AMSTERDAM – Stellantis N.V., the multinational automotive corporation, has announced that it has signed a binding agreement with Element 25 Limited to supply battery-grade, high-purity manganese sulphate monohydrate for use in electric vehicle (EV) battery packs. The five-year deal will see shipments begin in 2026, totaling 45 kilotons, with options to extend the supply term and volume.
Element 25, a mining company based in Western Australia, will source the material from its Butcherbird project and plans to construct a processing facility in the United States to meet the demand of the agreement. In addition to supplying the manganese sulphate, Stellantis will also make an equity investment in Element 25.
Manganese is a key element in the cathode of EV batteries, and this deal reinforces Stellantis’ electrification strategy which includes securing substantial supplies of raw materials for battery electric vehicle production. The agreement aligns with the company’s Dare Forward 2030 plan, which aims to reach a 100% passenger car EV sales mix in Europe and 50% passenger car and light-duty truck EV sales mix in the United States by 2030.
“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, CEO of Stellantis. “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.”
In line with its sustainability goals, Stellantis aims to become carbon net zero by 2038, with a 50% reduction by 2030. The company plans to invest over €30 billion through 2025 in electrification and software development, while targeting to continue to be 30% more efficient than the industry in terms of total Capex and R&D spend versus revenues.
“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,” said Justin Brown, Managing Director of Element 25. “We are fully aligned with Stellantis’ decarbonization and electrification goals, which represent some of the most ambitious in the industry and have committed to reach agreed net zero carbon emission goals under this deal.”
The performance of the parties under the binding term sheet is dependent on the satisfactory completion of technical due diligence and a feasibility study.
