The initiative, facilitated by the Department of Energy (DoE), aims to accelerate domestic advanced battery production, specifically for electric vehicles (EVs) and energy storage systems. As part of this initiative, South32’s Hermosa mine and HP MSM processing facility and Element 25’s Louisiana plant were each awarded US$1.7Bn to establish a domestic battery-grade manganese sulphate supply chain.

The Hermosa project, the only US initiative on the FAST-41 permitting process, also received US$20M from the Defense Production Act Investments (DPAI) Program. The capital expenditure (CAPEX) of the project, which comprises the Taylor (Zn–Pb) and Clark (Zn–Mn) deposits, increased by US$2.3Bn. South32 has begun constructing an exploration decline for demonstration-scale output, expected by 2025, with a 60ktpy pilot plant planned in Arizona.

Element 25’s 65ktpy Louisiana plant is anticipated to begin battery-grade manganese sulphate shipments in 2026, following numerous multi-year off-take agreements with OEMs, including Stellantis and General Motors. The plant will source its manganese ore from Element 25’s Butcherbird manganese mine in Western Australia, which is currently undergoing additional exploration to extend its measured resource and expand its annual production to 1Mtpy.

The USA relies on manganese ore imports, as domestic deposits are often minor and low grade. In 2023, the USA imported 245kt of manganese ores, primarily from Gabon (91%), Mexico (6%), and South Africa (3%). Although these imports help support the domestic production of manganese alloys and chemicals, the USA remains dependent on foreign sources for more specialised compounds, such as HP MSM, for its EV battery cathodes. China dominates the global manganese supply chain, importing more than 60% of the world’s manganese ore and supplying more than 98% of global HP MSM for manganese-based batteries due to its well-established and low-cost production. Funding from initiatives such as those from the DoE and the DPAI Program is crucial for establishing important domestic value chains. This funding could also aid in diversifying HP MSM production away from China. Numerous projects outside China encounter difficulties securing the required CAPEX to start operations, and government funding can help fill this gap.

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