Firebird Metals Secures Strategic Manganese Supply MoU with Eramet

Strategic Partnership with Eramet

Firebird Metals Limited (ASX: FRB) has taken a significant stride in its development trajectory by signing a non-binding Memorandum of Understanding (MoU) with Eramet, a French multinational mining and metallurgy leader. The agreement centers on securing a reliable supply of manganese ore to feed Firebird’s planned battery-grade manganese sulphate (MnSO4) and manganese tetra-oxide (Mn3O4) plant in China.

Through its subsidiary Comilog, Eramet operates the Moanda mines in Gabon, the world’s largest manganese mining operation, producing millions of tonnes annually. This partnership provides Firebird with access to a high-quality ore source, critical for producing the high-purity manganese products demanded by the burgeoning electric vehicle (EV) battery market.

Operational and Market Implications

The MoU outlines an annual supply of 80,000 tonnes of manganese ore, delivered quarterly, which exceeds the 66,000 tonnes per annum referenced in Firebird’s feasibility study. This buffer is designed to mitigate potential supply chain disruptions and ensure steady plant operations. Stage One of Firebird’s project aims to produce 50,000 tonnes per annum of battery-grade MnSO4 and 10,000 tonnes of Mn3O4, positioning the company as a near-term, low-cost supplier in a rapidly growing market segment.

Firebird’s Managing Director, Peter Allen, emphasized the strategic importance of this agreement, highlighting Eramet’s calibre as a partner and the role this supply arrangement plays in accelerating Firebird’s path to production and sustainable cash flow generation. The MoU also reflects Firebird’s commitment to vertical integration and its broader vision to support the clean energy transition through supplying manganese for lithium manganese iron phosphate (LMFP) batteries.

Path to Long-Term Supply and Expansion

While the MoU is non-binding and contingent on Firebird securing project financing and commencing plant construction, both parties intend to convert it into a long-term supply agreement by 2026. This milestone-driven approach aligns with Firebird’s phased development strategy, where Stage Two will leverage ore from its 100%-owned Oakover Manganese Project in Western Australia. The Oakover Project, with a substantial mineral resource, is expected to underpin a significant scale-up to approximately 300,000 tonnes per annum of MnSO4 production in China, alongside additional output for Western markets.

This dual-sourcing strategy, initially relying on Eramet’s ore and subsequently transitioning to Firebird’s own resources, positions the company to manage supply risks and optimize cost structures as it scales.

Broader Industry Context

Firebird’s move comes amid increasing demand for manganese-based cathode materials, particularly LMFP batteries, which are gaining traction due to their cost-effectiveness and performance in EV applications. The company’s focus on high-purity manganese sulphate production places it in a select group of ASX-listed developers targeting this niche, potentially offering a competitive advantage as automakers diversify battery chemistries.

In addition, the partnership with Eramet, a well-established player with a strong sustainability ethos, aligns with growing investor and regulatory emphasis on responsible sourcing and environmental stewardship in battery supply chains.