E25’s High-Purity Manganese Project Receives US$166M Grant from U.S. Department of Energy

Key Highlights

• Grant Award: Element 25 secures US$166M grant from the U.S. Department of Energy (DoE) under the Battery Materials Processing Grant Program.
• Facility Location: The proposed HPMSM production facility will be located in Baton Rouge, Louisiana.
• Sustainability Focus: The project supports low-carbon, ethically sourced HPMSM for the U.S. electric vehicle (EV) market.
• Job Creation: The project will create 400 construction jobs and 144 full-time roles once production starts.
• Partnerships: Element 25 has secured financing and offtake agreements with General Motors (GM) and Stellantis.
• Element 25 Limited (ASX: E25) witnessed a 18.52% surge in its stock price, closing at $0.32 on January 20, 2025.

Element 25 Limited (ASX:E25), an Australian mining company, has achieved a significant milestone with the announcement that its High-Purity Manganese Sulphate Monohydrate (HPMSM) project has been awarded a US$166 million grant from the U.S. Department of Energy (DoE).

This grant will support the development of Element 25 Limited’s (ASX:E25) groundbreaking battery material processing facility in Louisiana, USA, marking a critical step toward reducing dependence on foreign raw materials for the U.S. electric vehicle (EV) market.

A Game-Changing Development in Battery Material Processing

The grant, which is part of the Battery Materials Processing Grant Program under the Bipartisan Infrastructure Law, highlights the U.S. government’s commitment to bolstering its domestic supply chain for essential raw materials used in the production of electric vehicle batteries. Element 25 Limited’s (ASX:E25) project, designed to manufacture HPMSM, plays a pivotal role in this transition to a more sustainable and secure supply chain for EV manufacturers.

Element 25 Limited’s (ASX:E25) Managing Director, Justin Brown, expressed his enthusiasm for the grant, stating, “This is a landmark achievement that brings us closer to securing a significant role in the U.S. electric vehicle supply chain. The grant, combined with the funding already provided by General Motors and Stellantis, will help us take this project to the next level.”

The project will utilize manganese ore sourced from Element 25 Limited’s (ASX:E25) Butcherbird Mine in Western Australia, using an innovative processing method that reduces energy consumption and virtually eliminates waste. This technology positions Element 25 Limited (ASX:E25) as a leader in the development of low-carbon, ethically sourced materials for the growing electric vehicle industry.

How the U.S. DoE Grant Supports E25’s Vision

The US$166 million in grant funding is a significant component of Element 25 Limited’s (ASX:E25) financial strategy for the Louisiana HPMSM facility. The grant agreement, which will provide funding in five stages, reflects the U.S. Department of Energy’s commitment to accelerating the production of critical materials for the energy transition. With this financial support, Element 25 Limited (ASX:E25) plans to commence construction in early 2025, aiming to produce up to 135,000 tons per year of high-purity manganese sulphate.

Importantly, this funding is in addition to the US$115 million already committed by General Motors LLC (GM) and Stellantis N.V. (Stellantis), both of which have signed off-take agreements with Element 25 Limited (ASX:E25) to purchase significant quantities of HPMSM for their electric vehicle batteries. The combination of these commitments is expected to propel the project forward, providing a solid foundation for the construction of the facility.

Creating Jobs and Economic Growth

The Louisiana facility will not only play a crucial role in advancing the U.S. electric vehicle market but also generate significant local economic benefits. The project is expected to create 400 jobs during its construction phase, with 144 full-time permanent positions once the facility is operational. The focus on local workforce recruitment and training is expected to benefit the state’s economy by providing high-quality, long-term employment opportunities, particularly for workers from the oil and gas sector.

Element 25 Limited’s (ASX:E25) commitment to local communities is evident in its plans to prioritize Louisiana-based suppliers and workers. The company has already initiated discussions with local stakeholders to ensure the facility’s successful integration into the community.

E25’s Innovative Process: A Breakthrough for the EV Industry

The Louisiana HPMSM project will be a first-of-its-kind facility, designed to process manganese into high-purity manganese sulphate monohydrate, a key raw material used in lithium-ion batteries for electric vehicles. By leveraging its proprietary process, Element 25 Limited (ASX:E25) aims to produce HPMSM with one of the lowest carbon footprints in the industry.

The facility will be strategically located near major U.S. ports and infrastructure, which will facilitate efficient transportation of raw materials and finished products. The location also provides access to a skilled labor force and abundant utilities, further enhancing the project’s feasibility and cost-effectiveness.

E25’s Stock Price Movement:

Element 25 Limited (ASX: E25) experienced a substantial 18.52% surge in its stock price, closing at $0.32 on January 20, 2025. This sharp increase reflects heightened investor confidence following the announcement of a US$166 million grant from the U.S. Department of Energy (DoE) for its High-Purity Manganese Sulphate Monohydrate (HPMSM) project.

Key Stock Data:

• Volume: 2.83M shares traded, significantly above the 4-week average of 97,658.
• Market Cap: $70.37M, positioning E25 as a key small-cap player in the Basic Materials sector.
• 52-Week Range: $0.185 - $0.480, showcasing its recovery and growth potential.
• Year-to-Date Performance: Up 25.49%, signaling a strong start to 2025.

Looking to the Future: Expanding the U.S. Supply Chain

The Louisiana facility is just the beginning for Element 25 Limited’s (ASX:E25) ambitious plans to scale up HPMSM production. The company is pursuing a “Design One Build Many” strategy, which envisions multiple processing plants across the U.S. to meet the growing demand for battery materials. Additionally, Element 25 Limited (ASX:E25) is exploring opportunities in other regions, such as Japan, where it has partnered with Nissan Chemical to explore new avenues for HPMSM production.

The company’s expansion plans are further supported by its ongoing partnerships with major automakers like General Motors and Stellantis, which have already committed to purchasing substantial quantities of HPMSM from Element 25 Limited’s (ASX:E25) Louisiana facility. These partnerships underscore the importance of domestic sourcing for critical materials in the rapidly growing EV sector.

A Step Toward Energy Independence

The US$166 million grant from the U.S. Department of Energy is a crucial step forward for Element 25 Limited (ASX:E25) and its vision of becoming a leading supplier of critical materials for the electric vehicle market. As the world continues to transition toward more sustainable energy sources, Element 25 Limited’s (ASX:E25) innovative processing technology and commitment to ethical sourcing position the company to play a key role in shaping the future of battery materials.

With strong backing from the U.S. government and leading automakers, Element 25 Limited (ASX:E25) is well-positioned to contribute significantly to the U.S. electric vehicle industry while creating jobs and driving economic growth in the process. This is just the beginning of what promises to be a transformative journey for the company, its partners, and the communities it serves.