General Motors Signs Deal with Australian Supplier for EV Supply Chain Expansion
Production at the $290 million operation in Louisiana is expected to begin in 2025.
General Motors has expanded the supply chain for its electric vehicles by signing a deal with Australian supplier Element 25 for as much as 32,500 metric tons of manganese sulfate per year.
The automaker and Element 25 on Monday said the agreement between the companies includes an $85 million loan from GM to help Element 25 fund construction of a $290 million facility in Louisiana to produce battery-grade manganese sulfate. Production is expected to begin in 2025, the companies said, and Element 25 plans to use manganese concentrate mined in Australia in its Louisiana operations.
“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,” Doug Parks, GM’s executive vice president of global product development, purchasing and supply chain, said in a 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.”
The Louisiana site is expected to be 230,000 square feet, with work to prepare the site slated to start in the third quarter.
“GM’s support does more than accelerate our expansion in the United States,” Justin Brown, Element 25’s managing director, said in a statement. “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.”
This story will be updated.
GM and Element 25’s Agreement Details
General Motors and Element 25 have signed a deal that will see GM purchase up to 32,500 metric tons of manganese sulfate per year from the Australian supplier. The agreement includes an $85 million loan from GM to Element 25 to fund construction of a $290 million facility in Louisiana. The facility will be the first in the United States to produce battery-grade manganese sulfate, a key component of cathode active material. The site is expected to be 230,000 square feet, with production set to begin in 2025.
GM’s Commitment to EV Production
GM’s partnership with Element 25 is part of the automaker’s larger commitment to scaling EV production in North America. The company is investing in battery raw materials, processing and components to ensure a reliable supply chain and favorable commercial terms. GM hopes to produce well over 1 million EVs annually and create thousands of new jobs in the U.S., Canada, and other free trade agreement countries like Australia.
The Benefits of a Sustainable North American Supply Chain
The partnership between GM and Element 25 will create a resilient and sustainable North American supply chain. This supply chain will help introduce millions of customers to the performance and environmental benefits of EVs. Justin Brown, Element 25’s managing director, praised GM’s support, saying that it “does more than accelerate our expansion in the United States.”
