General Motors Co. (GM) has announced a new supply agreement with Element 25 Ltd. (E25), an Australia-based company, for a yearly supply of up to 32,500 metric tons of manganese sulfate. This deal will bolster GM’s efforts to produce over a million electric vehicles in North America.
As part of the agreement, GM will extend an $85 million loan to Element 25 for building a new facility in Louisiana that will be responsible for producing battery-grade manganese sulfate starting from 2025. According to Doug Parks, Executive Vice President of Global Product Development, Purchasing, and Supply Chain at GM, “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 free trade agreement countries like Australia.”
This move by GM underscores the automaker’s commitment to sustainability and reducing its carbon footprint. Over the past three months through Thursday’s trading period, GM’s stock has gained 7.3%, while the S&P 500 has advanced 9.5%.