The GM deal with Element 25 – similar to ongoing EV battery supply chain moves at other automakers such as Stellantis includes securing substantial supplies of raw materials for battery electric vehicle (BEV) production. Manganese is a stabilizing element in the cathode of EV batteries. GM will provide Element 25 with an $85 million loan to partially fund the construction of a new facility in the state of Louisiana for production of battery-grade manganese sulfate, a vital component in lithium-ion battery cathodes.

Element 25 will source the material from its Butcherbird project in Western Australi. Stellantis will make a thus afar 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.

“E25 is working 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 expansion in the United States,” said Justin Brown, Element 25 Managing Director. “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.”