E25 & Nissan Chemical Corporation Complete Scoping Study for Tokyo Bay HPMSM Facility

Element 25 Limited (E25 or Company) (ASX: E25; OTCQX: ELMTF) is pleased to provide an update regarding the non-binding Memorandum of Understanding (MoU) with Nissan Chemical Corporation (NC) and NC Tokyo Bay Corporation (NCTB) to complete a Feasibility Study (FS) into a battery grade High Purity Manganese Sulphate Monohydrate (HPMSM) facility to be located at the existing NCTB site in Chiba prefecture, Japan (Facility)¹.

In accordance with the MoU, the parties have now completed a high-level scoping study (Study) to examine the potential for E25 to construct the Facility at the Tokyo Bay site. The Study examined a range of factors, including permitting, logistics, reagent supply, labour, capital and operating costs. The Study used the detailed information available from E25’s HPMSM Louisiana Project and utilised local knowledge about the Japanese market to factorise costs where direct estimates were not available.

Pleasingly, the Study confirmed the potential feasibility of the Facility and identified no fatal flaws. The MoU parties have agreed to proceed to a more detailed investigation of the project in accordance with the terms of the MoU.

About the key synergies with NTCB:

A number of key synergies can be realised by co-locating E25’s low-emission² technology and process at NCTB, including:

• NCTB operates a sulphuric acid plant at the Chiba production facility, which can supply acid to the proposed project.
• NCTB has substantial ancillary infrastructure, utilities and services that can be provided to the HPMSM project.
• NCTB is located in Tokyo Bay and has private berths that can handle both liquid and bulk cargo, providing important logistics solutions.

The MoU outlines initial terms between E25, NC and NCTB to evaluate the potential to jointly develop the Facility to be located on existing industrial land at the NCTB Chiba site, with final details of the plan, including timeframe and funding, to be determined once a feasibility study has been completed.

The MoU outlines several key steps, including the identification of potential engineering, procurement and construction (EPC) contracts, the finalisation of offtake agreements and the securing of sufficient project finance to reach a targeted final investment decision (FID) date of June 2026.

THE PROPOSED CHIBA SITE

The NCTB site in Chiba offers some unique opportunities for the co-location of an HPMSM facility. In addition to the production of sulphuric acid at the Chiba site, NC also produces sulphuric acid at both their Aichi and Toyama prefecture facilities, as well as other key reagents at the Toyama prefecture facility, all key inputs into the E25 process.

NTCB also generates CO2-free steam via an established steam generator attached to the acid plant. Steam can be supplied to the Facility without the requirement for significant additional capital works. All other required utilities, including natural gas, water, and sewer services are also available at the NCTB site, in addition to substantial ancillary infrastructure and services.

HPMSM IN JAPAN

Automotive Industry

Japan has a long and proud history of automotive excellence, including the production of hybrid and Electric Vehicles (EVs). A number of leading EV battery and precursor manufacturers are also based in Japan. Japan, like many other countries, has designated manganese as a critical mineral and has legislated incentives to establish battery-related industries in Japan. Manganese is becoming an increasingly important input into EV batteries as the technology shifts away from nickel-rich chemistries to high manganese and LMFP (manganese-doped LFP) cathodes. This transition is expected to generate increased demand for high-purity manganese chemicals for use in the production of these batteries as the EV transition accelerates.

ABOUT NISSAN CHEMICAL AND NC TOKYO BAY

Nissan Chemical Corporation is developing new products and businesses by utilising its core technologies as a chemical company with a corporate vision of becoming a corporate group that “contributes to the protection of the global environment and the existence/ development of humanity, offering the value sought by society.”

For more details, please visit https://www.nissanchem.co.jp

NC Tokyo Bay Corporation was originally established in 1967 as Nippon Phosphoric Acid Co. to contribute to the domestic agricultural food production industry. Since 1 April 2023, NCTB has been a wholly owned subsidiary company of NC. As a sulfuric acid manufacturer that uses molten sulphur, NCTB has been an important supplier to various industry fields.

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