Element 25 reviews US manganese project as EV demand shifts

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.