Lloyd J. Austin III Secretary of Defence | Official website
The Department of Defense (DoD) has announced a $20 million award to South32 via the Defense Production Act Investment (DPAI) Program. The award is intended for South32's Hermosa Project, which aims to sustainably produce battery-grade manganese in Santa Cruz County, Arizona. The award aligns with the 2024 National Defense Industrial Strategy's objective to continue and expand support for domestic production, thereby increasing supply chain resilience.
Mr. Anthony Di Stasio, acting Deputy Assistant Secretary of Defense for Industrial Base Resilience, stated, "This first DPA award for manganese production is a big step towards reducing import dependency throughout the battery material supply chain."
Manganese is a crucial material used in batteries for both DoD and civilian applications. The DPA funds will enable South32 to expedite the Hermosa Project and deliver ore up to two years earlier than initially planned. Upon successful completion of this effort, South32 will become the first sustainable, domestic producer of battery-grade manganese.
This award is one among 16 awards made by the DPAI program across multiple areas totaling $356 million since the beginning of fiscal year 2024. The DPAI program is overseen by the ASD(IBP)'s Manufacturing Capability Expansion and Investment Prioritization (MCEIP) program, housed within the Office of the Deputy Assistant Secretary of Defense for Industrial Base Resilience.
For more information on MCEIP, visit: https://www.businessdefense.gov/ibr/mceip/index.html
The Office of the Assistant Secretary of Defense for Industrial Base Policy (OASD(IBP)) collaborates with domestic and international partners to build and maintain a robust, secure, and resilient industrial base that supports warfighters now and in future scenarios. OASD(IBP) also uses a new Defense Industrial Base Consortium Other Transaction Agreement (DIBC OTA) to solicit new ideas for research or prototype project solutions for critical Supply Chain Resiliency Focus Areas. This initiative highlights the Department's ongoing commitment to safeguarding the integrity of our vital supply chain and providing our warfighters with necessary materials and technologies promptly. To learn more about the DIBC OTA, visit: https://www.dibconsortium.org/oa-24-01/.
