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Stellantis Signs Binding Agreement with Element 25 for Manganese Sulphate Supply for EV Batteries

Manganese Sulphate Supply for EV Batteries

Stellantis and Element 25 sign a binding agreement for Element 25 to supply Manganese Sulphate Supply for EV Batteries.

Stellantis and Element 25 announced today the signing of a binding agreement for Element 25 to supply battery grade, high purity manganese sulphate monohydrate to Stellantis for use in electric vehicle (EV) battery packs. The five-year agreement calls for shipments to begin in 2026, a total volume of 45 kilotons, and options to extend the supply term and volumes.

Element 25 will source the material from its Butcherbird project in Western Australia and plans to construct a processing facility in the United States. Stellantis will 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 agreement with Element 25 reinforces Stellantis’ electrification strategy, which includes securing substantial supplies of raw materials for battery electric vehicle (BEV) production. Manganese is a key stabilizing element in the cathode of EV batteries.

As part of its Dare Forward 2030 strategic plan, Stellantis announced plans of reaching 100% of passenger car BEV sales mix in Europe and 50% passenger car and light-duty truck BEV sales mix in the United States by 2030. Stellantis will be the industry champion in climate change mitigation, becoming carbon net zero by 2038, with a 50% reduction by 2030. 

Stellantis plans to invest more than €30 billion through 2025 in electrification and software development, while targeting to continue to be 30 percent more efficient than the industry with respect to 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,” 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.”

Performance of the parties under the binding term sheet is conditioned on satisfactory completion of technical due diligence and a feasibility study.

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