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Manganese-focused player Element 25 Ltd (ASX:E25) told investors that it’s in the running for a US$166 million grant from the US Department of Energy (DoE) which will progress its building of a battery-grade, high-purity manganese sulphate monohydrate (HPMSM) facility in Louisiana.
The company has been chosen for award negotiations leading to the grant – which would be provided under the Battery Materials Processing Grant Programme – and this follows an earlier funding commitment of US$115 million from offtake partners General Motors LLC and Stellantis N.V.
Element 25 has said the grant will form a key element of its financing strategy for the facility project, and it expects to finalise a binding funding agreement with the DoE for the grant as soon as possible.
According to the company’s plans for the project, manganese ore would be shipped from its Butcherbird mine in Western Australia to the facility in Louisiana for the production of HPMSM.
Managing director Justin Brown said that news of the grant was a major achievement for the company’s vision for the facility.
“This grant from the U.S. Department of Energy, once finalised, represents a major milestone in our development of the Louisiana HPMSM Project and adds to the commitments already received from GM and Stellantis which include both offtake and financing agreements in support of the refinery,” he said.
“The grant will fund up to half of the construction capital costs for the project and when combined with existing commitments, will propel the project towards financial close and commencement of construction, creating long-term jobs for Louisiana and delivering ethically sourced, IRA compliant HPMSM to our customers.”
Shares in Element 25 rose sharply on the news, and by 13:17 AEST, they were trading at 37.5 cents – a rise of 74.42% since the market opened.
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