Manganese developer Element 25 has secured a senior debt facility of up to A$50-million from the Northern Australia Infrastructure Facility (NAIF), supporting the planned expansion of its Butcherbird manganese project in Western Australia.

The financing package includes A$42.5-million in senior debt and a A$7.5-million cost overrun facility, aimed at increasing production capacity at Butcherbird to 1.1-million tonnes a year of manganese oxide concentrate. The expanded output will support Element 25’s plans to feed its proposed high-purity manganese sulphate monohydrate (HPMSM) facility in Louisiana, US, as well as supply other customers.

“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,” said MD Justin Brown.

“Our feasibility studies have confirmed Butcherbird’s pedigree as a long-life manganese concentrate production hub from its 274-million-tonne resource, which is integral to our plans for HPMSM in the USA as well as potentially other locations around the world. 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.”

Brown added that demand for manganese in battery production could significantly rise. “Batteries will potentially use as much as ten 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.”

The Butcherbird feasibility study, updated in January, estimated a capital cost of A$64.8-million, with a pre-tax net present value of A$561-million and a 96% internal rate of return. Average annual pre-tax cashflows are projected at A$70.5-million over an 18-year mine life.

NAIF’s backing follows Element 25’s $166-million grant from the US Department of Energy for the construction of its HPMSM facility in Louisiana. The company has also secured US$115-million from offtake partners General Motors and Stellantis.

The HPMSM facility will use manganese concentrate from Butcherbird and is expected to produce up to 135 000 t/y of battery-grade HPMSM for the US electric vehicle supply chain. Element 25 says its proprietary process reduces energy use, eliminates waste, and results in the lowest reported carbon intensity for HPMSM globally.

With final environmental and mining approvals in place, Element 25 is now focused on completing legal due diligence and finalising additional financing, including royalty, stream, and offtake structures. The project remains on track for delivery in 2026.