use Australian manganese ore as feedstock, promoting a circular economy and local sourcing of materials.
Financial Support and Future Outlook
The US Department of Energy has selected the Louisiana project for negotiations regarding a US$166 million grant, partially funding the overall investment requirement. Discussions are underway to finalise the grant documentation and secure additional financing.
Element 25 aims to position itself at the forefront of EV battery materials with a best-in-class, low-carbon HPMSM product. The company’s strategic vision encompasses expanding HPMSM capacity in Europe and Asia, further solidifying its role in the sustainable battery materials market.
Motley Fool contributor Lianne Eastty has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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