Element 25 Ltd (ASX: E25, OTCQX: EMTF) collaborates with Veolia North America to secure a site for a high-purity manganese sulfate monohydrate (HPMSM) refinery in Louisiana, USA. U. S.
They have signed a binding term sheet (TS) that will see E25 gain approximately 35 acres of land in Burnside, Ascension Parish, adjacent to Veolia’s existing sulfuric acid production site.
Access to resources
This site selection facilitates access to critical resources, such as sulphuric acid, which Veolia will supply to E25 at predetermined prices for 20 years per pipeline.
The agreement includes terms to ensure the return of natural gas, water and water facilities throughout the acquisition of the land. In addition, a transient garage domain will be leased to Veolia during the construction phase of the refinery.
This milestone is part of E25’s largest Louisiana HPMSM task and marks significant progress as the company moves forward to finalize definitive agreements, secure task financing, and reach a final investment resolution (FID) by August 30, 2024.
“A step forward”
The next key step in the task will be to obtain the air permit, which is to start construction.
“E25 aspires to be a leader in high-quality, vertically integrated, traceable, ESG and IRA-compliant battery fabrics for the global electric vehicle industry,” said Justin Brown, CEO of Element 25.
“The structure of our HPMSM facility in the U. S. The U. S. Highway, the first of its kind there, requires an allocation site with mandatory utilities and access to sulfuric acid as a key reagent, to allow the allocation to continue.
“Veolia meets those needs and we are delighted to have signed this TS with Veolia, which is a vital step in the execution of the project. “
Main final points of the agreement
The termsheet considers several concurrent definitive agreements, the final touch of which is contingent on the execution of those contracts, obtaining funding from the assignment, and progression through the E25 Board of Directors of an IDF through August 30, 2024, with an option to extend. by mutual consent of the parties involved.
The final agreements to be executed until June 30, 2024 in the SC include:
“As a component of our ‘Green Up’ strategy, we are pleased to contribute to the vehicle electrification price chain along Element 25,” said Stu Thomas, Veolia North America Executive Director, Sustainable Energy Solutions.
“This operation will be complementary to our facility in Burnside, will bring a positive economic effect to Ascension Parish and will also have long-term social benefits for the energy transition.
Creating new synergies
E25’s civil engineering operations for the HPMSM project are located at Veolia, providing synergies that enhance the site’s long-term competitiveness.
Under the sulfuric acid source agreement, Veolia will secure a robust, long-term source of sulfuric acid at agreed rates. The E25 air permit application is expected to be approved soon, with Veolia indexed as the assignment location on the application. A key detail to streamline the approval process.
The execution of the SC plays a role in merging those elements to maximize the allocation schedule. Securing the allocation site marks a significant milestone in E25’s agreements with General Motors (NYSE: GM), which has committed $85 million in senior secured debt financing for the Louisiana allocation. This investment is made in parallel with the commitment of E25’s other financial and purchasing partner, Stellantis N. V.
Project investment and detailed engineering efforts are progressing as the HPMSM team progresses the task towards FID and the start of task delivery.
The E25 Process
E25 belongs to the Butcherbird manganese allocation in Western Australia, a wholly-owned company that generates medium-grade, high-silica manganese ore. The company intends to expand its production capacity to approximately 1. 1 million tons per year to serve new classics and emerging energy markets.
In addition to its mining operations, E25 is embarking on the production of battery-grade HPMSM, a critical component of vehicle batteries.
The company has developed a state-of-the-art flowsheet to convert Butcherbird manganese concentrate into high-purity HPMSM. This patented generation especially reduces energy consumption, virtually eradicates the generation of artificial waste and achieves the world’s lowest carbon intensity for HPMSM production, according to publicly reported data.
This state-of-the-art procedure only improves the operational efficiency of Element 25, but also supports the production of transparent, traceable, and ethically sourced HPMSM materials for the U. S. market.
In keeping with this strategy, Element 25 is a dedicated processing facility in Louisiana. This facility is designed to produce up to 135,000 tons per year of HPMSM, particularly targeting U. S. electric vehicle (EV) supply chains. U. S.
E25 is backed by partnerships with major automakers General Motors LLC and Stellantis N. V.
Learn more about Proactive Investors AU
Disclaimer