Element 25's High-Purity Manganese Project Receives Major U.S. DoE Grant
ELEMENT 25 LIMITED (E25) Share Update September 2024 Monday 23rd
Element 25 Secures US$166M Grant for High-Purity Manganese Project
Element 25 Limited (ASX: E25) has announced a significant milestone in its development of a high-purity manganese sulphate monohydrate (HPMSM) facility in Louisiana, USA, with the award of a US$166 million grant from the U.S. Department of Energy (DoE).
Instant Summary:
- Element 25 selected for US$166 million grant from the U.S. DoE.
- Grant supports construction of HPMSM facility in Louisiana.
- Additional US$115 million in financing from GM and Stellantis.
- Project aims to produce up to 135Kt of HPMSM annually.
- Innovative process reduces energy consumption and waste.
Grant Award and Project Details
Element 25 Limited (E25) has been selected for award negotiations for a US$166 million grant from the U.S. Department of Energy (DoE) under the Battery Materials Processing Grant Programme. This funding will support the construction of its proposed battery-grade high-purity manganese sulphate monohydrate (HPMSM) facility in Louisiana, USA.
The grant is part of the DoE’s initiative to ensure the United States has a viable battery materials processing industry. The funding is in addition to the US$115 million already committed by offtake partners General Motors LLC (GM) and Stellantis N.V. (Stellantis).
Financing and Project Execution
Element 25 has previously secured financing and offtake agreements from GM and Stellantis, including US$115 million in project funding. The company plans to produce HPMSM from manganese ore sourced from its Butcherbird mine in Western Australia and shipped to Louisiana.
The innovative processing flowsheet developed by E25 reduces energy consumption, virtually eliminates waste, and delivers the lowest reported carbon intensity HPMSM globally. The planned facility in Louisiana is expected to produce up to 135Kt per annum of HPMSM for U.S. electric vehicle (EV) supply chains.
Community and Economic Impact
The project will create hundreds of highly-skilled, permanent jobs for Louisianans and is supported by local communities and the State of Louisiana. The state has approved a substantial incentives package to support the project, acknowledging its significant local benefits.
Element 25 is committed to the long-term success of the community by creating apprenticeships for 5% of the workforce, allowing for on-the-job training. The project is expected to create 400 jobs during construction and 144 full-time ongoing roles once production commences.
The award of the US$166 million grant from the U.S. DoE is a major milestone for Element 25, significantly enhancing the financial viability of the HPMSM project. This grant, combined with existing commitments from GM and Stellantis, positions the project for successful execution and financial close.
The project's innovative processing technology and commitment to reducing carbon intensity align with global sustainability trends, potentially attracting further investor interest. The creation of jobs and local economic benefits also strengthens the project's appeal.
Investor Reaction:
Analysts are likely to view this announcement positively, given the substantial financial backing and strategic importance of the project. The grant from the U.S. DoE underscores the project's alignment with national priorities in battery materials processing and sustainability.
Investors may react favorably to the news, anticipating long-term value creation from the successful execution of the HPMSM facility. However, they will also closely monitor the finalization of the funding agreement and the project's progress towards construction and production.
Conclusion:
Element 25's receipt of a US$166 million grant from the U.S. DoE marks a significant step forward for its HPMSM project in Louisiana. Investors should stay informed on the project's developments and consider the potential long-term benefits of this strategic initiative.