General Motors Co. and Australia-based Element 25 Limited have signed an agreement for Element 25 to supply up to 32,500 metric tons of manganese sulfate annually to the Detroit automaker, the companies said Monday.
The supply will support the annual production of more than 1 million GM electric vehicles in North America.
Through the agreement, GM will provide Element 25 with an $85 million loan to partially fund the construction of a new facility in Louisiana for production of battery-grade manganese sulfate, which is a key component in lithium-ion battery cathodes. Production would start in 2025.
Element 25 will produce manganese sulfate at the plant by processing manganese concentrate from its Australia mining operations.
Element 25 anticipates investing $290 million to build the 230,000-square-foot facility. Site preparation is slated to start in the third quarter. When it's fully operational, the company said the plant should create 200 jobs.
"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," said Doug Parks, GM executive vice president, global product development, purchasing and supply chain, in a statement.
