Automaker Stellantis inks binding agreement with Element 25 for manganese sulphate supply for EV batteries

Welcome to Kitco News' 2023 Outlook Series. Uncertainty continues to dominate financial markets as central bank monetary policies push the global economy into a recession to cool down inflation. Stay tuned to Kitco News to learn from the experts on how to navigate turbulent financial markets in 2023.

(Kitco News) - Stellantis (NYSE: STLA), one of the world's leading automakers, announced today that the company has signed a binding agreement with Element 25 Limited to supply battery grade, high purity manganese sulphate monohydrate for use in electric vehicle (EV) battery packs.

According to a company statement, 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.

Stellantis said that Element 25 will source the material from its Butcherbird project in Western Australia and plans to construct a processing facility in the United States, adding that the company 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 CEO Carlos Tavares. "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."

Stellantis pointed out that the agreement with Element 25 reinforces its 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 is one of the world's leading automakers and a mobility provider. The company's brands include Abarth, Alfa Romeo, Chrysler, Citroën, Dodge, DS Automobiles, Fiat, Jeep®, Lancia, Maserati, Opel, Peugeot, Ram, Vauxhall, Free2Move and Leasys.

Element 25 is an ASX listed company (ASX: E25) operating the world class 100%-owned Butcherbird manganese project in Western Australia and developing high purity manganese sulphate monohydrate products for traditional and new energy markets. It aims to become an industry leading, world class, low-carbon battery materials manufacturer.