Euro Manganese Secures Critical Battery Material Supply Deal with Integrals Power: A Major Boost for European EV Battery Production

The European battery industry received a significant boost today with the announcement of a landmark offtake term sheet signed between Euro Manganese Inc. (TSXV: EMN; OTCQB: EMMNF; Frankfurt: EMM2), a leading developer of a sustainable manganese project in Germany, and Integrals Power, a rapidly growing battery materials processor. This agreement marks a crucial step toward securing a reliable and ethically sourced supply of high-purity manganese for the burgeoning European electric vehicle (EV) battery market. The deal underscores the growing importance of securing domestic and regional battery material supply chains to reduce reliance on global supply uncertainties and geopolitical risks, a crucial aspect of the European Green Deal's ambition.

A Strategic Partnership for Sustainable Battery Production

This offtake term sheet represents a significant step forward for both companies. For Euro Manganese, it validates their Chvaletice manganese project in the Czech Republic as a key supplier of high-quality manganese sulfate monohydrate (MnSO4·H2O), a critical component in lithium-ion batteries. For Integrals Power, this secures a consistent supply of a crucial raw material, allowing them to expand their processing capacity and meet the soaring demand for battery materials from the booming EV sector. This collaboration strategically positions both companies at the forefront of the burgeoning European battery value chain.

Securing European Battery Supply Chains: A Critical Need

The European Union has made significant investments in fostering domestic battery production as part of its broader strategy for green energy transition. The EU's Battery Regulation, aimed at promoting sustainable and responsible battery production within the region, puts a strong emphasis on sourcing materials ethically and sustainably. This agreement between Euro Manganese and Integrals Power aligns perfectly with these objectives, providing a secure and traceable supply chain for manganese, a critical raw material often sourced from regions with questionable environmental and social practices. The deal highlights the growing need to establish resilient and transparent supply chains for battery materials to support the continent's ambitious electric mobility goals.

Key Highlights of the Offtake Term Sheet:

• Long-term Supply Agreement: The offtake term sheet covers a substantial portion of Euro Manganese's projected manganese sulfate monohydrate production from the Chvaletice project. The exact quantities are still confidential but represent a significant commitment for both parties.
• High-Purity Manganese Sulfate Monohydrate: The agreement specifically focuses on supplying high-purity manganese sulfate monohydrate, meeting the stringent requirements of modern EV battery cathode manufacturers. This aspect is crucial, as battery performance is highly dependent on the purity of its constituent materials.
• Sustainable and Ethical Sourcing: The Chvaletice project emphasizes sustainable and ethical mining practices, aligning with the EU's emphasis on environmentally responsible sourcing. This commitment ensures the supply chain's transparency and sustainability, a crucial factor in securing market access.
• Boosting European Battery Manufacturing: This partnership strengthens the European battery ecosystem by providing a secure and traceable supply of critical materials, reducing reliance on imports and supporting the growth of domestic battery manufacturing.

The Chvaletice Project: A Sustainable Manganese Source

The Chvaletice manganese project is strategically located in the Czech Republic, offering several advantages. Its proximity to key European battery manufacturing hubs reduces transportation costs and lead times, contributing to a more efficient and sustainable supply chain. Furthermore, the project benefits from existing infrastructure, reducing the environmental impact and capital expenditure compared to developing a greenfield project.

Environmental and Social Responsibility

Euro Manganese's commitment to sustainable and ethical practices is a key differentiator. The company is actively working to minimize the environmental footprint of the Chvaletice project through various initiatives:

• Recycling and Waste Management: Implementing state-of-the-art recycling and waste management systems to minimize waste and environmental impact.
• Water Management: Utilizing efficient water management techniques to conserve water resources.
• Community Engagement: Collaborating closely with local communities to ensure the project's positive social and economic impact.

These initiatives demonstrate Euro Manganese's commitment to responsible mining and its alignment with the EU's sustainability goals. This commitment is attracting significant interest from battery manufacturers who are increasingly prioritizing ethical and sustainable sourcing practices.

Integrals Power: A Key Player in Battery Material Processing

Integrals Power is emerging as a significant player in the European battery material processing sector. Their expertise in processing battery materials and their commitment to sustainable practices make them an ideal partner for Euro Manganese. This partnership complements Integrals Power's existing operations and strengthens their position in the rapidly expanding battery materials market. Their role in refining and preparing the manganese for battery cathode manufacturers highlights the crucial intermediary step in the battery supply chain.

The Future of Manganese and European Battery Production

This offtake term sheet represents a significant step towards strengthening the European battery supply chain. The agreement between Euro Manganese and Integrals Power highlights the growing importance of securing reliable, sustainable, and ethical sources of critical battery materials. The increasing demand for electric vehicles and the EU's ambitious climate targets are driving significant investment in the European battery industry, and this partnership is poised to benefit from this burgeoning market. The successful development and operation of the Chvaletice project will not only provide a critical source of manganese for the European battery industry but also demonstrate the feasibility of sustainable and ethical battery material sourcing. This deal sets a positive precedent and could pave the way for further collaborations in the European battery materials sector, ultimately contributing to a more resilient and sustainable European economy. The ongoing development of the project and the expansion of the partnership promises exciting developments in the coming years, solidifying the position of both Euro Manganese and Integrals Power within the growing European green technology sector. The future looks bright for both companies and the wider European battery landscape.