Element 25 Limited provided an update with respect to the planned production of high purity battery grade manganese sulphate monohydrate (HPMSM) from manganese oxide concentrates currently produced at the Company's 100% owned Butcherbird Project (Project). Several locations are being investigated in line with the Company's ambition to develop multiple processing location over time to serve the rapidly expanding lithium-ion battery material markets in different geographic regions with a particular short-term focus on Asia and North America. Important macro-economic and geopolitical influences support the business case for HPMSM production from an
Australian manganese source including widespread efforts to electrify the global vehicle fleet, as well as supply chain ESG considerations which require more scrutiny on material provenance and a move towards diversifying the source of supply of critical minerals. HPMSM is the highest purity "battery grade" manganese chemical used in lithium-ion batteries and demand for this specialty material is expected to grow rapidly in coming years in line with the growth in production of Electric Vehicles (EV's) and sustainable and ethical considerations will, in the opinion of the Company's board, become an increasingly important factor in sourcing strategies across the globe. The Feasibility Study (FS) remains on schedule for completion in December 2022. Vendor pricing and approximate lead times have been received for all major packages with the preliminary numbers for the project capital cost estimate in line with company expectations. Ongoing engagement with project engineers and third-party consultants has progressively improved layout and equipment selection with consequent cost optimisation. Decisions around layout and overall design continue to be optimised to align with the DOBM engineering philosophy.