Element 25 (ASX:E25) has signed a non-binding memorandum of understanding (MoU) with Nissan Chemical Corporation and NC Tokyo Bay Corporation to explore the development of a high-purity manganese sulphate monohydrate (HPMSM) facility in Japan. Following a positive Scoping Study, the companies will now conduct a Feasibility Study to assess constructing the facility at the NC Tokyo Bay Corporation (NCTB) Chiba site.
The MoU outlines a collaborative effort to jointly develop the HPMSM facility on existing industrial land. Key steps include identifying engineering, procurement, and construction contractors, finalizing offtake agreements, and securing project finance, with a targeted final investment decision by June 2026. Element 25 reports the Scoping Study found no fatal flaws. The Chiba site presents unique opportunities for co-location, leveraging Nissan Chemical’s sulphuric acid production at its Chiba, Ichi, and Toyama prefecture facilities, which are key inputs for Element 25’s process.
NCTB also generates CO2-free steam, which can be supplied to the facility. The site offers all other required utilities, including natural gas, water, and sewer services, as well as substantial ancillary infrastructure. HPMSM is critical for lithium-ion batteries, with demand rapidly increasing in China, Europe, and the US. Manganese is a critical mineral in Japan, with government incentives supporting battery-related industries. Several leading EV battery and precursor manufacturers are based in Japan.