U.S. Energy Department pumps $166m into Element 25’s game-changing battery facility

Element 25 Limited, a key player in the battery materials sector, has announced a significant financial milestone with its high-purity manganese project receiving a US$166 million grant from the U.S. Department of Energy (DOE). This grant, awarded under the DOE’s Battery Materials Processing Grant Programme, supports Element 25’s upcoming facility in Louisiana, which will produce battery-grade high-purity manganese sulphate monohydrate (HPMSM). The funding adds to US$115 million already secured from major partners General Motors LLC and Stellantis N.V., bringing Element 25’s total secured funding to over US$280 million.

This grant propels the company’s HPMSM refinery project towards completion, with the aim of supplying crucial materials for the electric vehicle (EV) supply chain in the United States. Element 25’s Managing Director, Justin Brown, said the project marks a major leap forward, positioning the company as a key player in delivering ethically sourced battery materials, aligned with the U.S. government’s focus on building a sustainable and independent battery supply chain.

The company plans to finalise a binding agreement with the DOE to access the full grant, which will fund up to half of the construction costs for the Louisiana facility. Once completed, the facility will produce up to 135,000 tonnes of HPMSM annually, primarily serving the needs of the growing U.S. EV market.

Boost to U.S. battery materials processing

The DOE’s Battery Materials Processing Grant Programme, under which Element 25’s project was selected, forms a core part of the U.S. government’s efforts to bolster domestic capacity in battery materials processing. The programme, funded through the Bipartisan Infrastructure Law, offers up to US$3 billion in grants to support the establishment and growth of the U.S. battery supply chain. The selection of Element 25 for this programme signals the strategic importance of HPMSM to the growing electric vehicle industry.

Element 25’s innovative process to extract HPMSM from manganese ore sourced from its Butcherbird mine in Western Australia reduces energy consumption and waste, setting it apart as one of the lowest carbon-intensity processes globally. This breakthrough technology aligns with the U.S.’s broader commitment to sustainable energy solutions.

Financial stability from key partnerships

In addition to the DOE grant, Element 25’s financing is buoyed by agreements with two automotive giants, General Motors and Stellantis. The company has already secured US$85 million in loan financing from General Motors, alongside offtake agreements to supply GM’s Ultium battery plant with 32,500 metric tonnes of HPMSM annually. Stellantis has also committed to a five-year offtake agreement for 45,000 tonnes per annum, alongside US$30 million in project funding.

These partnerships solidify Element 25’s place in the rapidly expanding EV battery materials market. With growing demand for sustainable, traceable battery components, Element 25’s supply chain model offers automakers a secure source of high-purity manganese, critical for the production of lithium-ion batteries.

Community and economic benefits for Louisiana

The HPMSM facility in Louisiana will not only bolster the U.S. battery supply chain but also offer substantial local economic benefits. The facility, located near Baton Rouge, is expected to generate over 400 construction jobs and create 144 permanent positions once operational. The local economy stands to benefit significantly, with Element 25 committed to hiring skilled workers from Louisiana’s oil and gas industry, including from recently closed refineries.

The project is also backed by a significant incentives package from the State of Louisiana, which recognises the long-term benefits of establishing a sustainable refining facility in the region.

Expert opinion: A critical step for U.S. energy independence

The backing of Element 25’s project by the U.S. Department of Energy reflects the growing need for domestic processing capabilities in critical battery materials. The reliance on foreign supply chains, particularly from China, for battery-grade manganese has been a significant vulnerability in the U.S. push towards renewable energy and electric vehicles. This project offers a crucial step towards overcoming that reliance by creating a sustainable, domestic source of HPMSM.

Industry experts believe that Element 25’s project will not only aid the U.S. in meeting its ambitious EV goals but also set a new standard for sustainability and efficiency in battery materials processing. With its low-carbon footprint, the project provides a blueprint for how future facilities can combine environmental responsibility with industrial innovation.