Element 25 Ltd has secured a senior debt finance facility of up to A$50 million from the Northern Australia Infrastructure Facility (NAIF) to support the expansion of its Butcherbird Manganese Project (BBX) in WA’s Pilbara region.
The funding comprises A$42.5 million in senior debt and a A$7.5 million cost overrun facility, aligning with Element 25’s strategy to scale BBX to a 1.1 million tonne per annum (Mtpa) manganese concentrate operation.
Expanded output
The expanded output will feed the company’s planned high purity manganese sulphate monohydrate (HPMSM) processing facility in Louisiana, US, which recently secured US$166 million in grant funding from the US Department of Energy.
Element 25 managing director Justin Brown said: “Securing this support from the Federal Government’s Northern Australia Infrastructure Facility reaffirms the government’s commitment to developing Australia’s critical minerals sector and Butcherbird’s economic importance to Australia and the Pilbara region of WA.
“Our feasibility studies have confirmed Butcherbird’s pedigree as a long-life manganese concentrate production hub from its 274 million tonne resource, which is integral to our plans for HPMSM in the USA as well as potentially other locations around the world.
“This support from NAIF is critical to our plans to expand Butcherbird to meet this growing demand as the world continues to shift towards electrification and energy transition.
“Batteries will potentially use as much as 10 times more manganese if battery chemistry shifts towards lithium manganese rich, or LMR, chemistries as recently announced by various tier 1 OEMs and battery makers including General Motors, Ford and Posco FM.
“We want to expand Butcherbird to help meet this demand, and look forward to delivering the expansion with NAIF’s support.”
Manganese not allocated for HPMSM production will be sold into the global manganese alloy and steel industries.
The updated feasibility study, released in January 2025, envisages a capital cost of A$64.8 million and forecasts a pre-tax Net Present Value (NPV) of A$561 million and an Internal Rate of Return (IRR) of 96%, with average annual cashflows of A$70.5 million over an 18-year mine life.
All regulatory approvals in
BBX holds all required regulatory approvals under Western Australia’s Department of Water and Environmental Regulation (DWER) and Department of Energy, Mines, Industry Regulation and Safety (DEMIRS), including approvals secured in January and March 2025.
NAIF’s support follows its strategic assessment of BBX in 2024 and reinforces the Federal Government’s commitment to critical minerals development.
The facility positions NAIF as the sole senior secured lender, while Element 25 continues to explore additional funding through offtake prepayment, royalty financing and subordinated debt.
The expansion aligns with industry trends favouring lithium manganese rich (LMR) battery chemistries, which may drive manganese demand up to tenfold compared to current nickel-rich formats.
Element 25’s proprietary flowsheet, to be used in the Louisiana plant, offers low carbon intensity and minimal waste.
Construction of the HPMSM facility is backed by offtake agreements with General Motors and Stellantis, collectively worth US$115 million, and is expected to deliver up to 135,000 tonnes of HPMSM annually to United States electric vehicle supply chains.
Project execution is underway, with key contracts and logistics arrangements advancing.
Completion of formal financing documentation is scheduled to align with the project timeline, targeting commissioning in 2026.