What did Element 25 (ASX:E25) announce regarding its U.S. operations?

Element 25 announced a comprehensive review of its project execution plan for a planned high-purity manganese sulphate monohydrate (HPMSM) facility in Louisiana, U.S.

Why did Element 25 (ASX:E25) delay its Louisiana refinery project?

The strategic pivot is driven by cooling global EV demand and emerging battery chemistry preferences from major original equipment manufacturers (OEMs).

How does the contract renegotiation with General Motors affect Element 25?

Because Element 25 missed its original delivery windows, it is actively renegotiating its commercial supply contract with General Motors (GM).

What is the status of Element 25's partnership with Stellantis?

Element 25 is running parallel commercial discussions with Stellantis to realign their procurement and supply arrangements. Similar to the GM situation, these talks aim to adjust delivery timelines and adapt to Stellantis’s current EV production schedules and battery chemistry needs.

What specific areas will the Element 25 strategic review cover?

The operational assessment will evaluate site selection, existing supply contracts, construction timelines, and the completion of project financing. It will also require updating the terms of its US$166 million grant agreement with the U.S. Department of Energy to reflect the new timelines.

Is the U.S. government still funding the Element 25 (ASX:E25) facility?

The project retains its US$166 million grant allocation from the U.S. Department of Energy, but this funding is not entirely secure until grant agreements are successfully updated. The review must realign the milestone schedules with the government to ensure the capital remains available.

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Element 25 reviews US manganese project as EV demand shifts

Written by Isaac FrancisPublished May. 26 2026Last Updated May. 26 2026

Australian manganese producer Element 25 (ASX:E25) said it is launching a comprehensive review of its project execution plan for a high-purity manganese sulphate monohydrate facility in Louisiana, U.S.

The company attributed the pivot to rapidly shifting electric vehicle demands and emerging battery chemistry trends that have materialised over the past 12 months.

The proposed refinery, designed to supply a critical raw material for lithium-ion batteries, is being developed through a high-profile partnership with automotive giants General Motors and Stellantis.

The project has also secured backing via a US$166 million grant from the U.S. Department of Energy.

However, following project schedule disruptions that caused delivery timelines to be missed, Element 25 confirmed it is actively renegotiating its commercial contract with GM. Parallel discussions are also underway with Stellantis to realign their procurement arrangements.

According to Element 25 Managing Director Justin Brown, the review is vital to ensure the company's strategy matches current demand signals and evolving battery technologies.

The operational assessment will evaluate site selection, supply contracts, financing completion, construction timelines, and necessary updates to federal grant agreements.

Element 25 is forging ahead with the expansion of its flagship Butcherbird operations in Western Australia.

The domestic growth is intended to sustain feedstock supply for the eventual Louisiana plant while continuing to service customers within the traditional, established global ferroalloys and steel manufacturing markets.