Element 25 Secures $166 Million Grant for Manganese Facility

Element 25 has been awarded a $166 million grant by the US Department of Energy for a battery-grade manganese facility in Louisiana. This funding is a boost to their financing strategy and could positively influence stock prices of Element 25 and its offtake partners.

Date: 28-09-2024

AI Rating: 7

Element 25 has recently been awarded a $166 million grant from the US Department of Energy, which is aimed at enhancing the US battery materials processing sector. This significant funding will support the construction of the company’s battery-grade high-purity manganese sulphate monohydrate (HPMSM) facility in Louisiana.

The $166 million grant is indicative of the company’s potential growth and its strategic financing efforts. Alongside this grant, Element 25 has also secured $115 million from offtake partners General Motors (GM) and Stellantis (STLA). This means that the total financial backing for the project now stands at $281 million, positioning the company favorably for financial close and commencement of construction.

By funding up to half of the construction capital costs for the HPMSM facility, the grant not only enhances Element 25's financial footing but also underscores its role in reducing the US’s dependence on battery materials processed overseas, particularly from China. The project promises to create long-term jobs in Louisiana and improve local economic conditions.

With the anticipated production of 71,650 tonnes of HPMSM annually, this facility is set to significantly contribute to the US electric vehicle supply chain. The innovative processing flowsheet developed by Element 25 emphasizes lower energy consumption and reduced waste, which are critical factors in sustainability-focused markets.

The company has articulated its vision for the future, leveraging this grant to enhance its operational capabilities in a market that is rapidly expanding, particularly in the electric vehicle segment. Overall, this news presents a favorable outlook for Element 25’s stock, indicating positive investor sentiment.

Stocks: E25 GM STLA