Dutch automaker Stellantis has signed a five-year agreement with mining company Element 25 to supply battery-grade, high-purity manganese sulfate monohydrate for use in electric vehicle (EV) batteries.
Under the deal, Element 25 will supply 45 kilotons of the material, sourced from its Butcherbird Manganese project in Western Australia, to Stellantis beginning in 2026. The contract also includes options to extend the supply term and volumes. Element 25 says it plans to build a processing facility in the U.S. to meet the demand.
In exchange, Stellantis will make an equity investment in Element 25. The deal supports the auto manufacturer’s electrification strategy, which includes acquiring extensive supplies of raw materials for battery electric vehicle (BEV) production. Stellantis plans to invest over €30 billion through 2025 in software development and electrification.
Additionally, Stellantis plans to reach 100-percent of passenger car BEV sales mix in Europe and 50-percent passenger car and light-duty truck BEV sales mix in the U.S. by 2030, as part of its Dare Forward 2030 strategic plan. The company aims to become carbon neutral by 2038 and to achieve a 50-percent reduction in carbon emissions by 2030.
“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.”
Based in Australia, Element 25 develops refined manganese sulphate monohydrate products for traditional and new energy markets.
The company's name plays on the fact that manganese is listed as the 25th element on the periodic table. EV automakers such as Tesla and Volkswagen also are exploring manganese as an alternative to the dominant lithium ion in battery chemistry.
Headquartered in Amsterdam, Stellantis was formed in 2021 following the merger of Fiat Chrysler Automobiles with PSA Group.
Late last year, Stellantis announced that production of its new M3 electric motors would rise to more than 1 million by the end of 2024. The company is planning produce 12 electric vehicle models in France over the coming years.
