EV Battery Gold Rush Down Under – Stellantis and Element 25

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Stellantis N.V.* (NYSE / MTA / Euronext Paris: STLA) and Element 25 Limited (ASX: E25) announced today the signing of an agreement for Element 25 to supply battery grade, high purity manganese sulphate monohydrate to Stellantis for use in electric vehicle (EV) battery packs. The five-year agreement calls for shipments to begin in 2026, a total volume of 45 kilotons, and options to extend the supply term and volumes.

The deal with Element 25 – similar to ongoing EV battery supply chain moves at other automakers –  is key to Stellantis’ stated electrification strategy, which includes securing substantial supplies of raw materials for battery electric vehicle (BEV) production. Manganese is a stabilizing element in the cathode of EV batteries.

Element 25 will source the material from its Butcherbird project in Western Australia and plans to construct a processing facility in the United States. Stellantis will make an unspecified equity investment in Element 25. Stellantis plans to invest more than €30 billion through 2025 in electrification and software development, while attempting to be 30% more efficient than the industry with respect to total Capex and R&D spend versus revenues.

“Stellantis’ support for Element 25’s high purity battery-grade manganese sulphate project is a fantastic endorsement by one of the world’s largest automakers and validates our plans to become a globally significant long-term supplier of battery materials to meet growing global demand,” said Element 25 Managing Director Justin Brown.

Stellantis previously announced plans of reaching 100% of passenger car BEV sales mix in Europe and 50% passenger car and light-duty truck BEV sales mix in the United States by 2030. Stellantis wants to become carbon net zero by 2038, with a 50% reduction by 2030.

*Stellantis

Stellantis is one of the world’s leading automakers and a mobility provider. Its brands include Abarth, Alfa Romeo, Chrysler, Citroën, Dodge, DS Automobiles, Fiat, Jeep^®, Lancia, Maserati, Opel, Peugeot, Ram, Vauxhall, Free2Move and Leasys. During 2021 Stellantis global sales were 6 million vehicles at $172 billion for 5th place by volume and 3rd in the world by total revenue. Stellantis was formed by a merger of FCA and PSA in January of 2021.