Can Element 25 Overcome Financing and Market Risks in Its Global Manganese Push?

Strategic Expansion of Butcherbird Manganese Mine

Element 25 Limited is making significant strides in scaling its global manganese business, anchored by the expansion of its 100% owned Butcherbird Manganese Mine in Western Australia. The project aims to increase manganese ore production to 1.1 million tonnes per annum, supported by a robust feasibility study and strong environmental, social, and governance (ESG) credentials. The mine benefits from simple geology, low-impact operations, and a long mine life exceeding 18 years, with substantial resource upside potential.

Backing this expansion is a $50 million senior debt facility from the Northern Australia Infrastructure Facility (NAIF), which acts as the sole senior secured lender. This financing, combined with other mechanisms such as offtake prepayments and subordinated debt, underpins the project's construction readiness and cost competitiveness.

Developing a Vertically Integrated Battery-Grade Manganese Supply Chain

Complementing the mine expansion, Element 25 is developing a refinery in Louisiana, USA, to produce high-purity manganese sulphate monohydrate (HPMSM) – a critical raw material for electric vehicle (EV) batteries. This facility is designed to produce 65,000 tonnes per annum of battery-grade HPMSM, leveraging Australian manganese ore as feedstock. The refinery benefits from a $166 million grant awarded by the US Department of Energy, which secures half of the capital requirement and signals strong governmental support for domestic critical minerals processing.

Element 25 has secured binding offtake and funding agreements with major automakers General Motors and Stellantis, ensuring a committed supply of HPMSM for EV battery production. This partnership aligns with the US Inflation Reduction Act’s (IRA) incentives to onshore battery material supply chains, enhancing supply security and sustainability.

Innovative, Low-Carbon Processing Technology

The company emphasizes its proprietary processing technology that reduces carbon emissions and waste compared to traditional methods. By minimizing reagent use and employing efficient separation techniques, Element 25 aims to deliver a cleaner, cost-competitive manganese product. This approach supports the growing demand for ethically sourced and environmentally responsible battery materials, a key consideration for global EV manufacturers.

Positioning for the Future of EV Battery Chemistry

Element 25’s strategy is well-timed with the industry’s transition towards higher manganese cathode chemistries such as LMFP and LMR, which promise improved safety, energy density, and cost reductions in EV batteries. With over 95% of refined manganese capacity currently concentrated in China, Element 25’s vertically integrated supply chain offers a strategic alternative for global markets, particularly in the US, Europe, and Asia.

Additionally, the company is exploring further HPMSM production modules globally, including partnerships in Japan with Nissan Chemical Corporation, positioning itself as a key player in the evolving battery materials landscape.