Provides Important Link TO European Battery Alliance
Euro Manganese Inc. (TSX-V/ASX: EMN) has signed agreements to secure the backing of EIT InnoEnergy, a Knowledge and Innovation Community supported by the European Institute of Innovation and Technology, for the Chvaletice Manganese Project in the Czech Republic.
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.
Under the terms of a Project Support Agreement and a Value-Added Services Agreement between the company and EIT InnoEnergy dated February 22, 2021, EIT InnoEnergy will help accelerate the Chvaletice Manganese Project’s successful integration into Europe’s electric vehicle (EV) battery value chain.
The Project is designed to produce high-purity manganese products by reprocessing manganese-rich tailings from a decommissioned mine site in the Czech Republic.
Diego Pavia, CEO of EIT InnoEnergy, is confident the Chvaletice Manganese Project stands to provide Europe’s fast-growing EV industry with a secure, long-term supply of high-purity manganese.
“Euro Manganese’s proposed development is the only sizeable manganese resource in the European Union. 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.”
Mr Pavia also notes that the Project will deliver significant environmental benefits. “Our society is moving to electric mobility as part of Europe’s green transition, and this project exemplifies the ideals of a sustainable, circular economy. This 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.
The Project also stands to remediate the impacts of past mining activity by recycling industrial waste. These are significant environmental benefits. By helping Mangan Chvaletice become fully integrated into the European battery value chain, we seek to strengthen the foundation of Europe’s green and electric future.”
To expedite the Project and the benefits that it will bring to Europe, EIT InnoEnergy will initially invest €250,000 to help fund ongoing work in the Czech Republic on the Chvaletice definitive feasibility study and the commissioning of a demonstration plant, both currently targeted for completion in late 2021. The demonstration plant is intended to produce large-scale samples of high-purity manganese for supply chain qualification by prospective customers, including European electric vehicle makers and battery manufacturers.
Euro Manganese CEO, Marco Romero, says the Chvaletice Manganese Project offers Europe’s only realistic opportunity to deliver local, primary production of a critical battery raw material for which demand is growing rapidly, driven principally by electric vehicle battery manufacturing.
“The Chvaletice Project is Europe’s largest manganese resource and we plan to develop it using clean, commercially proven and state-of-the-art technology” says Mr Romero.
“We are grateful to have enlisted the support of EIT InnoEnergy and look forward to working with them to bring our project to fruition. By recycling the Chvaletice tailings, our Czech subsidiary, Mangan Chvaletice, will be providing Europe with high-purity manganese products that meet or exceed the EU and Czech Republic’s stringent environmental standards.”
EIT InnoEnergy’s services will focus on securing offtake agreements with consumers of high-purity manganese products and supporting strategic financing efforts. EIT InnoEnergy has further agreed to help Euro Manganese secure financing of up to €362 million for the commercial development of the Chvaletice Manganese Project.
Potential funding sources include Europe-wide and regional grant programs as well as European project finance and economic development banks. Financial support for the Chvaletice Manganese Project will be conducted through the Business Investment Platform created by the European Battery Alliance. EIT InnoEnergy’s services are non-exclusive, and it will work alongside Euro Manganese’s financial and other advisers.
