Element 25 Secures US$216M to Expand Butcherbird Mine and Build US Battery Refinery

Element 25’s Strategic Growth in Manganese Supply

Element 25 Limited (ASX – E25) is accelerating its position as a key supplier of sustainable manganese products for the burgeoning electric vehicle (EV) battery market. The company’s flagship Butcherbird Manganese Mine in Western Australia is set for a significant expansion, supported by a $50 million senior debt facility from the Northern Australia Infrastructure Facility (NAIF). This funding underpins a 1.1 million tonnes per annum manganese ore operation with a robust 18-year reserve, positioning Butcherbird as a long-life, low-cost source of high-quality manganese concentrate.

Complementing its mining operations, Element 25 is developing a battery-grade High Purity Manganese Sulphate Monohydrate (HPMSM) refinery in Louisiana, USA. This project recently secured a landmark $166 million grant from the US Department of Energy (DoE), reflecting the strategic importance of domestic critical battery materials production under the Inflation Reduction Act (IRA). The Louisiana facility aims to produce 65,000 tonnes per annum of HPMSM, a vital component for EV batteries, with binding financing commitments from automotive giants General Motors and Stellantis.

Robust Resource Base and ESG Credentials

Butcherbird boasts a world-class manganese resource exceeding 270 million tonnes, with current reserves supporting over 18 years of production at 1.1Mtpa. The project benefits from simple geology, existing infrastructure, and a strong environmental, social, and governance (ESG) framework. Element 25 highlights its low carbon footprint and minimal toxic contaminants, aligning with global sustainability trends and regulatory expectations.

The company’s innovative processing technology reduces reagent use, lowers carbon emissions, and minimizes waste residues, offering a competitive edge in cost and environmental impact. This cleaner process technology is designed to meet the growing demand for ethically sourced, low-carbon battery materials.

Global Partnerships and Market Positioning

Element 25’s vertically integrated strategy extends beyond Australia and the US, with partnerships in Japan and Europe to develop additional HPMSM capacity. A memorandum of understanding with Nissan Chemical Corporation aims to establish refining capacity in Japan, while multiple potential sites are being explored in Europe to meet regional EV battery supply needs.

The company’s binding offtake agreements with General Motors and Stellantis secure demand for its HPMSM products, underpinning the commercial viability of its Louisiana refinery. These partnerships also reflect a broader industry shift towards manganese-rich battery chemistries, which offer improved safety, energy density, and reduced reliance on nickel and cobalt.

Financing and Project Outlook

With the NAIF facility approved and the DoE grant secured, Element 25 is well-positioned to advance construction and commissioning phases. The Butcherbird expansion project has completed feasibility studies and regulatory approvals, boasting a pre-tax internal rate of return of 96% and a net present value of $561 million. Discussions continue with financiers to close remaining capital requirements, with a capital stack designed to balance senior debt, offtake prepayments, subordinated debt, and royalty financing.

As the company moves towards operational milestones, its focus on cost competitiveness, ESG leadership, and supply chain integration will be critical to capturing growing demand from the global EV market.