Element 25 Limited

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

Element 25 to supply battery-grade manganese sulfate (HPMSM) to General Motors’ (GM) USA Ultium Battery Plants; GM to provide US$85M Project Financing for E25’s Louisiana HPMSM Facility

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.

Click here for the full ASX Release

This article includes content from Element 25, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.

The Conversation (0)
Miramar Resources

Goldfields Exploration Update

Miramar Resources Limited (ASX:M2R, “Miramar” or “the Company”) is pleased to provide an update on gold exploration activities within the Company’s strategic Eastern Goldfields project portfolio.

Keep reading...Show less
Element 25 Limited

Infill Drilling Completed at Butcherbird Targeting Reserve Extension to Support Expansion

Element 25 Limited (E25 or Company) (ASX: E25; OTCQX: ELMTF) is pleased to advise that resource infill drilling has been completed at the Company’s 100%-owned Butcherbird Manganese Project (Butcherbird or Project). E25 recently completed a Feasibility Study (FS) to support the Butcherbird Expansion Project, which is targeting a nominal 1.1 million tonnes per annum of manganese concentrate production1.

Keep reading...Show less
Element 25 Limited

Element 25 Extends Share Purchase Plan

Element 25 Limited (E25 or Company) (ASX: E25; OTCQX: ELMTF) advises that the closing date for the current Share Purchase Plan (SPP)1 will be extended until 5:00pm, Wednesday, 26 June 2024 Australian Western Standard Time (AWST).

Keep reading...Show less
Element 25 Limited

E25 Investigates Butcherbird Restart Options Amid Record High Manganese Ore Prices

Element 25 Limited (E25 or Company) (ASX: E25; OTCQX: ELMTF) is pleased to provide an update on activities to investigate the potential to recommence operations at the Company’s 100%-owned Butcherbird Manganese Project in Western Australia (Butcherbird) to take advantage of recent upward movement in manganese ore prices caused by market factors including disruptions at South 32 Limited’s Groote Eylandt (GEMCO) operations1. This may include the sale of stockpiles and or recommencing processing of run-of mine (ROM) stockpiles.

Keep reading...Show less
Closeup of manganese ore from mines.

Manganese in Australia (Updated 2024)

Manganese is a hard, silvery metal with many uses in the world driving demand today. Manganese mines in Australia are working to meet that demand.

Despite being brittle, it adds strength and wear-resistance to metals like iron. It can be used to make glass and ceramics, and manganese sulphate is even used as a fungicide. Manganese is also an essential mineral in our diets, and is found in bones as well as organs like the kidneys, liver and brain.

But most substantially, manganese is used in the Australian and global industrial metals sector. Right now, about 85 to 90 percent of manganese demand comes from the steelmaking sector, including ironmaking.

Keep reading...Show less
Manganese ore in the foreground at an open-pit manganese mine.

Top 5 Manganese Reserves by Country (Updated 2024)

Manganese, a key ingredient for the steel market, is also seeing growth in demand from the electric vehicle battery sector, particularly when it comes to high-purity manganese chemical products.

Manganese investors are often interested to hear which countries produce the most of the metal. After all, if a nation is producing a lot of manganese, many companies are likely operating there — and investment opportunities may thus be available. However, what investors sometimes fail to consider is manganese reserves, or how much economically mineable manganese a country holds, and what companies are working to bring those reserves into production.

CPM Group told the Investing News Network that there are about 60 development-stage manganese ferroalloy projects scheduled to start production by 2027. If all of these new projects in the pipeline are brought online, the impact on the global market would be about a 6 percent increase in manganese ferroalloy production capacity.

Keep reading...Show less

Latest Press Releases

Related News