Element 25 Ltd (ASX:E25) has partnered with sustainable supply chain traceability provider Circulor Ltd, to manage real-time traceability of its manganese products and enable E25 to create the first ESG-transparent manganese supply chain.
The partnership will play an important role in E25’s efforts to create zero-carbon manganese, a goal the company has described as central to its strategic business pathway.
ESG compliance and transparency initiatives are becoming progressively more important as governments and suppliers become more selective about where they source their materials from, especially in the energy storage and electric vehicle battery sectors.
“Minerals industry is evolving”
“The collaboration between Circulor and Element 25 is a fantastic example of the way the minerals industry is evolving to provide better traceability and accountability as it works tirelessly to provide the new energy sector with sustainable raw materials to power the global energy transition away from fossil fuels,” Element 25 managing director Justin Brown said.
“It reinforces E25's commitment to forging a pathway to Zero-Carbon Manganese production from the Butcherbird Project.”
With Circulator’s Traceability-as-a-Service technology, E25 will offer real-time, digitally available data on ESG metrics, including CO2 intensity and sustainability of energy sources, to downstream markets and offtake partners.
Sustainability a step closer
Circulor CEO Douglas Johnson-Poensgen said: “We are thrilled to support Element 25 in their ambition to bring to market Zero Carbon Manganese.
“They are demonstrating that with real-time transparency, it is possible to work together with downstream customers to bring sustainably produced battery materials to market.
“With E25 joining the Circulor platform, Circulor’s network of battery raw material suppliers and customers gets stronger, and the whole industry’s goal of greater sustainability becomes closer within reach.”
The traceability and ESG frameworks provided by Circulor will enable E25 to demonstrate its efforts to fulfil the United Nations’ Sustainability Development Goals and the European Commission’s Battery Regulation.
Manganese is emerging as an increasingly important ingredient for EV batteries, with potential supply constraints and costs for nickel and cobalt forcing battery manufacturers to look to high manganese cathodes to produce the vast amount of cathode material required by the EV industry in coming years.
By positioning the company in the zero-carbon space, Element 25 gains wider entry to the burgeoning electric vehicle battery market, which is expected to be worth some US$152.9 billion by 2028 with a compounding annual growth rate (CAGR) of 28.1%.
About the companies
Circulor describes itself as the leading sustainable supply chain traceability provider. The company provides an enterprise software platform, which creates a reliable chain of custody of materials and attaches greenhouse gas (GHG) emissions and other ESG data directly to the flow of materials.
Element 25 is developing a world-class manganese resource at the 100%-owned Butcherbird Project in Western Australia to produce high-quality manganese concentrate for export markets.
Butcherbird Manganese Deposit is Australia’s largest onshore manganese resource comprising large tonnages of near-surface manganese oxide ore in seven deposits.
The project also has some excellent infrastructure advantages with a gas pipeline and main bitumen highway passing directly adjacent to and through the mineralised envelope.