General Motors (GM) announced a new deal with Australian-based supplier Element 25 on Monday to expand manganese sulfate production in the US, a key EV battery component.
Under the supply agreement, Element 25 will provide GM with up to 32,500 metric tons of manganese sulfate annually to help the automaker hit its goal of producing over one million EVs in North America by 2025.
The deal also includes an $85 million GM-funded loan to help Element 25 fund the construction of a new battery-grade manganese sulfate facility in Lousiana, expected to be the first of its kind.
Starting in 2025, Element will produce manganese sulfate at the facility by processing manganese concentrate from its mining business in Australia.
Doug Parks, GM executive vice president of global product development, says the Lousiana plant is significant as it’s expected to be the first of its kind in the US to produce battery-grade manganese sulfate. Parks added:
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 free trade agreement countries like Australia.
Element 25 expects to begin site preparation for the 230,000 square-feet facility in the third quarter of 2023, creating around 200 permanent jobs once opened in 2025.
