Summary
- DOE has selected South32 for a $166 million funding award for the Hermosa project in Arizona
- South32 is developing the Clark deposit to produce battery-grade manganese for the North American EV market
- The grant will support the development of a commercial-scale production facility for manganese
- Construction at Clark for bulk sampling and exploration is underway, supported by a $20 million grant from the Department of Defense
- South32 CEO sees Hermosa as a potential long-term supplier of critical commodities for a low-carbon future
Article
The US Department of Energy has selected Australian mining and metals company South32 to negotiate a $166-million funding award for its Hermosa project in Arizona. South32 aims to produce battery-grade manganese for the North American EV market from its Clark deposit, utilizing locally sourced ore. The grant from the DOE’s Battery Materials Processing and Battery Manufacturing program will support the development of a commercial-scale manganese production facility. South32 is currently engaging potential customers to qualify its products for battery manufacturing, with potential future supply agreements in the works.
The DOE will provide 30% of the cost of the manganese production facility on a cost-share basis, up to the grant award value. Construction of a decline at the Clark deposit is ongoing to enable bulk sampling through a demonstration plant and further underground exploration. Decline access is expected to be available by the end of 2025. The US Department of Defense is also supporting this work with a $20-million grant from the Defense Production Act Investment Program. South32’s CEO, Graham Kerr, expressed enthusiasm for the grant from the DOE, highlighting Clark’s potential to supply battery-grade manganese to the growing North American market. He emphasized Hermosa as a significant project that could produce critical commodities for a low-carbon future across multiple deposits for years to come.
The Hermosa project at South32’s Clark deposit is a key initiative for the company to tap into the North American EV market with battery-grade manganese. By securing funding from the DOE’s Battery Materials Processing and Battery Manufacturing program, South32 aims to develop a commercial-scale production facility to meet the increasing demand for battery materials in the region. The cost-sharing arrangement with the DOE will provide crucial financial support for the project, with the potential for future supply agreements and product qualifications driving further growth and success for South32.
The ongoing construction of a decline at the Clark deposit demonstrates South32’s commitment to advancing the Hermosa project and expanding its capabilities for bulk sampling and exploration. The support from the US Department of Defense further solidifies the importance of the project in meeting the nation’s strategic and economic goals related to battery materials and production. With access to locally sourced ore, South32 is well-positioned to contribute to the development of a sustainable and secure supply chain for battery-grade manganese, essential for the growth of the EV market in North America.
The grant from the DOE and the collaboration with potential customers signify a significant milestone for South32 and the Hermosa project, paving the way for the development of a regional-scale facility with long-term production capabilities. The recognition of Clark’s potential to supply critical commodities for a low-carbon future underscores the importance of projects like Hermosa in driving innovation and sustainability in the mining and metals industry. By leveraging support from governmental and industry partners, South32 is poised to make a substantial impact on the North American EV market and contribute to a more sustainable and eco-friendly future.
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