Element 25 (ASX:E25,OTCQX:ELMTF) has been selected to receive a US$166 million grant from the US Department of Energy, the company said in an announcement on Tuesday (September 24).
The funds will come from the Battery Materials Processing Grant Program, and will be used for the construction of the company’s proposed battery-grade high-purity manganese sulphate monohydrate (HPMSM) facility in Louisiana.
The Battery Materials Processing Grant Program has a US$3 billion budget to distribute grants for endeavours that will help ensure that the US has a viable battery materials processing industry.
Element 25 has already secured US$115 million from offtake partners General Motors (NYSE:GM) and Stellantis (NYSE:STLA). The US$166 million grant will go on top of this as part of the company’s financing strategy.
“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,” explained Justin Brown, managing director of Element 25. He added that HPMSM facility will create long-term jobs in the state.
Manganese ore will be shipped to Louisiana from the company’s Butcherbird manganese mine in Western Australia.
The company said it has developed an innovative, advanced processing flowsheet to convert manganese concentrate to HPMSM, honing in on lower energy consumption and the reduction of waste.
After conversion, the HPMSM will be directed into the US electric vehicle supply chain.
The facility is expected to be 230,00 square feet with annual production of 71,650 tonnes of HPMSM. Element 25 said it will be one of the first HPMSM-producing commercial facilities in the US, reducing the country’s reliance on China.
Subject to grant finalisation, the execution team will work to finish the project schedule.
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Securities Disclosure: I, Gabrielle de la Cruz, hold no direct investment interest in any company mentioned in this article.
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