Stellantis N.V. and Australian mining company Element 25 Limited have signed a binding agreement for Element 25 to supply Stellantis with battery-grade, high-purity manganese sulphate monohydrate (HPMSM) for use in electric vehicle (EV) battery packs. The agreement stipulates that shipments will commence in 2026, have a total volume of 45,000 tonnes, and have options to expand the supply period and volume.
Two weeks ago, Element 25 revealed an update on the planned manufacture of HPMSM from manganese oxide concentrates produced at its Butcherbird Project in Western Australia.
The highlight is the redirection of engineering resources to cover the proposed U.S. location, resulting in the release of an amended feasibility study (FS) for the company’s first HPMSM manufacturing facility in the March quarter of 2023.
This change in the project FS schedule has potential advantages, as a facility constructed in the United States will be ideally positioned to service U.S. markets directly and could potentially take advantage of favourable provisions of the Inflation Reduction Act (IRA) and associated legislation, which could have a positive impact on the company.
Stellantis will provide $30 million in two tranches towards the development of the facility. Seventy per cent of the capital will go towards electrification and software development through 2025 while aiming to remain 30 per cent more efficient than the industry in terms of total Capex and R&D spending as a percentage of revenues.
Stellantis’s CEO, Carlos Tavares, stated that the company’s commitment to a carbon-neutral future involves the development of a smart supply chain to meet consumers’ demand for electric vehicles. He stated that electric vehicles that provide a revolutionary customer experience in terms of propulsion, connectivity, and convenience are fundamental to its Dare Forward 2030 ambition to provide safe, clean, and cheap mobility.
The arrangement with Element 25 enhances Stellantis’ electrification strategy, which involves securing considerable raw material sources for battery electric vehicle (BEV) manufacturing. Manganese is an essential stabilising ingredient in the cathode of electric vehicle batteries.
As part of its Dare Forward 2030 strategic plan, Stellantis stated its intention to reach a sales mix of 100 per cent BEV passenger cars in Europe and 50 per cent BEV passenger cars and light-duty trucks in the U.S. by 2030. Stellantis will be the industry leader in mitigating climate change, achieving carbon neutrality by 2038 and a 50% decrease by 2030.
Stellantis’ support for Element 25’s high purity battery-grade manganese sulphate project is a fantastic endorsement from one of the world’s largest automakers and validates the company’s aims to become a globally significant long-term supplier of battery materials to meet rising global demand, said Element 25 Managing Director Justin Brown. He added that the company is aligned with Stellantis’ decarbonisation and electrification objectives, which are among the most aggressive in the sector, and has promised to achieve net-zero carbon emission targets as part of this agreement.
