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Immediate Release

DOD Awards $20 Million to Enhance Domestic Manganese Supply Chain

The Department of Defense announced today a $20 million award to South32 via the Defense Production Act Investment (DPAI) Program. The award is for South32's Hermosa Project, which will sustainably produce battery-grade manganese in Santa Cruz County, Arizona. This award also supports the 2024 National Defense Industrial Strategy to continue and expand support for domestic production to increase supply chain resilience.

"This first DPA award for manganese production is a big step towards reducing import dependency throughout the battery material supply chain," said Mr. Anthony Di Stasio, acting Deputy Assistant Secretary of Defense for Industrial Base Resilience.

Manganese is an essential material used in batteries for DoD and civilian applications. DPA funds will enable the company to accelerate the Hermosa Project to deliver ore up to two years earlier than originally planned. Upon successful completion of this effort, South32 will be the first sustainable, domestic producer of battery-grade manganese.

This is the latest of 16 awards made by the DPAI program across multiple areas totaling $356 million since the beginning of fiscal year 2024. DPAI is overseen by the ASD(IBP)'s Manufacturing Capability Expansion and Investment Prioritization (MCEIP) program, in the Office of the Deputy Assistant Secretary of Defense for Industrial Base Resilience.

For more information on MCEIP, please visit:

About the Office of the Assistant Secretary of Defense for Industrial Base Policy (OASD(IBP))

The OASD(IBP) works with domestic and international partners to forge and sustain a robust, secure, and resilient industrial base enabling the warfighter, now and in the future. OASD(IBP) also utilizes 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.  It underscores the Department's ongoing dedication to safeguarding the integrity of our crucial supply chain and furnishing our warfighters with requisite materials and technologies promptly. To learn more at the DIBC OTA, please visit: