Element 25 Limited (E25) has signed a binding agreement with Stellantis N.V. to supply the latter with battery-grade high-purity manganese sulphate monohydrate (HPMSM) from E25’s proposed U.S.-based HPMSM processing facility.
The deal combines take or pay offtake commitments for 45 kilotonnes of HPMSM from the facility over five years with $45.21 million in two tranches of project funding towards the facility capital cost.
Tranche 1 of the funding consists of a $22.6 million equity investment in E25.
Under the agreement, E25 is required to accomplish an HPMSM feasibility study for the planned facility to Stellantis’ reasonable satisfaction.
It added that the parties have also agreed to extend the expiry date for the study to 30 June to provide sufficient time for the review and the satisfaction of the remaining conditions and allow for the first tranche of project funding to be completed.
The parties previously completed conditions related to the effort, including Stellantis completing a technical due diligence process to its satisfaction and a decision by the E25 board to proceed with the project based on the study.
Stellantis will have 20 days to review the study prior to accepting, following its satisfaction with the conditions previously set.
