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Element 25 Limited

Quarterly Activities Report

Element 25 Limited (E25 or Company) (ASX:E25) is pleased to present its Quarterly Report.


Battery Grade Manganese Feasibility Study Delivers Compelling Results

  • Feasibility Study1 (FS) demonstrates compelling economics for the proposed first ever US based battery grade high purity manganese sulphate monohydrate (HPMSM) facility in the U.S. (Facility).
  • US Electric Vehicle (EV) demand is expected to grow 12x by 2030 (Benchmark Minerals).
  • Industry commitments of over US$90 billion to build U.S. battery capacity to provide batteries for 10M electric vehicles (EVs) each year.
  • HPMSM is required for the production of pre-cathode active materials (pCAM) used in EV batteries.
  • Element 25 Limited (Element 25, E25 or Company) (ASX:E25) Facility is positioned to be the leading US source of HPMSM.
  • Offtake and financing agreements in place with Stellantis N.V. (Stellantis) and General Motors LLC (GM) bringing US$115M in financing to the project via equity, pre-payment and debt.
  • Industry leading ESG credentials - E25 HPMSM calculated to produce ~1.7kg of CO2 for every 1kg of HPMSM which is approximately ~ 67% lower than competitors in China and ~26% lower than closest non-China optimised case.

General Motors and Stellantis Offtake and Project Finance

  • Stellantis N.V. (Stellantis) completes placement of A$21.5M in E25 at A$1 per share to fund ongoing works on the Louisiana Facility.
  • Element 25 and General Motors LLC sign definitive agreement for the supply of battery grade HPMSM for GM’s electric vehicle battery requirements in their UltiumTM battery plants.
  • E25 to supply GM with manganese sulfate required to scale EV capacity in North America beyond 1 million units annually.
  • E25 plans to build its first manganese sulfate facility in the U.S. which will process manganese from its Butcherbird Manganese Mine in Western Australia (Butcherbird).
  • GM to provide US$85 million (~A$128 million) loan to E25 to build the proposed Facility.
  • Total funding commitments total US$115M from Stellantis and GM.

Butcherbird Manganese Operations, WA

  • Appointment of Key Senior Operations Personnel to the Butcherbird Team as part of the Production Improvement Plan (PIP).
  • Clint Moxham joins the Team as General Manager Operations (GMO). Clint’s key responsibilities include:
    • Statutory and operational oversight of the Butcherbird Manganese Mine.
    • Implementation and oversight of improved operational processes.
    • Continued improvement in plant preventative maintenance targeting improved run times to increase production.
  • Gideon van Wyk has joined the Team as General Manager (Manganese Ore Business). Gideon’s key responsibilities include:
    • Process optimisation and improvement with the existing operations targeting tonnes, grade and recoveries.
    • Technology selection for optimised expansion plant utilising improved comminution and dense media separation (DMS).
    • Planning and execution of the Butcherbird Expansion Project to increase concentrate production volumes to a targeted 1Mtpa.

Butcherbird Expansion Planning

  • General Manager (Manganese Ore Business) Gideon van Wyk is leading and managing the expansion project.
  • The principle aim is to expand the production of manganese concentrate to a nominal target of 1Mtpa.
  • Gideon has recently returned from South Africa where he made significant progress with equipment suppliers and engineering consultants to advance the project.
  • Capital cost estimate to install the expanded facility and project schedule based on lead times as advised by key equipment vendors to be compiled and evaluated.
  • In June 2023 that Pricewaterhouse Coopers (PwC) were appointed as the Company’s auditors effective 23 June 2023 and this appointment will continue until the next annual general meeting of the Company2.

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This article includes content from Element 25 Limited, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.

Element 25 Limited (ASX:E25)

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