- Euro Manganese (EMN) enters its first term sheet for a long-term offtake agreement
- The company signed the deal with French battery manufacturer, Verkor, to sell high-purity manganese sulphate monohydrate from its Chvaletice project in the Czech Republic
- The parties intend to formalise an offtake agreement, which would see the pricing and minimum tonnages outlined in the term sheet become binding
- Euro Manganese expects to start producing the manganese product in 2027, after which delivery of the product to Verkor will commence
- Company shares are up 7.46 per cent to trade at 36 cents at 1:50 pm AEDT
Euro Manganese (EMN) has entered an offtake term sheet with low-carbon battery manufacturer, Verkor.
Under the non-binding term sheet, Euro Manganese will sell high-purity manganese sulphate monohydrate (HPMSM) from its Chvaletice project in the Czech Republic.
The parties intend to strike a formal offtake agreement, which would see the pricing and minimum tonnages outlined in the term sheet become binding.
This marks Euro Manganese’s first term sheet for a long-term offtake, which the company said it considers a “major milestone”.
“I am immensely proud of the team and their hard work in negotiating the first long-term offtake term sheet, with a pricing structure, from a Western supplier in the high-purity manganese market,” EMN President and CEO Dr Matthew James said.
Based in France, Verkor is focused on low-carbon battery manufacturing to meet Europe’s growing demand for electric vehicles and electric mobility.
Verkor’s CEO, Benoit Lemaignan said Euro Manganese’s project meets Verkor’s goals and needs.
“I know we can continue to count on them for the next milestone of our development as we make our first gigafactory project a reality,” Mr Lemaignan said.
Euro Manganese expects to start producing HPMSM in 2027, with annual production targeted for 65,000 tonnes, before ramping up to 100,000 tonnes per annum for 24 years.
Deliveries to Verkor will commence from first production for an initial period of eight years, but there is potential for renewal.
Company shares were up 7.46 per cent to trade at 36 cents at 1:50 pm AEDT.