Element 25 (ASX:E25) has signed a non-binding memorandum of understanding (MoU) with Nissan Chemical Corporation with NC Tokyo Bay Corporation to develop a battery-grade high-purity manganese sulphate monohydrate (HPMSM) facility in Japan.
Following completing a Scoping Study to examine the potential for Element 25 to construct the facility at the Tokyo Bay site, the companies will now complete a Feasibility Study.
Under the MoU, all of the companies will evaluate the potential to jointly develop the facility to be located on existing industrial land at the NC Tokyo Bay Corporation (NCTB) Chiba site.
Once the Feasibility Study is completed, final details of the plan, including timeframe and funding will be determined.
The MoU outlines several key steps including identifying potential engineering, procurement and construction contractors, finalising offtake agreements, and securing sufficient project finance to reach a targeted final investment decision for June 2026.
Element 25, which has a market capitalisation of $56 million, says the Scoping Study confirmed the potential feasibility of the facility and identified no fatal flaws.
The proposed Chiba site offers unique opportunities for the co-location of an HPMSM facility.
In addition to producing sulphuric acid at Chiba, Nissan Chemical produces sulphuric acid at its ichi and Toyama prefecture facilities, as well as other key reagents at the Toyama prefecture — all key inputs into the Element 25 process.
NCTB also generates CO₂-free steam through an established steam generator attached to the acid plant. Steam can be supplied to the facility without requiring additional capital works.
All other required utilities including natural gas, water, and sewer services. These are all available at the NCTB site, as well as substantial ancillary infrastructure and services.
HPMSM refers to a suite of highly refined finished products that are critical to most lithium-ion batteries. Its use and demand are increasing rapidly, particularly in China, Europe, and the US.
In Japan, manganese has been established as a critical mineral and has legislated incentives to establish battery-related industries in the country. Numerous leading EV battery and precursor manufacturers are also based in Japan.
NCTB was established in 1967 as Nippon Phosphoric Acid to contribute to the domestic agricultural food production industry. Since 2023, NCTB has been a wholly owned subsidiary company of Nissan Chemical Corporation.
Element 25 is a manganese-focused developer that operates the Butcherbird Project in Western Australia.
Write to Aaliyah Rogan at Mining.com.au
Images: Element 25
