Mineral resource company Euro Manganese has entered into an offtake term sheet with FeMoCat for the sale of high-purity manganese sulphate and magnesium carbonate from its Chvaletice Manganese Project in the Czech Republic.
Under the agreement, FeMoCat will utilise the products for its catalyst manufacturing and Synthetic Hydrotalcites production in Pardubice.
Euro Manganese's President and CEO, Matthew James, remarked, "The demand for Euro Manganese’s high-purity products from the Chvaletice Project continues to accelerate with companies recognising the impending deficit and securing their requirements via an offtake term sheet."
FeMoCat, a global catalyst manufacturer headquartered in Dublin with plants in the Czech Republic and China, will use these locally sourced raw materials for expansion at its Pardubice plant.
President and CEO Tommy Heino added, "This offtake secures raw materials for FeMoCat's expansion at Semtinzone/Rybitvi in Pardubice, for our catalysts and Synthetic Hydrotalcite production."
Deliveries from the Chvaletice Project are set to commence alongside the project’s production ramp-up for an initial term of seven years, with the potential for renewals.
Pricing for the agreement will meet the project's debt finance banking covenants, incorporating a take-or-pay basis for high-purity manganese sulphate and market-related pricing for magnesium carbonate.
Euro Manganese aims to position itself as a leading producer in the electric vehicle sector, recycling old tailings from a decommissioned mine.
The Chvaletice Project is the only significant manganese resource in the EU, signalling a commitment to sustainable, low-carbon battery material production.