Element 25 Secures $166M US Grant for High-Purity Manganese Plant

Element 25

Louisiana Refinery to Strengthen North American Battery Supply Chain

Element 25 (E25) has received a $166 million grant from the US Department of Energy (DOE) to develop its high-purity manganese sulphate monohydrate (HPMSM) refinery in Louisiana. The project, set to begin construction on April 1, 2025, will refine manganese concentrate from the Butcherbird mine in Western Australia. This initiative aligns with the US government’s $3 billion plan to boost domestic battery materials production, reducing reliance on Chinese supply chains.

Strategic Financing and Automaker Partnerships

The DOE grant supports a critical part of Element 25’s financing strategy, supplementing an $85 million loan from General Motors (GM) and a $30 million investment from Stellantis in 2023. Under these agreements, E25 will supply 32,500 t/yr of HPMSM to GM and 10,000 t/yr to Stellantis. These partnerships reflect automakers’ efforts to secure stable battery material supplies amid increasing demand for manganese-rich battery chemistries.

Rising Demand for Battery-Grade Manganese

In 2024, global HPMSM production reached 300,000 tonnes, but analysts forecast a 1.2-1.3 million t/yr supply deficit by 2034 due to surging EV battery demand. The Louisiana refinery positions Element 25 as a key supplier in the North American EV supply chain, addressing the growing need for high-purity manganese in lithium-ion battery cathodes.