GM has announced a new deal with Element 25 Limited (E25) that will see the latter supply the Detroit-based automaker with manganese sulfate for use in EV battery production.
Under the terms of the agreement, General Motors will provide Element 25 with an $85 million loan to help fund the construction of a facility in Louisiana that will produce battery-grade manganese sulfate. In return, E25 will supply up to 32,500 metric tons of the material annually to support up to an annual production of 1 million GM EVs. With construction set to commence in late 2023, this facility will be the first of its kind in U.S.
“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,” GM Executive Vice President of Global Product Development and Purchasing & Supply Chain Doug Parks stated in a prepared statement. “The facility E25 will build in Louisiana is significant because it’s expected be the first plant in the United States to produce battery-grade manganese sulfate, a key component of cathode active material which helps improve EV battery cell cost.”
Overall, Element 25 expects to invest roughly $290 million to build the 230,000 square-foot facility. The plant is currently scheduled to open in 2025, and is projected to create approximately 200 permanent jobs once it’s fully operational.
“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,” Element 25 Managing Director Justin Brown was quoted as saying. “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.”
As a reminder, this development comes as General Motors continues on its quest to become completely carbon-neutral by 2035. In addition, The General is looking to source more electric vehicle components from the U.S. to qualify for the Federal EV tax credits.