Element 25 announcement overview

Element 25 Limited (ASX:E25) has been selected for award negotiations for a US$166 million grant from the U.S. Department of Energy (DoE) under the Battery Materials Processing Grant Programme. This funding will support the construction of its proposed battery-grade high-purity manganese sulphate monohydrate (HPMSM) facility in Louisiana, USA. The grant award is in addition to the US$115 million already committed by offtake partners General Motors LLC (GM) and Stellantis N.V. (Stellantis).

Executive commentary on the grant

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. 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.

Summary of Element 25's Louisiana HPMSM project

Element 25 (ASX:E25) has secured a significant US$166 million grant from the U.S. Department of Energy for its proposed battery-grade high-purity manganese sulphate monohydrate (HPMSM) facility in Louisiana, USA. This grant, in addition to the US$115 million committed by offtake partners GM and Stellantis, will propel the project towards financial close and commencement of construction, creating long-term jobs for Louisiana. The company plans to produce up to 135Kt per annum of HPMSM for US electric vehicle (EV) supply chains, contributing to the expansion of ethically sourced, traceable, transparent HPMSM supply to US markets. Element 25 aims to become an industry-leading, world-class, low-carbon battery materials manufacturer, with ambitions to develop several HPMSM facilities under its 'Design One Build Many' commercialisation strategy.