Element 25 to supply battery-grade manganese sulfate (HPMSM) to General Motors’ (GM) USA ultium battery plants

Element 25 (E25 or Company) (ASX: E25) and General Motors (NYSE:GM) announce an agreement for E25 to supply up to 32,500 metric tons of manganese sulfate annually, which will support GM’s annual production of more than 1 million EVs in North America. Under the agreement, GM will provide E25 with a US$85 million loan to partially fund the construction of a new facility in Louisiana, USA, for production of battery-grade manganese sulfate – a key component in lithium-ion battery cathodes – starting in 20251 . (Facility)At the facility, E25 will produce manganese sulfate by processing manganese concentrate from its mining operations in Western Australia. It is expected to be the first facility of its kind in the U.S2

Element 25 Managing Director Justin Brown said: “E25 aims to be a 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. 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 executive vice president, Global Product Development, Purchasing and Supply Chain, Doug Parks said: “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, favorable commercial terms and thousands of new jobs, especially in the U.S., Canada and with free trade agreement countries such as Australia. 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 sulfate, a key component of cathode active material which helps improve EV battery cell cost.”