ASX-listed Element 25 has taken another step towards generating high-purity manganese sulphate monohydrate (HPMSM) at a planned US facility with global automaker Stellantis investing its first AUD 22.6 million in the company.
The profits from the Stellantis first tranche investment will be used to establish a battery-grade HPMSM plant in Louisiana, with a second AUD 22.6 million payment constituting part of a binding agreement, E25 said in a press release.
This is the second big automotive investment in the manganese company, which already has an arrangement to provide HPMSM to General Motors’ USA Ultium Battery Plants, which includes a $85 million financing facility.
The completion of the first investment tranche is an important step in the total project funding, and when combined with E25’s recently announced $85 million financing facility with General Motors, brings project commitments to $115 million from two top global electric car manufacturers.
Stellantis’ first investment tranche has been completed following the fulfilment of the conditions precedent, with E25 issuing 22,569,967 shares to Stellantis at A$1.00 per share for a total of A$22,569,967.
It comes after E25 announced the signing of a contractual agreement with Stellantis on 9 January 2023, to deliver battery-grade HPMSM from E25’s prospective US-based factory.
This agreement combines take-or-pay offtake agreements from the plant for 45,000 tonnes of HPMSM over five years with $30 million in two tranches of project funding.
Element 25 said it is hoping to start HPMSM supply to Stellantis in 2026, with 5,000 t of HPMSM targeted in the first year of operations, increasing to 10 000 t/y in years two to five.
Founded in 2006, Element 25 is a West Perth-headquartered manufacturer of low-carbon ingredients used in lithium-ion energy storage technologies, with a focus on ESG.
