Element 25 Ltd (ASX:E25)’s feasibility study for the production of high-purity battery-grade manganese sulphate monohydrate (HPMSM) from its 100%-owned Butcherbird Project is on track for delivery next month.
The company is confident that the process reliably generates a battery-grade HPMSM product. Indeed, this finding has industry endorsement from multiple potential offtake partners.
Pilot-scale purification test-work in North American facilities has confirmed the flowsheet parameters for engineering design.
A crystallisation and separation test program in a USA test laboratory to confirm equipment design is scheduled for later this month.
A final 10-day continuous steady-state test program will get underway in late November to support the delivery of the feasibility study.
Strong on ESG
The company’s tight product specifications and reduced carbon footprint are set to future-proof the product against increasingly high purity specifications, as well as tougher ESG requirements as battery technologies evolve.
The process uses a plant-based principal reagent and the production flowsheet largely eliminates solid waste, both of which will contribute to a reduced environmental footprint at all stages of the process.
Project team formed
E25 has appointed Neil Graham as VP Battery Materials and he will lead the development team responsible for project execution. Chief operating officer (HPMSM) Doug Flanagan will work closely with Graham to deliver the critical first module of the global roll-out strategy.
Additionally, Sias Jordaan has been appointed VP Battery Materials Marketing and is tasked with closing and managing the product offtake and financing strategy.
The company is pursuing a combined offtake and financing solution with Original Equipment Manufacturers (OEMs) and cathode manufacturers, which will provide substantial project funding.
The hope is that the project offtake and financing strategies will be finalised in line with the completion of the feasibility study in December.
Location scouting
The company is investigating sites as part of its mission to develop multiple processing locations to serve the rapidly expanding lithium-ion battery material markets in different geographic regions. The short-term focus is on Asia and North America.
It is also mindful of the business case for HPMSM production from an Australian manganese source given prevailing macroeconomic and geopolitical influences.
These include widespread efforts to electrify the global vehicle fleet, along with supply chain sustainability, scrutiny on material provenance and a move towards diversifying the source of supply of critical minerals.
E25 shares are up 5.24% in early trade to A$1.305.
Why HPMSM?
HPMSM is the highest purity battery-grade manganese chemical used in lithium-ion batteries and demand for this specialty material is expected to grow rapidly in coming years in line with the growth in the production of Electric Vehicles (EVs).
Adding manganese to the popular lithium iron phosphate (LFP) formula is also becoming more widely adopted, as it increases the voltage and energy density of the battery cells, which is why LMFP – an LFP cathode with around 25% elemental manganese – is becoming an important option for some battery suppliers.
The company’s board is mindful that sustainable and ethical production considerations will become an increasingly important factor in sourcing strategies across the globe.
In western markets, battery makers are looking to manganese-rich cathode chemistries to help solve the supply chain bottleneck for cathode materials.