May 26 (Reuters) - Manganese producer Element 25 said on Tuesday it is reviewing its project execution plan for the production of high-purity manganese sulphate monohydrate (HPMSM) in Louisiana, U.S., citing evolving electric vehicle demands.
Manganese is a key raw material for EV batteries and the facility is being developed in partnership with automobile majors General Motors and Stellantis, with support from the U.S. Department of Energy.
• Element 25 said it is in discussions with General Motors
to renegotiate its contract after project schedule changes resulted in delivery timelines not being met.
• The company is also in parallel discussions with Stellantis regarding their arrangements.
• "The landscape has shifted materially over the past 12 months, and it is essential that our strategy reflects current demand signals as well as the emerging chemistry mix being adopted by major equipment manufacturers across the EV and other battery markets," said Element 25 Managing Director Justin Brown.
• The review of the Louisiana project will include aspects such as site selection and associated contracts, project finance completion, construction timelines and updating grant agreements with the U.S. Department of Energy.
• Element 25 is also expanding its Butcherbird operations in Western Australia, allowing it to supply the planned HPMSM facility in Louisiana, as well as customers in the established ferroalloys (steel) market.
(Reporting by Nichiket Sunil in Bengaluru; Editing by Jonathan Ananda)
