Engineering Cost Study Validates Commercial-Scale U.S. HPMSM Capital Cost and Establishes EMM Capital Cost for Electric Metals' North Star Manganese Project
Electric’s engineering study validates a $452m plant cost, confirming the project’s pre-feasibility economics.
Electric Metals (USA) Limited (EML) announced the results of a Front-End Loading 1 (FEL-1), Class 5 costing study for its planned Gulf Coast HPMSM processing facility. Conducted by Hargrove Engineers and Constructors, the study estimates the Total Installed Cost (TIC) for a 200,000 tpy HPMSM facility at $452 million. This figure represents a ~3% cost saving compared to the $464 million TIC reported in the 2025 Preliminary Economic Assessment (PEA).
The estimate includes a 20% contingency and 5% escalation allowance, with an accuracy of ±50%. The facility is designed to process ore concentrate from the Emily, Minnesota project, with a 32-month schedule from detailed design to start-up. A separate evaluation for a 10,000 tpy Electrolytic Manganese Metal (EMM) circuit estimated an installed cost of $98.6 million. The U.S. relies 100% on imports for manganese, and the project aims to secure domestic supply chains for defense, aerospace, and battery applications.
Electric Metals (USA) Limited (EML) news validates the capital cost assumptions from the October 2025 Preliminary Economic Assessment (PEA), confirming that project economics remain robust despite inflationary pressures and engineering advancements. A 3% cost reduction on a $452 million facility serves as a positive incremental update that supports the path to a Pre-Feasibility Study (PFS). The inclusion of the EMM circuit cost, totaling $98.6 million, provides a clear capital baseline for future optimization workstreams announced in August 2026.
Electric Metals (USA) Limited is a pre-revenue junior mining company focused on the North Star Manganese Project in Emily, Minnesota. The project targets the production of High-Purity Manganese Sulfate Monohydrate (HPMSM) and Electrolytic Manganese Metal (EMM) to supply the U.S. EV battery, defense, and industrial sectors. The U.S. is 100% import-reliant for manganese, with China controlling approximately 96% of global HPMSM capacity.
The Emily deposit is one of the highest-grade manganese resources in North America, with a NI 43-101 resource estimate of: * 7.6 million tonnes @ 19.07% Mn (Indicated) * 3.7 million tonnes @ 17.04% Mn (Inferred)
The PEA outlines an after-tax NPV of $1.39 billion and an IRR of 43.5%, targeting initial production of 100,000 tpy HPMSM, expanding to 200,000 tpy.