23 SEPTEMBER 2024
Our Hermosa project located in Arizona, United States, has been selected for a US$166M award negotiation from the US Department of Energy (DOE) – which will support the potential development of a commercial-scale manganese production facility.
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.
While subject to further study, construction of the facility and the development of Clark represents a significant opportunity to establish a North American supply chain of battery-grade manganese in a phased approach in line with market development.
The grant from the DOE’s Battery Materials Processing and Battery Manufacturing program will provide 30 per cent of the cost of the manganese production facility on a cost-share basis and subject to final negotiation, up to the grant award of US$166M.
“We welcome this grant from the US Department of Energy, which recognises Clark’s potential to supply battery-grade manganese to the emerging North American market", said Graham Kerr, South32 Chief Executive Officer.
“Hermosa represents a regional scale project with the potential to produce commodities critical to a low-carbon future across multiple deposits for decades to come.”
We are engaging potential customers to advance product qualifications for battery manufacturing, including potential agreements for future supply following the signing of multiple non-binding Memorandums of Understanding.
Construction of a decline at Clark to enable bulk sampling through a demonstration plant and further underground exploration is underway, with decline access scheduled for the end of CY25. The US Department of Defense is supporting this work through a US$20M grant from the Defense Production Act Investment Program.
“The potential development of the Clark deposit is in addition to the development of Hermosa’s Taylor zinc-lead-silver deposit, which is progressing as planned following final investment approval earlier this year,” said Graham.
“Our investment in Taylor will unlock value for future growth options, including Clark, by establishing significant shared infrastructure.”
Learn more about our Hermosa project and the development of the Taylor deposit.