Proactive’s Tylah Tully breaks down ‘just the Facts’ of Element 25 Ltd (ASX:E25, OTCQX:ELMTF) latest announcements.
The company’s been selected for negotiations for a US$166 million grant from the US Department of Energy under the Battery Materials Processing Grant Program. This funding will support the construction of the company’s proposed high-purity manganese sulphate monohydrate (HPMSM) facility in Baton Rouge, Louisiana. The 230,000 square-foot plant will produce HPMSM, a key material in lithium-ion batteries.
The grant complements US$115 million in financing already committed by Element 25’s offtake partners, General Motors and Stellantis. This includes an US$85 million loan from GM in 2023 and Stellantis’ purchase agreement for 45,000 tonnes of HPMSM annually over five years.
The project is estimated to cost US$289 million, and the grant will cover up to half of the construction costs. Element 25 is working to secure the remaining funding to move the project towards financial close and the start of construction. The project aims to create long-term jobs and supply ethically sourced, IRA-compliant HPMSM.
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