Element 25 Limited and Stellantis N.V. announced that they have signed a binding agreement for Element 25 to supply Stellantis with battery grade, high purity manganese sulphate monohydrate for use in electric vehicle (EV) battery packs.
Under the five-year agreement, shipments are set to start in 2026, with a total volume of 45 kilotons and options to extend the supply term and quantities. Element 25 will obtain the material from its Butcherbird project in Western Australia and intends to build a processing facility in the United States. Stellantis will also make an equity investment in Element 25.
“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, Stellantis CEO. “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.”
The partnership with Element 25 supports Stellantis’ plan to electrify its vehicle fleet, including securing a steady supply of raw materials for the production of battery electric vehicles (BEVs). Manganese is a crucial component in the cathode of EV batteries for stability.
As part of its Dare Forward 2030 initiative, Stellantis aims to achieve a mix of 100% passenger car BEVs in Europe and 50% passenger car and light-duty truck BEVs in the US by 2030. The company also aims to become carbon net zero by 2038, with a 50% reduction in emissions by 2030.
To support these goals, Stellantis plans to invest over €30 billion in electrification and software development by 2025 and to be 30% more efficient in terms of total capital and R&D expenditures compared to revenue.
“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,” Element 25 Managing Director Justin Brown said. “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.”