Delays or Disruptions Could Challenge Element 25’s Ambitious Battery Materials Growth

Strategic Engineering Partnership

Element 25 Limited (ASX, E25) has taken a significant step forward in its growth trajectory by appointing Perth-based Altris Engineering to lead the detailed engineering design and execution of the Butcherbird Expansion Project (BBX) in Western Australia. This collaboration marks a critical phase in scaling up production capacity at the Butcherbird manganese mine, located in the resource-rich Pilbara region.

Altris Engineering, known for its multidisciplinary expertise and strong track record in the Australian mining sector, will integrate closely with Element 25’s project team. Their combined efforts will focus on detailed engineering, procurement, project management, and construction support, ensuring the expansion is delivered efficiently and to high technical standards.

Expansion Details and Financial Backing

The BBX aims to increase manganese ore production to 1.1 million tonnes per annum, up from current levels, with an estimated capital expenditure of AU$64.8 million. This expansion is fully approved under Western Australian regulatory frameworks, including environmental and mining authorities, providing a clear path to execution.

Funding for the project is well underway, supported by a recent AU$10 million share placement and a AU$50 million senior debt facility secured from the Northern Australia Infrastructure Facility (NAIF). These financial commitments underscore confidence in the project’s robust economics, highlighted by a January 2025 feasibility study projecting a pre-tax net present value of AU$561 million and an internal rate of return of 96%.

Linking Australian Manganese to US Battery Markets

Beyond traditional steel industry demand, the increased manganese output from Butcherbird is strategically aligned with Element 25’s plans to supply its high-purity manganese sulphate monohydrate (HPMSM) processing facility under development in Louisiana, USA. This facility, supported by a US$166 million grant from the U.S. Department of Energy and offtake agreements with automotive giants General Motors and Stellantis, aims to produce critical battery materials for the rapidly growing electric vehicle (EV) market.

Element 25’s proprietary processing technology promises to deliver HPMSM with the lowest reported carbon intensity globally, addressing growing demand for ethically sourced, low-carbon battery inputs. The company’s innovative approach also positions it to benefit from emerging shifts in battery chemistry, particularly the move towards lithium manganese rich (LMR) batteries, which require significantly higher manganese content than traditional high-nickel cells.

Looking Ahead

The Butcherbird Expansion Project is a cornerstone of Element 25’s broader “Design One Build Many” commercialisation strategy, envisioning multiple HPMSM processing hubs supplied by its Australian manganese resources. The partnership with Altris Engineering and the robust financial backing provide a strong foundation for the company’s ambitions to become a leading low-carbon battery materials manufacturer on the global stage.