US$166 million grant retained as GM agreements end

GM Financing Framework Ends as Louisiana Project Is Reset

Element 25 Limited (ASX:E25) is resetting the commercial structure around its planned Louisiana high-purity manganese sulphate monohydrate facility after mutually terminating its existing supply and financing agreements with General Motors. The company retains a US$166 million U.S. Department of Energy grant, but it is now assessing a wider mix of debt, strategic equity and project-level investment rather than relying on the original OEM-linked model.

The GM termination includes reciprocal releases, the cancellation of GM’s term loan commitments and the release of related security interests and collateral arrangements. Element 25 said the agreements reflected an earlier project schedule, execution plan and funding structure, while the parties remain engaged over potential future HPMSM supply opportunities.

Stellantis Offtake Changes Await Definitive Documents

Element 25 and Stellantis have agreed in principle to revise their HPMSM offtake and prepayment arrangements so they align with the updated development plan and schedule. The amendments are not yet final: negotiations must still produce and execute definitive documents.

The reset builds on an earlier project structure that positioned the Louisiana facility as a US$166 million-supported entry into U.S. battery-materials supply chains, as outlined in earlier Louisiana grant coverage. The latest announcement does not disclose a replacement financing commitment, an updated total project cost or a new construction timetable.

DOE Grant Retained While Documentation Is Updated

The revised Department of Energy terms update the scope of work, budget-period tasks and milestones for the Louisiana project. Element 25 described the changes as principally administrative and scheduling-related, and said the grant remains central to its development and funding strategy.

Formal administrative work with the DoE is continuing, with the revised grant documentation yet to be finalised. That leaves the grant as an important support for the project, but not a completed substitute for the financing commitments that disappeared with the GM agreements.

Manganese Enters U.S. Defence Supply Chain Program

Element 25 has also submitted an initial proposal to the U.S. Defense Industrial Base Consortium under a critical-minerals request that specifically names high-purity and electrolytic manganese among four target commodities. The program covers domestic sourcing, processing, refining, recycling and related supply-chain capabilities.

Participation does not guarantee funding or an award. The company is also engaging with U.S. government, industry, research and advanced-manufacturing groups as it tests where the Louisiana project might fit within the country’s push for domestic critical-minerals capacity.

Battery Storage Broadens the Demand Case

“Battery storage market development”

Element 25 pointed to International Energy Agency data showing 108 gigawatts of new battery-storage capacity was deployed globally in 2025, 40% above the prior year, with about 80% of additions utility-scale. The company said this broadens potential battery-materials demand beyond electric vehicles, while continuing to assess battery chemistry and end-use developments as part of its revised execution strategy.

The immediate test is less about the long-term demand argument than whether the new project structure can be converted into binding contracts and funding. Stellantis documentation, final DoE grant terms and a credible replacement for GM’s financing commitments are the practical milestones now separating the revised plan from another round of project ambition.