Element 25 Raises $18 Million to Expand Butcherbird Manganese Production and Support US Battery Facility

Capital Raise Accelerates Butcherbird Expansion

Element 25 (ASX:E25) has completed an $18 million share placement priced at A$0.30 per share, marking a critical step in funding the expansion of its flagship Butcherbird Manganese Project in Western Australia. The raise, executed in a single tranche, comes on the back of a previously secured AU$50 million senior debt facility from the Northern Australia Infrastructure Facility (NAIF) announced in June 2025, underscoring strong financial backing for the project.

The placement will issue 60 million new shares at a 5.6% discount to the recent five-day volume weighted average price, reflecting a modest concession to attract investor support amid challenging market conditions. Element 25’s Managing Director Justin Brown highlighted the strategic importance of expanding Butcherbird to supply both steel industry partners and feedstock for the company’s planned battery-grade manganese sulphate monohydrate (HPMSM) facility in Louisiana, USA.

Butcherbird Expansion Project Details and Economics

The Butcherbird Expansion Project (BBX) targets a production capacity increase to 1.1 million tonnes per annum of manganese oxide concentrate. The project is fully approved under Western Australia’s regulatory framework, including environmental and local government clearances, clearing a major hurdle for construction. A January 2025 feasibility study update estimated the capital cost at AU$64.8 million, projecting a pre-tax net present value (NPV) of AU$561 million and an internal rate of return (IRR) of 96%, figures that signal robust economic viability.

Butcherbird holds a world-class Ore Reserve of 101 million tonnes at 10.4% manganese, equating to 10.5 million tonnes of contained manganese. This expansion will not only meet growing demand from steelmaking but also enable Element 25 to supply concentrate to its US HPMSM refinery, which is positioned to capitalise on the rising electric vehicle (EV) battery market.

Strategic Link to US Battery Materials Market

Element 25’s US-based HPMSM refinery project in Louisiana is supported by major automakers General Motors and Stellantis, alongside a substantial US$166 million grant from the U.S. Department of Energy. This facility aims to produce battery-grade manganese sulphate monohydrate, a critical raw material for emerging lithium manganese rich (LMR) battery chemistries that could significantly increase manganese demand in EV batteries.

The company’s dual focus on expanding manganese concentrate production at Butcherbird and advancing its proprietary HPMSM technology reflects a strategic positioning to serve both traditional steel markets and the fast-evolving energy storage sector. This approach was detailed in Element 25’s recent progress updates, where the company accelerated its Butcherbird expansion and US refinery plans with strong financial and strategic backing Element 25 Accelerates Butcherbird Expansion and US HPMSM Refinery with Strong Backing.

Market Reception and Next Steps

The placement is expected to settle on 22 April 2026, with Petra Capital acting as sole lead manager and bookrunner. The funds will be deployed alongside the NAIF debt facility to advance construction of the BBX project in line with the company’s timeline. Investors will be watching closely as Element 25 moves towards mechanical completion and commissioning phases targeted for early 2027, with the expansion’s success pivotal for supplying both steel and battery sectors.

While the project benefits from strong regulatory approvals and compelling financial metrics, forward-looking statements caution that risks such as commodity price fluctuations, project execution challenges, and market demand shifts remain. The company confirms no material changes to prior assumptions underpinning production targets and reserves, maintaining continuity with its earlier disclosures.