PERTH (miningweekly.com) – ASX- and TSX-listed Euro Manganese has signed an offtake term sheet with electric vehicle battery manufacturer Verkor for the sale of high-purity manganese sulphate monohydrate (HPMSM) from its Chvaletice manganese project, in the Czech Republic.
Euro told shareholders on Thursday that the offtake tonnage would be equivalent to a percentage of annual HPMSM production on a take-or-pay basis, with first deliveries targeted for 2027 and spanning over an initial eight-year term, with the potential for renewal.
Pricing will be based on an index-adjusted western benchmark price, and will rise and fall proportionally with the movement of a published HPMSM index on a rolling three-month quotational period.
“This is a major milestone for Euro Manganese and for the European battery value chain. I am immensely proud of the team and their hard work in negotiating the first long-term offtake term sheet, with a pricing structure, from a Western supplier in the high-purity manganese market,” said Euro Manganese president and CEO Dr Matthew James.
“Verkor has undertaken due diligence on our completed feasibility study and has placed their confidence in us and in our product. We look forward to supplying to them as they advance on their goals of delivering batteries to their customers, including Renault Group. Together, we are aligned in our pursuit of helping to create a cleaner world by enabling the green energy transition.”
A 2022 feasibility study into the Chvaletice manganese project estimated that it would have an operating life of 25 years, producing 47 800 t/y of high purity electrolytic manganese metal, or 1.1-million tonnes over the life of the project.
Verkor recently inked a non-binding letter of intent with fellow ASX-listed Talga Group for the supply of graphite anode from its Vittangi project, in Spain.