Federal Government backs Butcherbird

The Northern Australia Infrastructure Facility (NAIF) will invest up to $50m for Element 25’s (ASX: E25) Butcherbird manganese project in the Pilbara region of WA.
This will support Element 25’s plans to expand Butcherbird’s production capacity to 1.1mtpa of manganese oxide concentrate.
Butcherbird’s expansion will enable it to supply manganese concentrate feedstock for Element 25’s planned battery grade, high purity manganese sulphate monohydrate (HPMSM) processing facility which it plans to build in Louisiana, US, as well as securing
concentrate sales to other customers.
NAIF’s support for the expansion follows Element 25’s awarding of a Grant Agreement for $268m (US$166m) from the US Department of Energy (DoE) under the Battery Materials Processing Grant Program to support construction of its planned HPMSM facility in Louisiana.
Element 25 plans to leverage its innovative, advanced processing flowsheet to convert Butcherbird manganese concentrate into HPMSM, a critical raw material for the manufacture of lithium-ion batteries.
The proprietary flowsheet reduces energy consumption, virtually eliminates waste and delivers the lowest reported carbon intensity HPMSM globally, according to Element 25.
Recent industry developments include a potential industry shift towards lithium manganese rich (LMR) battery chemistry, rather than a high nickel formulation, with Element 25’s offtake partner GM one of the first automakers looking to adopt this technology, after spending more than a decade on research.
While high nickel battery cells typically use about 5-10% manganese, LMR battery cells use around to 50-70% manganese, increasing the required manganese by a factor of around ten, according to Element 25.
Element 25 managing director Justin Brown says securing this support from the Federal
Government’s NAIF reaffirms the government’s commitment to developing Australia’s critical minerals sector and Butcherbird’s economic importance to Australia and the Pilbara region of WA.
“Our feasibility studies have confirmed Butcherbird’s pedigree as a long-life manganese concentrate production hub from its 274mt resource, which is integral to our plans for HPMSM in the US as well as potentially other locations around the world,” he said.
“This support from NAIF is critical to our plans to expand Butcherbird to meet this growing demand as the world continues to shift towards electrification and energy transition.
“Batteries will potentially use as much as 10 times more manganese if battery chemistry shifts towards lithium manganese rich, or LMR, chemistries as recently announced by various tier 1 OEMs and battery makers including General Motors, Ford and Posco FM.
“We want to expand Butcherbird to help meet this demand and look forward to delivering the expansion with NAIF’s support.”
Federal Minister for Resources and Northern Australia Madeleine King says the expansion of the Butcherbird manganese project will be a major boost for Northern Australia.
“The Pilbara is the engine room of Australia’s economy and projects like this will ensure that engine keeps running for many years to come,” she said.
“This project is creating jobs, driving the economy of the Pilbara, and delivering outcomes for First Nations Australians.
“I believe the Butcherbird manganese project will be another in a long list of success stories stemming from the NAIF’s investments.”
The Federal Government estimates the project will create 150 construction jobs and around 230 operational positions through the mine’s 18-year lifecycle.
Element 25 has committed to a minimum 10% Indigenous employment target and minimum 5% of jobs recruited from the Pilbara region.