GM CEO Mary Barra. Image credit: Steve Fecht for General Motors
ASX listed Element 25 says it has secured an agreement to supply battery-grade manganese sulphate to US car giant General Motors (GM) and its expanding electric vehicle plans.
Element 25 (E25) owns and operates the Butcherbird Manganese Project in Western Australia and will now begin to supply up to 32,500 metric tons of manganese sulphate annually, supporting GM’s annual production target of more than 1 million EVs in North America.
Under the supply agreement, GM will also provide Element 25 with a loan of $US85 million (around $A128 million) to partially fund the construction of a US-based production facility.
The new facility would produce manganese sulphate by processing manganese concentrate from E25’s mining operations in Western Australia, making it the first facility of its kind in the United States.
Element 25 is planning to invest approximately $US290 million to build the 230,000-square-foot facility in Louisiana, with site preparation expected to begin in the third quarter, and operations to commence in 2025.
“E25 aims to be a leading source of high quality, vertically integrated, traceable, and ESG-compliant battery material to the global electric vehicle industry and GM’s support does more than accelerate our strategy for HPMSM production in the United States,” said Justin Brown, managing director of Element 25.
“Together, we are creating a resilient and sustainable North American supply chain that will help introduce millions of customers to the performance and environmental benefits of EVs.”
“GM is scaling EV production in North America well past 1 million units annually and our direct investments in battery raw materials, processing and components for EVs are providing certainty of supply, favourable commercial terms and thousands of new jobs,” added Doug Parks, GM executive vice president.
“The facility E25 will build in Louisiana is significant because it’s expected be the first plant in the United States to produce battery-grade manganese sulphate, a key component of cathode active material which helps improve EV battery cell cost.”
Keyword: Australia’s Element 25 lands big manganese supply for GM’s EV battery plans