Stellantis Invests $15 Million in Element 25 as its Initial Equity Investment. It Plans to Invest the Money into Building a High Purity Manganese Sulphate Monohydrate (HPMSM) Plant in the United States for the Production of Batteries.
- Stellantis, a global automaker, has completed a US$15 million (A$22.6M at A$1 per share) first investment in Element 25 after the conditions of the companies’ agreement announced on January 9, 2023, were met.
- Element 25 plans to put the money from the investment towards building a factory in the United States that produces high purity manganese sulphate monohydrate (HPMSM) for use in rechargeable batteries.
- Take or pay commitments for the supply of 45kt of HPMSM from the facility over five years and additional funding of US$15M structured as a pre-payment agreement to be repaid out of HPMSM supplied to Stellantis are both part of the agreement between Stellantis and E25.
- In addition, Element 25 has an agreement to supply General Motors’ USA Ultium Battery Plants with HPMSM, which includes a US$85M financing facility, bringing E25’s total project commitments to US$115M.
With the satisfaction of all conditions, Element 25 Limited (ASX:E25) is happy to report that the US$15 million share placement by global automaker Stellantis N.V. (Stellantis) has closed.
Under the terms of the agreement, E25 has issued 22,569,967 shares to Stellantis at a price of A$1.00 per share. This transaction has resulted in gross proceeds to E25 of A$22,569,967. To move forwards with its proposed high purity manganese sulphate monohydrate (HPMSM) processing facility (Facility) in Louisiana, USA, Element 25 intends to use the proceeds for engineering and construction activities.
The announcement comes after Element 25 and Stellantis announced on January 9 that they had entered into a legally binding agreement (Agreement) for the delivery of battery-grade HPMSM from E25’s prospective facility in Louisiana.
Take-or-pay offtake commitments for 45Kt of HPMSM from the facility over five years and US$30M in project funding split between two tranches contribute to the capital cost of the facility as part of E25’s Agreement with Stellantis. The first tranche of financing consists of a $15 million equity investment in Element 25.
The closing of this first investment tranche marks a significant milestone in the project’s financing, and when added to E25’s recently announced US$85M financing facility with General Motors, the total project commitment from these two industry leaders in electric vehicles rises to US$115M.
