Highlights

  • Element 25 shares rose 4.35% to AUD 0.30 on 13 May 2026, extending one-year gains to 30.43%.
  • The company provided a progress update on its Butcherbird Expansion Project in Western Australia.
  • The expansion targets manganese concentrate production of 1.1 million tonnes per annum.
  • Mechanical completion and commissioning remain scheduled for Q1 2027.
  • Major plant equipment orders have been placed, including crushing circuits, conveyors, stackers and screens.
  • Element 25 continues progressing project financing activities alongside procurement and construction planning.

Element 25 Ltd (ASX:E25) shares moved higher during the morning session on 13 May 2026 after the company released a detailed development update on its Butcherbird Expansion Project (BBX) in Western Australia.

The stock gained 4.35% to AUD 0.30, extending its broader 12-month performance to a gain of approximately 30.43%, as investors appeared to respond positively to continued progress across procurement, construction planning, financing and commercial negotiations tied to the project.

The company confirmed that the Butcherbird Expansion Project remains on track for mechanical completion and commissioning in the first quarter of calendar year 2027.

Expansion Project Targets Higher Production Capacity

Element 25 is progressing an expansion of its wholly owned Butcherbird Manganese Project in Western Australia, targeting manganese concentrate production of 1.1 million tonnes per annum.

The expansion is based on the company’s updated January 2025 feasibility study and supported by an updated ore reserve estimate of 101.4 million tonnes grading 10.4% manganese, equivalent to 10.54 million tonnes of contained manganese.

According to the company, the reserve base supports a projected mine life exceeding 18 years at the planned production rate.

The increased production is intended to support both traditional ferroalloy markets used in steelmaking and long-term feedstock Supply for Element 25’s proposed high-purity manganese sulphate monohydrate (HPMSM) Facility in Louisiana, United States.

Procurement Activities Continue Advancing

One of the key developments highlighted in the update was progress in procurement and equipment supply activities.

Element 25 confirmed that the first major plant item, a custom-built logwasher manufactured by KISA, has already been shipped and is currently in transit to the Butcherbird site.

The company stated that the logwasher was delivered on schedule following completion of factory testing and quality assurance checks.

Designed for high-throughput processing, the unit has a capacity of 600 tonnes per hour and includes a 10,000 x 3,500 mm trough capable of washing material up to 250 mm in size.

Beyond the logwasher, Element 25 confirmed that orders have already been placed for several major plant components, including:

  • Crushing circuits
    • Conveyors
    • Stackers
    • Thickener systems
    • Screens
    • Apron feeders

The company noted that securing these orders early helps reduce exposure to potential cost escalation risks and supports adherence to the current project timeline.

Additional Equipment Packages Nearing Award

Element 25 also stated that several remaining procurement packages are progressing through final review and negotiation stages.

Preferred vendors have reportedly been identified for key components including:

  • Dense media separation (DMS) drums
    • Cyclone clusters
    • Additional screen packages

The company indicated that final orders are expected to be placed once minor technical and commercial matters are resolved.

Construction steel suppliers have also been shortlisted, with fabrication expected to be divided among multiple contractors to reduce scheduling risks and maintain flexibility during the construction phase.

Construction and Contracting Milestones Progressing

The company confirmed that construction tender processes are continuing to advance.

After completing an expression of interest process, Element 25 shortlisted qualified construction contractors with experience relevant to the BBX project.

The construction scope includes:

  • Civil and earthworks
    • Structural, mechanical and piping works
    • Electrical and instrumentation works

Element 25 stated that the preferred contracting strategy involves appointing a single head contractor supported by specialist subcontractors where required.

According to the current schedule, construction contracts are expected to be awarded during Q2 2026, while mobilisation activities are targeted for Q3 2026.

Offtake Discussions Continue

Commercial discussions linked to future manganese sales are also progressing.

The company confirmed that negotiations remain ongoing with selected offtake partners for increased production volumes from the Butcherbird project.

Management stated that discussions are focused on finalising commercial terms and broader agreement frameworks.

Element 25 noted that its preferred structure involves placing the project’s entire production Volume with a single counterparty under a take-or-pay arrangement.

The company believes this structure could support competitive market positioning and provide Revenue visibility aligned with the project’s financial model.

The preferred offtake partner is anticipated to be selected during Q2 2026.

Mining Services Agreement Nearing Completion

The company also provided an update on mining services negotiations.

Following a competitive tender process and contractor review, Element 25 confirmed that a preferred mining services contractor has now been identified.

Commercial negotiations are currently underway, with the company expecting to finalise the mining services agreement before the end of Q2 2026.

Management described the agreement as another important milestone in progressing the overall expansion strategy.

Financing Activities Continue Alongside Development

Alongside construction and procurement progress, Element 25 continues advancing project financing activities.

The company previously secured approval from the Northern Australia Infrastructure Facility (NAIF) for a Debt package of up to AUD 50 million to support the Butcherbird expansion.

The funding package includes:

  • AUD 42.5 million in senior debt
    • AUD 7.5 million in cost overrun support

Element 25 stated that it is continuing to evaluate additional financing arrangements required to complete the overall funding solution for the BBX project.

The company has also been working with consultancy group SLR to support Due Diligence processes involving NAIF and potential subordinated financiers.

According to management, the work is intended to support progress toward financial close.

Project Schedule Remains Unchanged

Importantly for investors, Element 25 confirmed that all required permits remain in place and that the project schedule remains unchanged.

Mechanical completion and commissioning are still forecast for Q1 calendar year 2027.

The company stated that project management systems continue to track deliverables, procurement timelines and construction sequencing through detailed work breakdown structures and project controls.

Management also noted that procurement agreements include delivery and fabrication commitments designed to align with the broader construction schedule.

Geopolitical and Supply Chain Risks Being Monitored

Element 25 acknowledged that global geopolitical developments, including ongoing tensions in the Middle East and shipping route disruptions, continue to be monitored.

However, the company stated that no material impacts to the project have been experienced to date.

To reduce potential exposure to supply chain disruptions, Element 25 said it is implementing diversified sourcing strategies and forward procurement measures.

Technology and Systems Development Underway

The company also provided updates on internal operational systems being developed for the expansion.

Element 25 confirmed it has selected Microsoft Dynamics 365 as its preferred enterprise resource planning (ERP) system.

Contracts have been awarded to Ray Business Technologies and Barter Technologies to assist with implementation.

Phase 1 of the ERP rollout remains on track for Q2 calendar year 2026, ahead of the transition toward operational readiness.

The company is also integrating Microsoft Fabric, Power BI and AI-related technologies to support operational oversight across the project.

About Element 25

Element 25 is an ASX-listed manganese company focused on battery materials and critical minerals development.

Its flagship asset is the wholly owned Butcherbird Manganese Project in Western Australia.

Alongside manganese concentrate production, the company is also advancing plans to commercialise battery-grade high-purity manganese sulphate monohydrate for electric vehicle battery applications.

Element 25’s proposed Louisiana HPMSM facility has received support from General Motors, Stellantis and the US Department of Energy through grant funding initiatives.

The company believes future shifts toward lithium manganese-rich battery chemistries could significantly increase manganese Demand within electric vehicle supply chains.

Investor Focus Turns to Project Delivery

Following today’s update, investors are likely to continue monitoring several key milestones tied to the Butcherbird expansion project.

Areas of focus may include:

  • Financial close activities
    • Offtake agreement execution
    • Construction contract awards
    • Procurement delivery timelines
    • Progress toward commissioning in Q1 2027

The market reaction suggests investors viewed the update as a favourable indication that project execution remains aligned with previously outlined development plans.