Element 25 Ltd (ASX:E25, OTCQX:ELMTF) is seeking to partner with Nissan Chemical Corporation (NC) to explore the establishment of a High Purity Manganese Sulphate Monohydrate (HPMSM) facility in Chiba prefecture, Japan.
The company has entered into a non-binding Memorandum of Understanding (MoU) with NC and its subsidiary NC Tokyo Bay Corporation (NCTB) to complete a feasibility study for a battery-grade HPMSM facility at the existing NCTB site
Global network of facilities
This partnership is part of Element 25's broader strategy to establish a network of HPMSM facilities worldwide, with the first plant planned for Louisiana, USA, in collaboration with General Motors (NYSE:GM) and Stellantis.
The MoU dovetails with Japan’s strategic focus on manganese as a critical mineral, especially in the context of the automotive industry’s shift towards electric vehicles (EVs).
The proposed HPMSM facility would cater to the growing demand for manganese in battery production, as the industry transitions from nickel-rich chemistries to high-manganese and LMFP (manganese-doped LFP) cathodes.
This proposed facility would leverage Element 25's low-emission technology at Nissan Chemical's existing Tokyo Bay site.
Ideal location
This location is ideal for the facility, offering the availability of sulphuric acid from an existing plant, robust ancillary infrastructure and comprehensive logistics solutions through private berths capable of handling both liquid and bulk cargo.
Element 25 managing director Justin Brown said: “We are excited to work with a highly respected company like Nissan Chemical Corporation and NC Tokyo Bay Corporation to study the opportunity to locate a future plant in Chiba Prefecture.
“The synergies of co-location are significant for both parties and the utilisation of existing industrial land and facilities fits perfectly with our vision to have a minimal ESG impact.
“This is, of course, possible thanks to our unique flowsheet which virtually eliminates solid waste.
“Japan and Australia have a long history of trade and share common goals and this would be a fantastic opportunity to continue and strengthen those ties into the future.”
The MoU outlines a comprehensive feasibility study to assess the development of the facility, with key milestones including engineering, procurement and construction (EPC) contracts, scoping and feasibility studies, offtake agreements and securing project finance.
The target date for a final investment decision (FID) is set for September 2026.