Element 25 (E25) announced it has secured $243 million (USD 166 million) in funding from the United States (US) Department of Energy (DOE) that will partially fund the construction of a high-purity manganese sulphate monohydrate (HPMSM) facility the miner plans to build in the US state of Louisiana.
Manganese sulphate is used as a stabilising component in lithium-ion battery cathodes but most of the supply in its refined form is sourced from China.
Perth-headquartered E25 plans to build a 21,000 square metre refining facility with the hope of producing about 65,000 tonnes of HPMSM annually for use in electric vehicle (EV) battery manufacturing. The manganese ore is to be sourced from its Butcherbird mine in Western Australia and shipped to Louisiana.
The US government said the E25 plant is set be one of the first commercial facilities in the country to produce HPMSM, and has the potential to reduce the current dependency on Chinese sources.
The funding for the refining facility has been awarded under the DOE’s Battery Materials Processing Grants Program which is designed to provide up to $4.4 billion in grants to help bolster a domestic supply chain that enhances America’s energy security and economic competitiveness.
John Podesta, senior advisor to US President Joe Biden, said building a domestic supply chain for batteries is critical to ensuring a stable, reliable energy future for America.
“The Biden-Harris administration is using every available tool to onshore and friend-shore the supply chain for EVs and batteries, working with our allies and partners, for the benefit of our national security, our economy, and our planet,” he said.
E25 Managing Director Justin Brown welcomed the US government funding which he said is in addition to the almost $170 million (USD 115 million) already committed by car makers General Motors (GM) and Stellantis.
In mid-2023, GM agreed to lend $US85 million to E25 and signed an offtake deal for the annual supply of 32,500 tonnes of manganese sulphate over seven years. Stellantis, which manufactures brands including Chrysler, Jeep and Maserati, has a take-or-pay offtake commitment for 45,000 tonnes annually over five years and has contributed $US30 million in funding.
“This grant from the US 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,” Brown 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.”
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