General Motors And Element 25 To Expand U.S. EV Supply Chain With Domestic Manganese Sulfate Production

Element 25 Limited (E25 or the Company) (ASX:E25) and General Motors Co. (NYSE: GM) announce an agreement for E25 to supply up to 32,500 metric tons of manganese sulfate annually, which will support GM’s annual production of more than 1 million EVs in North America.

• Element 25 Limited and General Motors LLC (GM) sign definitive agreement for the supply of battery grade high-purity manganese sulfate (HPMSM) for GM’s electric vehicle (EV) battery requirements.
  
• Element 25 to supply GM with manganese sulfate required to scale EV capacity in North America beyond 1 million units annually.
• Element 25 plans to build its first manganese sulfate facility in the U.S. which will process manganese from its Butcherbird mine in Western Australia.
• GM to provide US$85 million (~A$128 million) loan to Element 25 to build its facility in Louisiana.

Under the agreement, GM will provide E25 with a US$85 million loan to partially fund the construction of a new facility in Louisiana, USA, for production of battery-grade manganese sulfate – a key component in lithium-ion battery cathodes – starting in 20251. (Facility)At the facility, E25 will produce manganese sulfate by processing manganese concentrate from its mining operations in Western Australia. It is expected to be the first facility of its kind in the U.S².

Element 25 Managing Director Justin Brown said: “E25 aims to be a leading source of high quality, vertically integrated, traceable and ESG-compliant battery material to the global electric vehicle industry and GM’s support does more than accelerate our strategy for HPMSM production in the United States. 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.”

GM executive vice president, Global Product Development, Purchasing and Supply Chain, Doug Parks said:“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 with free trade agreement countries such as Australia. 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.”

Element 25 expects to invest approximately US$290 million to build the 230,000-square-foot facility. Site preparation is planned to begin in Q3 CY2023, and the plant is scheduled to open in 2025. The facility is projected to create approximately 200 permanent jobs when it is fully operational.

GM continues to strengthen its domestic supply base for EV production. In addition to manganese sulfate, GM has announced direct investments in lithium, nickel and other commodities, as well as cathode active material (CAM). GM and its joint venture partners are installing 160GWh of battery cell manufacturing capacity in the U.S., and its suppliers are onshoring production of permanent magnets and other EV components to North America. To date, these initiatives are creating thousands of jobs in states and provinces including California, Louisiana, Nevada, Texas, Ohio, Michigan, Tennessee, Ontario and Quebec.

Element 25 Limited (ASX: E25) operates the world class 100%-owned Butcherbird Manganese Project in Western Australia (Butcherbird), shipping high quality manganese oxide concentrate to partners in traditional steel related industries. Element 25 has developed an innovative, proprietary, low-cost flowsheet to convert Butcherbird manganese concentrate into battery grade high purity manganese sulfate monohydrate (HPMSM) to supply the global EV industry. Manganese sulfate is a precursor for battery cathode active material and critical in Australia, Europe and the USA. Element 25 aims to become an industry leading, world class, low-carbon battery materials manufacturer underpinned by the large, long life manganese resource at Butcherbird. Company information, ASX announcements, investor presentations, corporate videos, and other investor material in the company’s projects can be viewed at: www.element25.com.au.

General Motors (NYSE:GM) is a global company focused on advancing an all-electric future that is inclusive and accessible to all. At the heart of this strategy is the Ultium battery platform, which will power everything from mass-market to high- performance vehicles. General Motors, its subsidiaries and its joint venture entities sell vehicles under the Chevrolet, Buick, GMC, Cadillac, Baojun and Wuling brands. More information on the company and its subsidiaries, including OnStar, a global leader in vehicle safety and security services, can be found at https://www.gm.com.

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