Element 25 Ltd (ASX:E25, OTCQX:ELMTF) has met all prerequisites for the Louisiana State Industrial Tax Exempt Program (ITEP), which means it is approved for a substantial incentive package to support the planned high-purity manganese sulphate (HPMSM) processing facility in Louisiana.
Thresholds surpassed
The current development plan for the company’s lithium-ion battery-grade manganese processing facility surpasses all required thresholds to secure state support.
Earlier this year, professional services firm EY estimated the total value of the state incentives at approximately US$57 million.
Louisiana governor John Bel Edwards, who ratified the incentive agreement between E25, the Louisiana Department of Economic Development and the Louisiana Board of Commerce and Industry, said: “Louisiana’s long-standing status as a national pacesetter in foreign direct investment is no accident.
“It is the result of sustained relationship building. Companies such as Element 25 see the strategic advantages of doing business in our state, from top-notch logistics to our skilled, dynamic workforce.”
This cash injection will bolster E25’s ambitious project for a lithium-ion battery-grade HPMSM processing facility in Ascension Parish, Louisiana.
Months of engagement
The result concludes months of extensive engagement with state and local governments and community members, to highlight the prospective benefits of the proposed facility.
The agreed incentive package encompasses direct and indirect financial support measures. These incentives are expected to significantly reduce the capital required to construct the facility.
E25 has committed to substantial investments in the project, including a minimum expenditure of US$211.64 million on the facility’s infrastructure.
Additionally, the company has pledged to prioritise local labour and manufacturing resources during construction and to create and maintain 65 jobs, with an annual payroll of US$5.85 million.
The facility is anticipated to create 220 new direct jobs with average annual salaries exceeding US$90,000, and an estimated 408 new indirect jobs, culminating in 628 new jobs in the Capital Region.
Element 25 plans to import manganese concentrate from its Butcherbird Mine in Western Australia for the production of EV battery materials.
The facility’s proprietary production process is designed to produce three reusable by-product streams, potentially used as fertiliser feedstocks, ferroalloy feedstock and in various industrial operations, thereby minimising waste.
Moreover, the majority of the reagents for the process will be sourced from within Louisiana, further integrating the project with the local economy.