High-purity manganese sulphate monohydrate facility, US – update

14th July 2023 By: Sheila Barradas - Creamer Media Research Coordinator & Senior Deputy Editor

High-purity manganese sulphate monohydrate facility, US – update

Name of the Project
High-purity manganese sulphate monohydrate (HPMSM) facility.

Louisiana, in the US.

Project Owner/s
Element 25.

Project Description
A feasibility study has confirmed the viability of producing HPMSM in Louisiana for sale to local and international offtake partners, with an environmental impact that is significantly lower than that of incumbent producers to supply the rapidly growing electric vehicle (EV) supply chain in the US.

The project comprises a production facility capable of producing a nominal 65 000 t/y of battery-grade HPMSM per train for total production of 130 000 t/y.

The HPMSM plant will also produce reusable material in the form of a fertiliser feedstock, a ferrosilicon smelter feedstock suitable for use in steel production processes and a gypsum by-product for industrial use.

In addition to the Louisiana base case location, the feasibility study has also investigated the capital and operating costs for an alternative location in Sarawak, Malaysia. Extensive investigations have previously been undertaken at the site, and Element 25 is in advanced discussions with Malaysian government bodies and potential offtake and finance partners to build an HPMSM facility in the Samalaju Industrial Park.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has a net present value, at an 8% discount rate, of $1.66-billion and an internal rate of return 29%.

Capital Expenditure
Train 1 will require capital expenditure of $289-million, with an additional $187-million required for Train 2.

Planned Start/End Date
Not stated.

Latest Developments
Global automaker Stellantis has completed its first $15-million investment in Element 25, following the offtake and project financing agreement announced in January 2023.

Under the terms of the agreement, Element 25 will supply up to 10 000 t/y of battery-grade HPMSM to Stellantis for its EV battery requirements, for five years, with the provision to extend the supply agreement and increase volumes.

The agreement combines take or pay offtake commitments for 45 000 t of HPMSM from Element 25’s proposed US-based processing facility, which Stellantis is to partly fund through a $30-million investment in two tranches.

The first $15-million has been provided through a share subscription agreement at A$1 a share. Element 25 has issued more than 22.56-million shares to Stellantis.

The company will use the proceeds from the share placement for planned engineering and construction activities to advance the HPMSM processing facility.

A further $15-million will be structured as a prepayment agreement, which will be repaid out of HPMSM supplied under the offtake agreement to Stellantis over the five-year period, on commercial terms.

Element 25 is hoping to start HPMSM supply to Stellantis in 2026, with 5 000 t of HPMSM targeted in the first year of operations, increasing to 10 000 t/y in years two to five.

Element 25 has said that the first investment from Stellantis, along with the recently announced $85-million financing facility secured from General Motors, takes project commitments from EV manufacturers to $115-million. 

Key Contracts, Suppliers and Consultants
None stated.

Contact Details for Project Information
Element 25, tel +61 8 6375 2525 or email admin@e25.com.au.