Element 25 Limited (ASX:E25) has signed a binding agreement with Stellantis NV to supply battery-grade high purity manganese sulphate monohydrate (HPMSM) from E25’s proposed USA-based HPMSM processing facility.
The agreement combines take or pay offtake commitments for 45,000 tonnes of HPMSM from the facility over five years, with US$30 million in two tranches of project funding towards the facility capital cost.
Performance of the parties under the binding term sheet is conditioned on satisfactory completion of technical due diligence and a feasibility study.
Element 25 Managing Director Justin Brown said: “Stellantis’ support for Element 25’s high purity battery-grade manganese sulphate project is a fantastic endorsement by one of the world’s largest automakers and supports our plans to become a globally significant long-term supplier of battery materials to meet growing global demand.
“We are fully aligned with Stellantis’ decarbonisation and electrification goals, which represent some of the most ambitious in the industry and E25 have a pathway to reach agreed net zero carbon emission goals under this deal.
“This is an important step in the delivery of our first production module which will combine Element 25’s innovative processing flowsheet and the high quality, ethically sourced manganese concentrate from our 100%-owned Butcherbird Project in Western Australia to deliver sustainable, ethically sourced battery grade manganese to the electric vehicle industry.”
Global automaker and mobility provider Stellantis provides many products and services, including Abarth, Alfa Romeo, Chrysler, Citroën, Dodge, DS Automobiles, Fiat, Jeep®, Lancia, Maserati, Opel, Peugeot, Ram, Vauxhall, Free2move and Leasys.