South32 (ASX:S32) has received a US$166 million grant from the US Department of Energy (DOE) for development of its Clark manganese deposit, located in the US state of Arizona.
- The Hermosa Project’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
- The grant from the DOE’s Battery Materials Processing and Battery Manufacturing program will support the potential development of a commercial-scale manganese production facility
- On a cost-share basis and subject to final negotiation, the DOE will provide 30 percent of the cost of the manganese production facility, up to the grant award of US$166 million.
South32 Chief Executive Office Graham Kerr said, “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. 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. Following final investment approval earlier in the year, construction of our large-scale, long-life Taylor zinc-lead-silver project is progressing as planned. Our investment in Taylor will unlock value for future growth options, including Clark, by establishing significant shared infrastructure. In addition to Taylor and Clark, we are continuing further exploration programs at Peake to test the potential for a continuous copper system connecting Peake and Taylor.”