Element 25 Limited (E25 or the Company) (ASX:E25) is pleased to present its Quarterly Report and Cash Flow Report.
Quarterly Highlights
High Purity Manganese
Key Offtake and Financing Agreement Signed:
- Element 25 Ltd (E25) and Stellantis N.V. (NYSE / MTA / Euronext Paris: STLA) (Stellantis) sign definitive agreements for the supply of battery-grade high purity manganese sulphate (HPMSM) for Stellantis’ EV battery requirements.
- E25 to supply up to 45,000t HPMSM over five years with provisions to increase volumes and extend term.
- Stellantis to part-fund development of E25’s HPMSM processing facility with US$30M investment in two tranches.
- Combined offtake/financing solution with OEMs and cathode manufacturers remains preferred strategy to deliver Project.
Project Location
- The United States Inflation Reduction Act (IRA) to inject hundreds of billions of dollars into clean energy EV incentives.
- Geopolitical shift due to the IRA causes perceptible shift in appetite for North American battery materials including HPMSM.
- Discussions with OEMs drives potential shift to a USA base case for the HPMSM Feasibility Study.
- Multiple sites in the USA being actively assessed to minimise capital, explore local incentives, prioritise local reagent supply, investigate co-location opportunities and optimise supply chains.
- E25 appoints Worley Group to lead the engineering studies for FS localisation for a USA site.
- Ernst & Young to advise on potential federal, state and local funding support for a USA based HPMSM Facility.
- Sarawak Malaysia remains a favourable location for a second HPMSM facility subject to approval of (government incentives).
- Feasibility Study (FS) delivery date shifted to Q1 CY23 to accommodate USA activities, overall project timeline on track.
Process Test Work
- Purification test work produced very high-quality HPMSM liquor. Continuous crystallisation test in progress.
- Test work supports future ambition to offer an ultra-high purity manganese sulphate monohydrate (UHPMSM) product.
Corporate
- Heavily oversubscribed A$35 million Placement completed to fund HPMSM feasibility, engineering optimisation works and costs, as well as working capital.
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