Veteran automaker Stellantis and battery material producer Element 25 have agreed to a five-year supply agreement for high-purity manganese sulfate monohydrate for electric vehicle battery packs, as per Teslarati.
Agreement
The supply term and volume of the agreement are both extendable, and shipments are anticipated to start in 2026 with a 45-kiloton total volume.
Element 25 plans to use its Butcherbird project in Western Australia to supply the high-purity manganese sulfate monohydrate for the deal, despite also wanting to construct a processing facility there. Stellantis will contribute equity to Element 25 as part of the business agreement.
“Our commitment to a carbon net zero future includes the creation of a smart supply chain to ensure we meet our customers’ desire for EVs. 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.”
Carlos Tavares, CEO of Stellantis
Stellantis’ agreement with Element 25 will aid the seasoned automaker in securing a consistent supply of raw materials for its plans to produce electric vehicles, according to a press release. Following the contract, Element 25 will provide manganese, a crucial component of EV battery cathodes. Such a deal would be very beneficial, especially introducing sizable and well-liked electric vehicles like the Ram 1500 Revolution.
Stellantis’ targets
By 2030, Stellantis hopes to sell only electric cars in Europe and 50% electric light trucks in the US. Along with these goals, the company wants to achieve carbon net zero by 2038 and reduce carbon emissions by 50% by 2030. Through 2025, Stellantis aims to devote more than €30 billion to electrification and software development.
“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.”
Justin Brown, Managing Director of Element 25
