Stellantis, a global mobility player with 14 brands including Vauxhall, Peugeot, Fiat, Citroën and Jeep, has today announced the signing of a binding agreement for Element 25 Limited. This is to supply battery-grade, high-purity manganese sulphate monohydrate to Stellantis for use in electric vehicle (EV) battery packs.
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. Element 25 will source the material from its Butcherbird project in Western Australia and plans to construct a processing facility in the United States. Stellantis will make an equity investment in Element 25.
Carlos Tavares, Stellantis CEO, said: “Our commitment to a carbon net zero future includes creation of a smart supply chain to ensure we meet our customers’ desire for EVs.
“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.”
The agreement with Element 25 reinforces Stellantis’ electrification strategy, which includes securing substantial supplies of raw materials for battery electric vehicle (BEV) production. Manganese is a key stabilising element in the cathode of EV batteries.
As part of its Dare Forward 2030 strategic plan, Stellantis announced plans of reaching 100 per cent of passenger car BEV sales mix in Europe and 50 per cent passenger car and light-duty truck BEV sales mix in the United States by 2030. Stellantis will be the industry champion in climate change mitigation, becoming carbon net zero by 2038, with a 50 per cent reduction by 2030.
Stellantis plans to invest more than €30 billion through 2025 in electrification and software development while targeting to continue to be 30 per cent more efficient than the industry with respect to total Capex and R&D spend versus revenues.
Justin Brown, Element 25 managing director, said: “Stellantis’ support for Element 25’s high purity battery-grade manganese sulphate project is a fantastic endorsement by one of the world’s largest automakers and validates our plans to become a globally significant long-term supplier of battery materials to meet growing global demand.
“We are fully aligned with Stellantis’ decarbonisation and electrification goals, which represent some of the most ambitious in the industry and have committed to reach agreed net zero carbon emission goals under this deal.”
Stellantis recently announced a partnership with Archer Aviation to manufacture Archer’s flagship electric vertical take-off and landing (eVTOL) aircraft, Midnight. Stellantis will work with Archer to stand up Archer’s recently announced manufacturing facility in Covington, Georgia at which the companies plan to begin manufacturing the Midnight aircraft in 2024.