Funding and Contract Awards Will Make or Break Element 25’s Expansion Timeline

Progressing the Butcherbird Expansion

Element 25 Limited is advancing its ambitious Butcherbird Expansion Project (BBX) in Western Australia, aiming to boost manganese concentrate production to 1.1 million tonnes per annum. This expansion is underpinned by an updated feasibility study and a substantial ore reserve, positioning the company to supply both traditional steel markets and the emerging electric vehicle battery sector.

The project’s scale and strategic importance are clear, the increased output will not only meet demand from established ferroalloy customers but also secure long-term feedstock for Element 25’s planned high purity manganese sulphate monohydrate (HPMSM) facility in Louisiana, USA. This dual-market approach reflects the company’s forward-looking strategy to integrate mining operations with battery materials production.

Contracting and Procurement Milestones

Element 25 has shortlisted key contractors for the construction phase, with contract awards for construction and mining services anticipated in the first half of 2026. The company’s preference for a single head contractor to manage integrated construction scopes highlights a streamlined approach to project delivery. Additionally, site services contracts are expected to be awarded by mid-2026, ensuring operational support aligns with construction progress.

Procurement activities are well underway, with the manufacture of a critical processing component; the logwasher; completed and scheduled for shipment in late February. Other major equipment, including the dense media separation drum, cyclone cluster, and conveyors, are in the procurement pipeline with contracts expected to be finalised by March. These milestones are crucial to maintaining the project’s timeline towards mechanical completion and commissioning in early 2027.

Securing Project Finance and Technical Support

Financially, the project benefits from a senior debt facility of up to AU$50 million approved by the Northern Australia Infrastructure Facility (NAIF), which includes a cost overrun buffer. Element 25 has engaged SLR, a leading consultancy, to assist with technical and funding due diligence, ensuring all regulatory and financial requirements are met. This collaboration aims to secure the remaining capital needed to reach financial close and keep the project on track.

Alongside financing, the company is implementing advanced operational systems, selecting Microsoft Dynamics 365 as its enterprise resource planning platform. This digital infrastructure, supported by partners Ray Business Technologies and Barter Technologies, will enable integrated data management from pit to port, incorporating AI and analytics to optimise operations.

Strategic Outlook and Market Positioning

Element 25’s Butcherbird Expansion is more than a production increase; it is a strategic pivot towards becoming a key supplier of battery-grade manganese materials. The planned HPMSM refinery in Louisiana, developed in partnership with automotive giants General Motors and Stellantis, underscores the company’s commitment to the electric vehicle supply chain. This hub-and-spoke model envisages multiple processing facilities supplied by Butcherbird ore, targeting rapid growth in global EV markets.

While the project timeline remains contingent on securing final funding and contract awards, Element 25’s methodical progress and robust stakeholder engagement suggest a well-managed path forward. Investors and industry watchers will be keen to see how the company navigates the next critical phases of construction and commissioning.