Euro Manganese (TSX-V/ASX:EMN) has signed an agreement with EIT InnoEnergy, a public-private partnership that is supported by the European Institute of Innovation and Technology, a European Union entity. This will allow it to tap into EIT InnoEnergy’s network and resources, as it seeks to integrate itself into the EU battery supply chain.
EIT InnoEnergy leads the industrial stream of the European Battery Alliance, an initiative launched by the European Commission in October 2017 with the objective to build a strong and competitive battery industry in Europe.
Battery recycling venture in the heart of Europe
Euro Manganese is a unique manganese recycling venture sited in the heart of Europe and ideally positioned to deliver high purity manganese to EV battery factories across the region. Not only that, but it has impeccable environmental credentials, as the project is going to reprocess and conduct an environmental remediation of mine tailings in the Czech Republic which are a source of ongoing water pollution.
As part of the agreement, EIT InnoEnergy is providing an initial funding of €250,000 to help Euro Manganese with its feasibility study and demonstration plant, which have both been targeted for completion by the end of 2021. Importantly, it will also assist Euro Manganese with securing financing of up to €362m for the commercial development of the Chvaletice Manganese Project.
EIT InnoEnergy’s target sources of funding for EMN include substantial Europe-wide and regional grant programs, as well as government project finance and economic development banks.
EIT InnoEnergy also plans to assist Euro Manganese to secure binding product offtake agreements with consumers of high purity manganese products, including European electric vehicle, battery and cathode manufacturers, virtually all of which are members of the European Battery Alliance.
“A unique opportunity for Europe”
“Euro Manganese’s proposed development is the only sizeable manganese resource in the European Union,” said Diego Pavia, CEO of EIT InnoEnergy. “It represents a unique opportunity for Europe to secure a measure of self-sufficiency in manganese, which is a critical battery raw material. The Chvaletice Manganese Project has the potential to provide up to 50% of projected 2025 European demand for high-purity manganese, and around 28% of anticipated 2030 requirements.
“Our society is moving to electric mobility as part of the EU’s green transition, and the project exemplifies the ideals of a sustainable, circular economy. Euro Manganese’s 25-year project’s low carbon footprint supports Europe’s greenhouse gas reduction goals.
“By reprocessing existing mining waste located in Europe, the project is anticipated to have a much smaller environmental footprint than other existing sources of battery grade manganese, which are typically mined and shipped from Africa, processed in China and then transported to Europe. It fits well with the increasing demand for sustainable sources of battery materials located within or in close proximity to the EU.”
In recent years, EIT InnoEnergy has entered into support agreements with other companies that have the potential to make valuable contributions to the development of Europe’s battery and battery raw materials industry, including innovative Swedish battery maker, Northvolt, along with. Verkor, Vulcan Energy Resources, Infinity Lithium, European Metals Holdings and others.
European Union support for the development of a European electric vehicle and battery supply chain has been accelerating. The European battery value chain received a major boost on January 26, 2021, with the EU’s approval of a €2.9 billion European research and innovation project. This is the second Important Project of Common European Interest (“IPCEI”) for the industry – a pan-European aid program known as the Battery Innovation Project, some of whose beneficiaries include BASF, UMICORE and Tesla, as well as many others. This new funding builds on an earlier IPCEI for the battery industry, in which a €3.2 billion EU state aid package was announced in 2019.
Euro Manganese stands to become Europe’s only primary producer of battery-grade manganese products, with European Union support.