Highlights

  • Revised terms for the US$166 million U.S. Department of Energy grant support a revised development pathway for the Louisiana HPMSM Project.
  • Element 25 and Stellantis agreed in principle on revised offtake and prepayment arrangements.
  • Supply and financing agreements with GM were mutually terminated.
  • The company is participating in a U.S. Defense Industrial Base Consortium critical minerals proposal round.

Element 25 Limited (ASX:E25) has provided a development update on its planned high-purity manganese sulphate monohydrate (HPMSM) project in Louisiana. The update covers revised government grant terms, changes to its automaker partnerships and a broader approach to project financing.

Revised Grant and Offtake Arrangements

On 7 July 2026, Element 25 announced revised terms for its US$166 million grant under the U.S. Department of Energy's Battery Materials Processing Grant Program. The changes cover scope of work, budget-period tasks and milestones, and are mainly administrative and scheduling in nature. The company is formalising the updated grant documentation.

Element 25 and Stellantis have agreed in principle on revised HPMSM offtake and prepayment arrangements to match the updated execution plan and schedule. Definitive amendment documents are still to be executed.

GM Agreements and Financing Approach

The supply agreement, credit agreement and related letter agreements signed with GM in June 2023 were mutually terminated. This included cancellation of GM's term loan commitments and release of related security. The parties remain engaged on possible future HPMSM supply opportunities.

Managing Director Justin Brown said the project is advancing in a materially different market, policy and funding environment than in 2023, and that the revised structure provides greater flexibility in financing. The company is assessing project finance debt, strategic investment and project-level participation alongside existing government support.

U.S. Critical Minerals Focus

Element 25 has made an initial submission under the U.S. Defense Industrial Base Consortium's critical minerals round two request for proposals, which names high-purity and electrolytic manganese among four commodities. There is no assurance of an award.

The company also cited International Energy Agency data showing about 108 GW of new battery storage deployed globally in 2025, around 40% more than in 2024. Element 25 continues to operate its 100%-owned Butcherbird Manganese Project in Western Australia.

Key Takeaways

  • The Louisiana HPMSM project is moving forward under a revised development pathway.
  • Stellantis remains an offtake partner on revised terms, pending definitive documents.
  • The end of GM agreements has led the company to broaden its financing options.
  • U.S. critical minerals policy offers potential additional support, without certainty of funding.