General Motors and Element 25 team up to expand the U.S. EV supply chain with domestic high-purity manganese sulfate production. This partnership represents a critical stride in scaling North American EV capacity beyond 1 million units annually.
General Motors Co. and Element 25 Limited have revealed a partnership for Element 25 to deliver up to 32,500 metric tons of manganese sulfate yearly, facilitating the annual production of over 1 million GM electric vehicles (EVs) in North America. As part of the agreement, GM will offer Element 25 a US$85 million loan to partially fund the construction of a novel production facility in Louisiana.
Why It Matters
The establishment of the Louisiana facility marks a crucial milestone as it is anticipated to be the first of its kind in the U.S. to produce battery-grade manganese sulfate, a key ingredient in lithium-ion battery cathodes. This advancement signifies GM’s commitment to augmenting its EV production in North America, and the creation of new jobs, predominantly in the U.S., Canada, and free trade agreement countries such as Australia.
Element 25 will generate manganese sulfate at the newly proposed facility by processing manganese concentrate from its mining operations in Australia. GM’s executive vice president, Doug Parks, underscored the facility’s significance, noting that it will be the first U.S. plant to manufacture battery-grade manganese sulfate, enhancing EV battery cell cost. On the other hand, Element 25’s Managing Director, Justin Brown, emphasized the agreement’s role in creating a resilient and sustainable North American supply chain, supporting the widespread adoption of EVs.
Element 25 is projected to invest approximately US$290 million in constructing a 230,000-square-foot facility, expected to create around 200 permanent jobs upon completion in 2025. This initiative, along with GM’s ongoing efforts to fortify its domestic EV production supply base, is set to redefine the future of EV manufacturing, introducing millions of customers to the environmental benefits and performance of EVs.