Element 25 Advances Butcherbird Expansion and Secures US$166M DOE Grant

Butcherbird Expansion Gains Momentum with Key Equipment Arrival

Element 25 Limited (ASX:E25) is steadily advancing its Butcherbird Expansion Project (BBX) in Western Australia’s Pilbara, aiming to boost manganese concentrate output to 1.1 million tonnes per annum by Q1 2027. The quarter saw the arrival of the first major processing equipment; a custom-built logwasher manufactured in Germany; delivered to Fremantle Port and moved to secure storage ahead of construction. This logwasher is designed to handle 600 tonnes per hour, featuring advanced washing technology to improve clay removal and withstand abrasive conditions, setting a new standard for the project’s processing capabilities.

Additional critical equipment, including primary and secondary sizers from Mining Machinery Developments (MMD), are en route, with orders placed for other main plant components such as apron feeders, conveyors, thickeners, and screens. Construction planning and detailed engineering are progressing in tandem, with all necessary permits secured and the project on track for mechanical completion and commissioning early next year.

Streamlining Operations Through Integrated Contracting

Element 25 has awarded integrated mining and haulage contracts to ReGroup Australia Pty Ltd, extending a long-term collaboration that aims to optimise operational efficiency and cost performance. This single-contractor model covers open pit mining, ore extraction, waste removal, stockpiling, and transportation of ore to Utah Point port in Port Hedland. The contracts incorporate structured performance frameworks with KPIs and continuous improvement obligations, aligning incentives and reducing interface risks across the supply chain. Finalisation of camp services, offtake, and port contracts is underway, while construction contract tenders have been issued to pre-qualified bidders.

US$166 Million DOE Grant Supports Louisiana HPMSM Facility

On the US front, Element 25 has agreed to an updated grant agreement with the U.S. Department of Energy (DoE) for US$166 million to fund its planned high-purity manganese sulphate monohydrate (HPMSM) processing facility in Louisiana. This grant, part of the DoE’s Battery Materials Processing Grant Program, underscores the strategic importance of domestic battery materials manufacturing and aligns with US critical minerals and supply chain objectives.

The revised agreement reflects a repositioned project execution plan that responds to evolving electric vehicle (EV) market conditions and emerging battery chemistries. Element 25’s integrated strategy links the Butcherbird manganese supply with the Louisiana refinery, aiming to establish a vertically integrated battery materials platform that supports increasing demand for manganese-rich battery cathodes, including lithium manganese-rich (LMR) and lithium-manganese-iron-phosphate (LMFP) chemistries.

Reviewing HPMSM Project Execution Amid Market Shifts

Element 25 is undertaking a review of its HPMSM Project Execution Plan to optimise development strategy in light of shifting EV battery technologies and market dynamics. The company highlights that LMR battery cells require significantly more manganese; up to ten times compared to high nickel chemistries; positioning HPMSM as a critical raw material for future battery manufacturing. The Louisiana facility, supported by partnerships with General Motors and Stellantis, aims to supply the US EV market with battery-grade manganese materials.

The company expects to provide further updates as the revised execution plan is finalised, maintaining strong engagement with the DoE and strategic partners to advance key workstreams.

Financial Position and Capital Raising

Element 25 completed an $18 million placement in April 2026, issuing 60 million shares at $0.30 each, representing a discount to recent trading prices. The company ended the quarter with cash reserves of A$18.3 million, supported by disciplined cash management despite ongoing project development expenditures. Operating cash outflows were $1.37 million for the quarter, with investing activities, primarily equipment procurement and tenement payments, totaling $5.13 million.

Payments to related parties, including directors’ fees and consulting, amounted to $140,000 during the quarter. The company remains well-funded to continue construction and development activities through the next phases.