Stellantis makes first payment to Element 25
PERTH (miningweekly.com) – Global automaker Stellantis has completed its first $15-million investment in ASX-listed Element 25, following the offtake and project financing agreement announced in January.
Under the terms of the agreement, Element 25 will supply up to 10 000 t/y of battery-grade high-purity manganese sulphate (HPMSM) to Stellantis for its electric vehicle (EV) battery requirements, for a period of five years, with the provision to extend the supply agreement and to increase volumes.
The agreement combines take or pay offtake commitments for 45 000 t of HPMSM from Element 25’s proposed US-based processing facility, which Stellantis is to part-fund with a $30-million investment in two tranches.
The first $15-million in funding was provided by way of a share subscription agreement, priced at A$1 a share, with Element 25 saying on Tuesday that the company had issued more than 22.56-million shares to Stellantis.
The company will use the proceeds from the share placement for planned engineering and construction activities to advance its proposed US-based HPMSM processing facility in Louisiana.
A further $15-million will be structured as a prepayment agreement which will be repaid out of HPMSM supplied under the offtake agreement to Stellantis over the five-year period, on commercial terms.
Element 25 is hoping to start HPMSM supply to Stellantis in 2026, with 5 000 t of HPMSM targeted in the first year of operations, increasing to 10 000 t/y in years two to five.
Element 25 told shareholders on Tuesday that the first investment from Stellantis, along with the recently announced $85-million financing facility secured from General Motors, took project commitments from EV manufacturers to $115-million.
Comments
Latest Multimedia
Latest News
Showroom
We supply customers with practical affordable solutions for their testing needs. Our products include benchtop, portable, in-line process control...
VISIT SHOWROOM
Rentech provides renewable energy products and services to the local and selected African markets. Supplying inverters, lithium and lead-acid...
VISIT SHOWROOM
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
