Euro Manganese Inc. (ASX:EMN) has announced a significant milestone in its journey to become a leading supplier of high-purity manganese products.
The company has entered into an offtake term sheet with Wildcat Discovery Technologies, a prominent player in the battery industry based in San Diego, California.
The term sheet outlines the sale of high-purity manganese products from Euro Manganese’s flagship Chvaletice Manganese Project in the Czech Republic.
This agreement marks a strategic partnership between the two companies, with deliveries expected to commence once Wildcat’s planned U.S. plant successfully qualifies the product. It holds significant importance for both companies and the broader battery supply chain in Western markets.
Dr Matthew James, President & CEO of Euro Manganese, emphasised the strategic value of their product, stating: “An important value proposition is our product does not originate from, or is processed by, a foreign entity of concern, a key purchasing criteria for North American customers.”
Mark Gresser, CEO of Wildcat, highlighted the agreement’s role in developing “high quality, low cost, reliable, localised and IRA compliant sources for important cathode pre-cursor materials”.
The agreement is contingent on the construction of Wildcat’s U.S. plant, which is anticipated to be operational between 2026 and 2027.
This partnership positions Euro Manganese as a key player in the growing electric vehicle and advanced technology sectors, supporting the global transition towards a circular, low-carbon economy.
As the only substantial manganese resource in Europe, the Chvaletice Manganese Project stands to play a crucial role in supplying critical raw materials to battery supply chains in the region and beyond.
- Duration: The initial agreement spans seven years, with the possibility of renewal.
- Volume: Offtake volumes are set to increase over time, representing a significant percentage of Euro Manganese’s annual production from the Chvaletice project.
- Pricing: The pricing mechanism will be linked to market indicators, with provisions for adjustments based on specific benchmarks.
- Status: While currently non-binding, both parties intend to finalise a binding offtake agreement.
