Australia's Element 25 dips on project delay from shift of processing base

Element 25

29/12/2022 04:06

** Shares of manganese producer Element 25  E25.AX  slide as
much as 10.6% to A$0.93, their lowest level since Oct. 14 
    ** Says it is considering moving the processing location of
HPMSM, a manganese chemical used in lithium-ion batteries, to
the United States from Malaysia, which will delay the
feasibility study 
    ** Change of production base is due to the U.S.' new
Inflation Reduction Act (IRA), which allows certain tax credits
for battery components manufactured or assembled in North
America, although the details are yet to be ironed out 
    ** Element 25 says the IRA has caused "perceptible change"
in the appetite for North American-produced battery materials,
including HPMSM; potential customers may prefer a North
American-produced product to qualify for IRA tax credits 
    ** Preferred U.S. base location to be confirmed "in the near
future," E25 says 
    ** Stock logs its worst intraday percentage loss since Nov.
22 
    ** E25 down 15.5% YTD, as of last close 
 (Reporting by Harshita Swaminathan)
 ((Harshita.Swaminathan@thomsonreuters.com))