Element 25 (ASX:E25) Advances Battery-Grade Manganese Plans with DoE Backing

Highlights

• Element 25 has finalised revised terms with the U.S. Department of Energy(DoE) for US$166 million in grant funding for its planned Louisiana HPMSM facility.
• The revised agreement aligns the projects execution plan with evolving battery market conditions and U.S. critical minerals supply chain objectives.
• Element 25 plans to integrate the Butcherbird Expansion Project with the Louisiana facility to establish a long-term manganese feedstock supply.
• The company will continue working with the DoE, General Motors and Stellantis to advance the updated HPMSM Project Execution Plan.

Element 25 Limited (ASX:E25) has taken another step towards developing ani ntegrated battery materials supply chain spanning Western Australia with the United States. The Company has now finalised revised funding terms with the U.S. Department of Energy(DoE) for US$166 millionlinked to its proposed high-purity manganese sulphate monohydrate (HPMSM) facility in Louisiana.

The agreement follows months of discussions between the two parties andreflects adjustmentsto theproject's execution timelineas battery markets and manganese-based technologies continue to evolve.

Revised Funding Agreement Reshapes the Project Roadmap

The updated arrangement retains the principal obligations attached to the previously announced grant. However, Element 25 and the DoE have revised the work program, project milestones and activities scheduled across different budget periods.

These changes form part of a broader reassessment of how the Louisiana project will be developed. Element 25 has been adjusting its execution strategy to account for changing market conditions, new developments in battery chemistry and the longer-term outlook for manganese-based cathode materials.

The proposed facility is intended to produce HPMSM for markets linked to electrification, with potential applications spanning transport, grid storage,defenceand aviation.

The continued involvement of the DoE also reflects the projects alignment with U.S. efforts to expand domestic processing capacity for critical materials and reduce supply chain vulnerabilities.

Changing Battery Technologies Guide the Next Phase

Element 25 began reviewing its HPMSM Project Execution Plan in May 2026to better align the project with changing battery industry trends.

One area influencing this work is the emergence of battery chemistries with higher manganese content. The Company is therefore refining the project pathway to better reflect future demand patterns and current market conditions.

Element 25 is undertaking this work alongside the DoE and its strategic partners, General Motors and Stellantis. The aim is to position the Louisiana facility around the longer-term requirements of battery-material customers while preserving the projects role as a future source of battery-grade manganese products.

As the downstream strategy develops, Element 25 is also connecting it more closely with its manganese operations in Western Australia.

Butcherbird Creates the Upstream Link

Element 25's100%-owned Butcherbird Manganese Projectremainscentral to its long-term strategy.

The planned Butcherbird Expansion Projectisexpectedto lift manganese concentrate production to approximately 1.1 million tonnes per annum of medium-grade, high-silica manganese ore. This production is intended to support downstream conversion into HPMSM and provide a long-term source of feedstock for the planned Louisiana operation.

By combining manganese production at Butcherbird with processing capacity in the United States, Element 25 is working towards a vertically integrated supply chain extending from mine production to battery materials.

The model is intended to secure manganese supply from an allied source, serve battery manufacturers across several industries and respond to growing interest in manganese-rich battery chemistries. It is also designed to support greater supply security for customers in the United States.

Element 25 Moves into the Next Stage

With the revised grant terms agreed, Element 25 will continue working with the U.S. Department of Energy, GeneralMotorsand Stellantisto finalisethe updated execution plan for the Louisiana HPMSM project.

The next phase will focus on progressing the revised development program while advancing the company's broader strategy ofestablishingan integrated manganese-to-battery materials supply chain serving North American customers.

E25 shares traded at AUD0.24at the time of writingon 15 July 2026.