South32 Gets U.S. Funding for Manganese Production Facility

By Mike Cherney

SYDNEY--Australia-based mining company South32 said it is poised to receive a $166 million grant from the U.S. government to help develop a manganese production facility at a project in Arizona.

South32 said the U.S. Department of Energy is expected to fund 30% of the cost of the facility at its Hermosa project, subject to final negotiation. It said the arrangement is a significant opportunity to establish a North American supply chain for battery-grade manganese, which is used in electric vehicles.

"Hermosa's Clark deposit is currently the only advanced project in the United States with a clear pathway to produce battery-grade manganese from locally sourced ore for the North American electric vehicle battery market," South32 said in a press release.

Manganese is increasingly replacing more expensive and harder-to-source minerals such as cobalt and nickel in the lithium-ion batteries that power electric cars, smartphones and laptops. China refines much of the world's battery-grade manganese, creating concerns in Western countries about their reliance on Beijing as they seek to decarbonize.

Write to Mike Cherney at mike.cherney@wsj.com

(END) Dow Jones Newswires

September 22, 2024 19:03 ET (23:03 GMT)

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