Element 25 Secures Key Approval for Butcherbird Expansion, Paving the Way for Growth

3 min read | March 12, 2025 12:03 PM AEDT | By Team Kalkine Media

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Element 25 Secures Key Approval for Butcherbird Expansion, Paving the Way for Growth — Image source: shutterstock

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Highlights

Element 25 (E25) receives final approval for Butcherbird Manganese Project expansion

Expansion to boost manganese production to 1.1 million tonnes per annum

Project supports high-purity manganese supply for electric vehicle industry

Element 25 (ASX:E25) has achieved a significant milestone with the final regulatory approval for its Butcherbird Manganese Project expansion in Western Australia. This approval from the Department of Water and Environmental Regulation (DWER) clears the way for the company to begin construction and ramp up production capacity.

Green Light for Expansion

The Works Approval granted by DWER enables Element 25 to increase its manganese concentrate production to 1.1 million tonnes per annum (Mtpa), a major step in strengthening its position in the global manganese supply chain. With this clearance, the Butcherbird Expansion Project is now fully approved under Western Australia's mining regulatory framework.

The expansion is not only set to enhance production but also plays a crucial role in supporting the company's high-purity manganese sulphate monohydrate (HPMSM) processing facility in Louisiana, USA. This facility, being developed in collaboration with General Motors (NYSE:GM) and Stellantis (NYSE:STLA), is expected to serve the growing electric vehicle (EV) battery market.

Strategic Importance & Market Demand

Manganese is a key component in EV batteries, and demand for high-purity manganese continues to rise as automakers seek sustainable and efficient battery materials. The Butcherbird Project, located in the Pilbara region of Western Australia, is Element 25’s flagship asset and a cornerstone of its broader strategy to supply the EV industry.

The company will also continue its existing commitments to supply manganese alloy and steel industries, ensuring diversified revenue streams.

Financial Outlook & Next Steps

An updated feasibility study released in January 2025 estimates a capital cost of A$64.8 million for the expansion. The study projects a pre-tax Net Present Value (NPV) of A$561 million and a pre-tax Internal Rate of Return (IRR) of 96%. Over an 18-year mine life, the project is expected to generate an average of A$70.5 million in annual cash flow.

Following the latest approval, Element 25 is now in the process of finalizing funding arrangements to support the construction and operational ramp-up. The expansion aligns with its broader plans to become a leading supplier of battery-grade manganese for the global EV market.

Additionally, the HPMSM Project in the U.S. has secured US$166 million in grant funding from the U.S. Department of Energy, further reinforcing the company’s position in the transition toward cleaner energy solutions.

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