Element 25 Advances Butcherbird Expansion with A$50M NAIF Backing; Sets Eye on ASX200 Trajectory

June 17, 2025 10:53 AM AEST | By Team Kalkine Media

Google News:

Element 25 Advances Butcherbird Expansion with A$50M NAIF Backing; Sets Eye on ASX200 Trajectory — Image source: shutterstock

Recent News

Geopolitical Tensions Stir Global Markets: ASX 200 and All Ordinaries...

StepChange Holdings to Join ASX 200 With SAP-Focused ERP Strategy

Institutional Confidence Fuels Metcash (ASX:MTS) Momentum

ASX 200 and All Ordinaries: CSL, Treasury Wine Estates, and Accent Gro...

Highlights

Element 25 secures A$50M NAIF debt for Butcherbird expansion

Boosts manganese output to fuel US battery-grade plant

Feasibility study reveals strong financial returns over 18 years

Element 25 (ASX:E25) has taken a major step forward in scaling its Butcherbird Manganese Project in Western Australia’s Pilbara region, having secured a debt facility of up to A$50 million from the Northern Australia Infrastructure Facility (NAIF). This funding supports the company’s ambition to grow Butcherbird into a 1.1 million tonne per annum (Mtpa) manganese concentrate operation, reinforcing its strategic importance in the global critical minerals supply chain.

Strengthening Domestic and Global Supply Chains

The funding includes A$42.5 million in senior debt and an additional A$7.5 million allocated as a cost overrun facility. This move aligns with Element 25’s goal of providing feedstock to its upcoming high purity manganese sulphate monohydrate (HPMSM) processing facility in Louisiana, United States. The Louisiana project itself is backed by a US$166 million grant from the U.S. Department of Energy and will supply up to 135,000 tonnes of HPMSM annually to electric vehicle (EV) manufacturers.

Offtake agreements totaling US$115 million with automotive giants General Motors and Stellantis underpin the financial foundation of the US-based plant. HPMSM produced will cater specifically to the rapidly growing EV supply chains, as global battery chemistries pivot towards lithium manganese-rich (LMR) technologies.

Strong Feasibility, Regulatory Compliance, and Execution

A feasibility study updated in January 2025 projects a capital cost of A$64.8 million, a robust pre-tax Net Present Value (NPV) of A$561 million, and an impressive Internal Rate of Return (IRR) of 96%. The project is forecasted to generate average annual cash flows of A$70.5 million across its 18-year life span.

All key regulatory approvals have been secured from Western Australia’s Department of Water and Environmental Regulation (DWER) and the Department of Energy, Mines, Industry Regulation and Safety (DEMIRS), enabling smooth progression toward project execution. Construction is already underway, with logistics and contractor engagements advancing in line with the planned 2026 commissioning.

Positioning in the ASX200 Landscape

As global demand surges for critical battery materials, particularly manganese, Element 25’s strategic positioning could enhance its relevance among ASX200 stocks. With growing interest in companies enabling energy transition and electrification, inclusion in the ASX200 index may offer greater visibility among institutional investors and retail market participants.

Unallocated manganese output from Butcherbird will serve global manganese alloy and steel sectors, broadening Element 25’s market exposure. The project’s low-carbon processing flowsheet is designed for minimal waste, further supporting its appeal in ESG-aligned investment portfolios.

With financial support from NAIF and global offtake partners, Element 25 is firmly advancing its strategy to emerge as a key player in the global energy transition.

Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (Kalkine Media, we or us), ACN 629 651 672 and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated as or found to be necessary.