Element 25 Advances Butcherbird Manganese Expansion with Key Equipment Arrival Ahead of Q1 2027 Start

Logwasher Arrival Marks Significant Construction Progress for Butcherbird Expansion

The delivery of the custom-engineered logwasher from KISA, Germany, represents a critical advancement in Element 25's Butcherbird Expansion Project. Arriving at Fremantle Port in June 2026, the equipment underwent post-shipment inspections before being moved to secure storage and will be transported to the site following the construction schedule. This first major plant item delivery highlights the company’s capability to meet project timelines and secure essential long-lead equipment for expansion.

Designed specifically for Element 25’s operational needs, the logwasher features a 600-tonne per hour capacity with a 10 metre by 3.5 metre main trough housing two large counter-rotating shafts. It includes custom hardened paddles capable of washing feed material up to 250 millimetres, hydraulic height adjustment to regulate scrubbing intensity, and advanced washing technology for enhanced clay removal. Reinforced shafts are built to endure the abrasive conditions typical of manganese ore processing, offering a performance and durability upgrade for the Butcherbird operation.

Additional Equipment En Route and Procurement Near Completion

Beyond the logwasher, Element 25 is progressing procurement of multiple long-lead equipment items for the Butcherbird Expansion Project. Primary and secondary sizers from Mining Machinery Developments (MMD) are currently en route to Western Australia, with orders placed for other main plant components such as apron feeders, conveyors, stackers, thickeners, and screens. This phased procurement ensures equipment delivery aligns with construction schedules, minimizing onsite storage costs and reducing schedule risks.

Remaining packages, including structural steel, pumps, and drives, are in final award stages. This coordinated equipment acquisition reflects the complexity and scale of the Butcherbird Expansion, designed to increase production to 1.1 million tonnes per annum of manganese concentrate based on the updated January 2025 Feasibility Study. Element 25 confirms ongoing contracting and procurement activities are on track with the overall project execution plan, maintaining momentum across all major systems.

ReGroup Australia Selected as Integrated Mining and Haulage Contractor

In May 2026, Element 25 appointed ReGroup Australia Pty Ltd as the integrated contractor for mining and haulage services, consolidating its operating model for the Butcherbird Expansion. Under the Mining Services Agreement, ReGroup will provide open pit mining services, including ore extraction aligned with Element 25’s rolling mine plans, alongside supporting processing operations, waste removal, and stockpiling. This integrated approach is designed to enhance cost efficiency and reduce commercial interface risks between mining and transport contractors.

The Ore Haulage Services Agreement covers ore loading and transportation from site to Utah Point port in Port Hedland, a key part of Element 25’s Pit-to-Port supply chain strategy. Contracts include a structured performance framework with key performance indicators and continuous improvement obligations. Commercial terms align with the Butcherbird Expansion Feasibility Study, linking volumes and KPIs directly to the BBX mine plan. The cost structure features a monthly floor for mining and a scalable take-or-pay haulage obligation, with cross-default provisions to manage risk and incentivize performance.

Butcherbird Expansion’s 1.1 Million Tonnes Target Supports Dual Market Strategy

The Butcherbird Expansion Project aims to boost manganese concentrate output to 1.1 million tonnes per annum, enabling Element 25 to supply both traditional steel markets and its planned Louisiana-based HPMSM processing facility. This capacity increase is based on the updated January 2025 Feasibility Study and an Ore Reserve of 101.4 million tonnes at 10.4% manganese, equating to 10.54 million tonnes of contained manganese. At the planned production rate, the reserve supports an estimated mine life exceeding 18 years.

This dual supply strategy marks a strategic shift from a pure manganese producer to an integrated battery materials company. The expanded Butcherbird operation will serve as the primary feedstock source for the Louisiana HPMSM facility, creating a vertically integrated supply chain from ore extraction in Western Australia to battery-grade manganese sulphate production in the U.S. This integration aims to ensure long-term supply reliability for the downstream processing plant.

U.S. Department of Energy Confirms US$166 Million Grant for Louisiana HPMSM Plant

Element 25 and the U.S. Department of Energy have finalized an updated grant agreement valued at US$166 million to finance the company’s planned Louisiana HPMSM facility under the Battery Materials Processing Grant Program. This reaffirmation of U.S. government support aligns with critical minerals and battery supply chain objectives. The Manufacturing and Energy Supply Chains (MESC) grant remains a cornerstone of the Louisiana project’s development and financing strategy.

The timing of this grant update is significant as Element 25 has reviewed its HPMSM Project Execution Plan to optimize development amid evolving electric vehicle market conditions and emerging battery chemistries. The US$166 million support indicates alignment with the Department of Energy’s priorities for securing domestic battery materials supply chains. Element 25 continues strong engagement with U.S. government and strategic partners, positioning the Louisiana facility as a key element of U.S. battery supply chain resilience.

Project Execution Accelerates Across Multiple Fronts Ahead of Q1 2027 Commissioning

Element 25 is advancing multiple coordinated workstreams including contractor engagement, detailed engineering, and construction planning to ensure readiness for construction start and efficient build progress. Contracts for camp services, offtake, and port operations are nearing finalization pending commercial terms. The company has issued a construction contract tender package for the Butcherbird Expansion to pre-qualified bidders, with bid evaluations underway.

With commissioning scheduled for Q1 2027, Element 25 operates within a roughly nine-month window to complete detailed engineering, finalize major contracts, and mobilize construction teams. The concurrent progression of equipment procurement, contractor engagement, and construction planning demonstrates a multidisciplinary approach to compress timelines while maintaining quality and cost control. Finalizing equipment specs, haulage and mining contracts, and construction tenders underscores the company’s commitment to the Q1 2027 commissioning target.

Pit-to-Port Supply Chain Strategy Enables Comprehensive Operational Oversight

The Butcherbird Expansion Project is built around an integrated Pit-to-Port supply chain strategy spanning ore extraction in Western Australia through to port shipment. The contracts with ReGroup Australia for mining and haulage, combined with planned offtake and port arrangements, aim to create a coordinated supply chain featuring real-time fleet monitoring and operational data integration. This Pit-to-Port business intelligence framework provides transparency across the entire supply chain.

This approach addresses typical mining challenges by coordinating ore movement from extraction to export to optimize cost and schedule. Consolidating mining and haulage under one contractor reduces interface risks and establishes clear accountability for timely, cost-effective ore delivery to Utah Point in Port Hedland. The structured performance framework with variable costs, monthly floors, and take-or-pay obligations incentivizes smooth operations. This is critical as production ramps to 1.1 million tonnes per annum, requiring seamless coordination among mining, transport, and port functions.

Strategic Integration of Butcherbird and Louisiana Facilities Drives Long-Term Battery Materials Vision

Element 25’s linking of the Butcherbird Expansion and Louisiana HPMSM facility reflects a strategic pivot toward battery materials production and supply chain integration. Expanding Butcherbird to 1.1 million tonnes per annum creates sufficient feedstock to supply both steel markets and the downstream processing plant. This integration tackles the challenge of securing reliable, cost-effective feedstock for battery materials.

The US$166 million DOE grant combined with progress on Butcherbird construction indicates a coordinated timeline for both assets. The company’s review of the Louisiana HPMSM Project Execution Plan to adapt to evolving EV markets and battery chemistries shows flexibility while maintaining the core goal of producing battery-grade manganese sulphate for North America’s battery and EV sectors. This integrated strategy "underpins long-term supply," positioning Element 25 as a vertically integrated battery materials supplier.

Investor Considerations: Risks and Execution Challenges Ahead

Despite significant progress in equipment procurement and contractor selection, the Butcherbird Expansion Project faces typical execution risks of large-scale mineral processing developments. The ambitious Q1 2027 commissioning target requires flawless coordination across equipment delivery, engineering, contracting, site mobilization, and construction. Any delays from supply chain disruptions, engineering changes, or construction issues could impact the timeline.

The simultaneous development of Butcherbird and the Louisiana HPMSM facility introduces complexity across two distant locations, requiring careful coordination and capital management. The ongoing review of the Louisiana Project Execution Plan in response to changing EV market conditions and battery chemistries may affect project scope or schedule. Investors should monitor updates on project execution, equipment arrivals, and construction progress as indicators of Element 25’s ability to meet the Q1 2027 commissioning goal and achieve the planned 1.1 million tonnes per annum production ramp.