Element 25 Limited (ASX:E25) Secures $166M Grant for Manganese Project
Major Grant Awarded
Element 25 Limited (ASX: E25) has secured a US$166 million (A$268 million) grant from the U.S. Department of Energy (DoE). The grant will support the construction of the company’s planned high-purity manganese sulphate monohydrate facility in Louisiana. This facility will play a crucial role in advancing domestic production of essential battery raw materials in the USA.
Project Financing and Collaborations
The grant enhances Element 25’s financing strategy, adding to the US$115 million previously committed by partners General Motors LLC and Stellantis N.V. The total financing for the project now stands at US$281 million, with minor additional funding needed to complete the financial structure.
E25’s innovative processing technique plans to convert manganese ore from its Butcherbird mine in Western Australia into high-purity manganese for electric vehicle (EV) battery production. This approach aims to significantly reduce energy consumption and carbon intensity compared to alternatives.
Job Creation and Economic Impact
The construction of the facility is projected to create around 400 jobs and provide 144 permanent positions once operational. Element 25 prioritises local workforce recruitment, aiming to engage individuals from the oil and gas sector and nearby communities.
Justin Brown, Managing Director of Element 25, stated, “This grant from the U.S. Department of Energy represents a major milestone in our development of the Louisiana HPMSM Project. The grant will fund up to half of the construction capital costs and will propel the project towards financial close and construction commencement.”
Future Outlook
The project is set to commence on 1 April 2025, with preparations allowed to begin up to 90 days prior. The facility aims to produce up to 135,000 tonnes of high-purity manganese annually, supporting the growing demand from U.S. EV supply chains. E25 is committed to delivering ethically sourced materials to its customers while fostering local economic development.
Motley Fool contributor Aaron Shaw 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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