Funding Gaps Remain as Element 25 Pushes Butcherbird and US Facility Forward
Element 25 has raised $10 million through a share placement to accelerate the expansion of its Butcherbird Manganese Project in Western Australia and support its planned battery materials facility in Louisiana, USA.
- Firm $10 million share placement at AU$0.28 per share
- Expansion aims to increase Butcherbird manganese production to 1.1 million tonnes per annum
- Butcherbird Expansion Project valued with AU$561 million pre-tax NPV and 96% IRR
- Supports Element 25’s US high-purity manganese sulphate monohydrate (HPMSM) facility
- Backed by AU$50 million senior debt and US Department of Energy grant
Capital Raise to Accelerate Butcherbird Expansion
Element 25 Limited has successfully secured firm commitments for a $10 million share placement priced at AU$0.28 per share. This capital injection is earmarked to fund the expansion of its flagship Butcherbird Manganese Project in Western Australia, alongside providing working capital to support ongoing operations. The placement follows a previously announced AU$50 million senior debt facility from the Northern Australia Infrastructure Facility, underscoring strong financial backing for the project’s next phase.
Butcherbird Expansion Project – A World-Class Opportunity
The Butcherbird Expansion Project (BBX) aims to increase manganese oxide concentrate production capacity to 1.1 million tonnes per annum. This expansion is underpinned by a January 2025 feasibility study update, which estimates a capital cost of AU$64.8 million and projects a robust pre-tax Net Present Value (NPV) of AU$561 million with an Internal Rate of Return (IRR) of 96%. With an Ore Reserve of 101 million tonnes at 10.4% manganese, Butcherbird stands as a globally significant manganese resource.
Strategic Link to US Battery Materials Facility
The increased manganese output from Butcherbird is critical to Element 25’s broader strategy to supply high-purity manganese sulphate monohydrate (HPMSM) for electric vehicle (EV) batteries. The company plans to build its first HPMSM processing facility in Louisiana, USA, supported by a US$166 million grant from the US Department of Energy and US$115 million in funding from key offtake partners General Motors and Stellantis. This facility aims to produce up to 135,000 tonnes per annum of battery-grade manganese, leveraging Element 25’s proprietary low-carbon processing technology.
Market Context and Industry Implications
Element 25’s move aligns with emerging trends in battery chemistry, particularly the shift towards lithium manganese rich (LMR) batteries, which require significantly higher manganese content than traditional high-nickel cells. With major automakers like General Motors adopting LMR technology, demand for ethically sourced, traceable manganese is poised to grow sharply. Element 25’s integrated supply chain from mine to battery materials positions it well to capitalize on this evolving market.
Next Steps and Outlook
The company will use the proceeds from the placement to place orders for long-lead equipment and accelerate detailed engineering design activities for the BBX project. Element 25 continues to explore additional financing options, including royalty streams and subordinated debt, to fully fund the construction phase. With regulatory approvals in place and strong financial metrics, the project is advancing steadily towards production.
Bottom Line?
Element 25’s latest capital raise marks a pivotal step in scaling its manganese supply chain to meet surging EV battery demand.
Questions in the middle?
- What are the timelines for completing the Butcherbird Expansion Project and the Louisiana HPMSM facility?
- How will Element 25 secure the remaining funding needed beyond the $10 million placement and $50 million debt facility?
- What impact will shifts in battery chemistry have on Element 25’s long-term manganese demand forecasts?
