Global car giant signs manganese supply deal with Australian miner for EV battery packs

Global car making giant Stellantis has signed a supply agreement with Australia’s Element 25 for battery grade, high purity manganese sulphate monohydrate for use in EV battery packs.

The ASX-listed Element 25, headquartered in West Perth, operates the Butcherbird Manganese Project in the Pilbara region of Western Australia, Australia’s largest onshore manganese resource.

Element 25 has entered into a binding five-year agreement with Stellantis to supply a total of 45 kilotons of battery grade, high purity manganese sulphate monohydrate. Shipments to Stellantis will begin in 2026. Options in the agreement allow for extending the supply term and volume.

“Our commitment to a carbon net zero future includes creation of a smart supply chain to ensure we meet our customers’ desire for EVs,” said Carlos Tavares, Stellantis CEO.

“Electric vehicles that deliver breakthrough customer experience in propulsion, connectivity and convenience are central to our Dare Forward 2030 plan that delivers safe, clean and affordable mobility.”

Element 25 is also planning to construct a processing facility in the United States which will ship Stellantis’ supply of manganese sulphate.

Stellantis is also planning to make an equity investment in Element 25, amounting to $US30 million ($A43 million) in two tranches, which will help fund the US processing facility.

“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 supports our plans to become a globally significant long-term supplier of battery materials to meet growing global demand,” said Justin Brown, managing director of Element 25.

“We are fully aligned with Stellantis’ decarbonisation and electrification goals, which represent some of the most ambitious in the industry and E25 have a pathway to reach agreed net zero carbon emission goals under this deal.”

“This is an important step in the delivery of our first production module which will combine Element 25’s innovative processing flowsheet and the high quality, ethically sourced manganese concentrate from our 100%-owned Butcherbird Project in Western Australia to deliver sustainable, ethically sourced battery grade manganese to the electric vehicle industry.”